Why Do Target And Walmart Sell Apple Products Cheaper?

There are many reasons the price of Apple products at Walmart and Target are cheaper. One main reason is, Target and Walmart buy the products at a wholesale price that is lower than the suggested retail price. Moreover, they sell a large number of products with a small profit margin. Moreover, target and Walmart also receive rebates back from Apple for selling a certain amount of Apple products, which is another reason Target and Walmart sell Apple products at a discount price.

Key Takeaways

• One key reason Target and Walmart sell apple products at a lower price is they buy products in Bulk from Apple
• Target and Walmart sell at a loss to attract more customers
• Salles commissions from Apple allow Walmart and Target to sell Apple products at a price lower than the original price
• Apple products at Walmart and Target are 100% genuine so there is nothing to worry about buying Apple products from this two paltforms

Reason Target And Walmart Sell Apple Products Cheaper

1. Target and Walmart Buys in Bulk from Apple

2. Target and Walmart Sell at a Loss to Attract More Customers

3. Commission from Telcos and Apple

1. Target And Walmart Buys In Bulk From Apple

Walmart and target buy apple products in bulk and so they get the products at a wholesale price that is much cheaper than the retail price of all Apple stores. So, it allows Target and Walmart to add a small profit and then sell the products at a lower price. So, this way they are able to make a small profit as well as sell the products below the store prices. For example, let’s assume Walmart bought 16GB AirPod 2 from Apple at a wholesale price of $450. The store price is $500. So, if Walmart sells the AirPod at $500 then it will have a profit of $50. But Walmart can also sell the AirPod between $455 to $490 which is lower than the store price and still make a profit. On many occasions, Walmart and Target decided to sell the product as low as their cost price of $450 to attract more people who will buy other things where they will make their profit from!   

2. Target And Walmart Sell At A Loss To Attract More Customers

At a certain time of the year, retail shops like Target and Walmart decide to lower the price of some products to attract customers to their shops to boost sales. They think that people just do not buy Apple products but will likely pick other things that they would make a profit from. Therefore, many retailers sell special products like Apple products at a little lower price than what you would pay for them at the Apple store. So, if you see a $180 AirPod being displayed for $134 at Target or Walmart then don’t be surprised. It is just a marketing strategy to lure the customer into the shop with the hope that the customer would pick up other things that will compensate for the loss.       

3. Commission From Telcos And Apple

Retailers like Target, Walmart, BestBuy, etc. also get commissions from telecommunication firms for signing up customers. Moreover, they also get a commission from Apple for selling a specified number of products like smartphones, AirPods, etc. It means if a retail store sells Apple products up to a certain amount and signup a specified number of people to their network then both Apple and Tacos will pay them some money. So, all these commissions allow Walmart and Target to sell Apple products at a price lower than the original price. Moreover, Apple users have the higher purchasing power to purchase other products. So, offering Apple products at a discount price will help the stores get this demographic of buyers into their store and make a profit by selling other products to them.

Are There Any Downsides To Buying Apple Products From Target Or Walmart?

Apple products at Walmart and Target are 100% genuine so there is nothing to worry about buying Apple products from target or Walmart. However, there is a problem with buying Apple products from Target or Walmart and that is the product warranty. If you buy Apple products from the Apple official stores then you will get a 365-day limited warranty on the product. The problem with the Apple warranty is it doesn’t start when the product gets to the end-users but from when it was purchased from Apple. So, it means if you buy an Apple product from Target or Walmart then the warranty would have started counting. For example, if Walmart purchased an Apple product in October 2021 and if you bought the product from Walmart in January 2022 then the product has only 9 months warranty left since the product has stayed for three months in the store! Moreover, when Apple sells products to third-party retailers, they remove those devices from its inventory and they are seen as sold. Therefore, the date of the sale of your product will be the date of the sale when Walmart or Target bought the product from Apple. So, when you buy Apple products from Walmart or Target then you have shortened the warranty.

Is There Any Way To Change The Warrant Date Of Apple Products?

If you purchase an Apple product from Walmart or Target and you are concerned about the shortened warranty period then the best thing you can do is to contact Apple support or call via 1-800-692-7753 and ask the Apple customer representative to change the Warranty period of your Apple product. You can only change the product purchase date through Apple’s support line or online resources because local Apple stores don’t have access to inventory. You have to provide the money receipt or a valid document that proves the date of your purchase to change the purchase date and increase the warranty date. 

FAQs About Why Do Target And Walmart Sell Apple Products Cheaper?

References:

https://www.thestreet.com/opinion/why-does-apple-let-that-dump-walmart-discount-iphones-12036033
https://discussions.apple.com/thread/2661384

Last Updated on November 16, 2022 by Magalie D.