DISCUSSION

Are Macs in Store for Wal-Mart?

Written by Guest contributor
By George Anderson

The recent announcement that Wal-Mart Stores is looking to significantly upgrade its consumer electronics departments has created speculation that Apple may slowly ease its way into selling its complete line of products at the chain's stores.

Ben Reitzes, an analyst with Barclays Capital, told the Apple Insider, "Apple is very particular and exclusive with who sells its Macs (much more so than iPods) and any 'Mac experiment' with Wal-Mart would likely start very gradually via a pilot program at first -- just like Mac sales started at Best Buy."

Wal-Mart's new consumer electronics departments will include an Apple boutique featuring iPod and iPhone products and accessories.

"We believe Wal-Mart is actively pitching Apple to carry more products," Mr. Reitzes said. "With Wal-Mart improving its retail displays, we believe that the mega-retailer could eventually earn the right to sell select Mac products without diluting Apple's brand."

According to Apple Insider, Steve Jobs and company have 10,000 distribution points worldwide for the Mac line. Adding them to Wal-Mart's 3,500+ stores in the U.S. would provide an immediate boost and put Macs in many rural locations that are not close to existing Apple Store locations.

Mr. Reitz believes that while the typical Mac user profile doesn't fit neatly with Walmart's, there are ways it could address the retailer's core consumer's computing needs.

"Apple could reposition the low-end of its Mac lines to be more affordable as well as eventually introduce an ultraportable touchscreen tablet device as early as this year," he said. "Apple's Mac sales growth accelerated markedly when it first expanded with Best Buy and more distribution deals may not be far behind if Apple wants to keep pace with the rapidly growing netbook category in its own distinctive way."

Discussion Questions: Do you see Macs in Wal-Mart's future? How do you see it affecting Mac sales and Apple's brand image?

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