Last week Tim Cook had commented on the importance of Apple’s partnership with mega-retail chain Wal-Mart.
“[Walmart] is an increasingly more substantial partner in the iPad space… and an evolving partner on iPhone. And so we’re working with them and enjoy working with them and hope to continue expanding.” — Tim Cook
Market research firm Consumer Intelligence Research Partners (CIRP) has released a new report, shedding light on how “substantial” of a partner Wal-Mart is to Apple. The firm’s report has claimed that Wal-Mart now accounts for 11% of all iPad sales pegging them as the third largest iPad retailer. By comparison, Apple’s online website and retail chains account for 26% of all iPad sales. Best Buy is not far behind with their stores pushing 24% of iPad sales along with selling almost as many iPhones as Apple retail. Amazon comes in fourth behind Wal-Mart accounting for 8% of iPad sales.
CIRP culled the numbers from a February survey of customers who had purchased an iPad in the last 90 days. Demographics of the sample size were not given. Also, the Amazon number is likely disingenuous considering the fact that Amazon is not an authorized reseller, Amazon’s partners are selling it.
Business Insider made an observation that while Wal-Mart has the potential to get the iPhone into more homes, this also drives down the average selling price of iPads. This happens because Apple needs to let Wal-Mart and other retailers take a reasonable gross profit from each purchase.
So far that “reasonable gross profit” has not stopped Apple from beating financial analysts’ quarterly estimates.