We believe Apple could eventually sell select Mac products in Wal-Mart stores,” he wrote, “which could significantly increase distribution and unit shipments of Macs (starting with a pilot program).”
He added, 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 make sense. We are already seeing more Apple accessories make their way onto Wal-Mart shelves after a successful launch of the iPhone.”
Mr. Reitzes also believes that Wal-mart is actively pitching Apple to bring more of its products to the discounter’s shelves. This is in keeping with Wal-mart’s own efforts to boost its share of the electronics market, and to bring more high-end products to its stores.
“With Wal-Mart improving its retail displays,” he wrote, “we believe that the mega-retailer could eventually earn the right to sell select Mac products without diluting Apple’s brand (Wal-Mart is located in many rural areas not near an Apple store).”
While any agreement between Apple and Wal-mart would have to move slowly — requiring a gradual start similar to Best Buy’s reintroduction of Macs, and a direct sign-off from Apple COO Tim Cook — Mr. Reitzes stated unequivocally that he felt, “Wal-mart would clearly benefit Apple.”
Mr. Reitzes maintained his “Overweight” rating for AAPL, and his price target of US$155 per share.
In the afternoon trading session, shares in Apple traded at $128.94, up $2.29 (+1.81%), on moderate volume.
*In the interest of full disclosure, the author holds a small share in AAPL stock that was not an influence in the creation of this article.