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In its quarterly earnings call today, Costco announced that it has begun the process of “phasing out” Apple products by “mutual agreement.”

The falling out appears to have been caused by a variety of events that highlight fundamental incompatibilities between the two companies:

* Apple may have refused to offer the steep discounts to Costco that most other companies have. As a result, Apple products have never been super cheap at Costco.

* Apple has always refused to allow Costco to sell Apple products online.

* iLounge reported back in October that Apple “snubbed” Costco over iPad shipments, passing over the retailer and showering iPads on competitors like Target, Walmart and Sam’s Club.

It’s very likely that Costco will continue to sell Apple-compatible third-party accessories, however, including in stores and online.

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