Apple Could Benefit from Selling Macs at Wal-Mart

|
 |  Includes: AAPL, WMT
by: Eric Savitz

Apple (NASDAQ:AAPL) could eventually sell some Macs in Wal-Mart (NYSE:WMT) stores, “which could significantly increase distribution and unit shipments,” Barclays Capital analyst Ben Reitzes asserted in a research note Tuesday morning. “While we don’t expect an immediate impact this year and believe Apple would need to reposition its line-up first, we believe that closer ties to Wal-Mart makes sense.” He says more accessories are showing up on Wal-Mart shelves after a successful launch of the iPhone in the discount retail giant’s stores. The retailer also sells iPods.

Reitzes says that expanding the Macs into Wal-Mart will require more sub-$1,000 products to go along with the $599 Mac Mini and entry level $999 MacBook. Reitzes notes that Apple is more particular about who sells Macs than it is about iPods, and that it would likely start with a pilot program first. But he adds that “if done right…we believe that Wal-Mart would clearly benefit Apple due to increased distribution,” while “Wal-Mart’s brand would likely see a boost in its attempt to compete with Best Buy.”

AAPL Tuesday morning is off 14 cents at $126.51.

Original post