Costco's AirTag Deal Reveals Apple's Surprising Strategy

When Apple Discounts This Fast, Something's Up

Apple doesn't usually slash prices one month after launch. Yet here we are: second-gen AirTags selling at Costco for $99.99 (down from $145), bringing each tracker to about $20. Even non-members can grab this deal for a $5 surcharge, or commit to a $65 annual membership.

This isn't typical Apple behavior. When Cupertino moves this quickly on pricing, there's usually a bigger play at work.

The Real Upgrades: Range and Volume

The new AirTags look nearly identical to their predecessors, but the improvements are substantial where it counts. The upgraded ultra-wideband chip extends detection range by 50%, making multi-story tracking far more reliable. The built-in speaker is also 50% louder – a godsend when your keys are buried under couch cushions.

What hasn't changed is what made the original AirTag our top pick: precision. While competitors like Tile Pro offer decent tracking, Apple's ultra-wideband technology still delivers unmatched accuracy with those helpful on-screen arrows, vibrations, and sounds.

The practical features remain intact too: user-replaceable battery, IP67 water resistance, and the ability to share trackers with up to five people. The airline integration with United, Delta, and American Airlines is particularly clever for frequent travelers.

The Network Effect Play

Here's where Apple's strategy gets interesting. Item trackers work better when more people use them – it's a classic network effect. Every iPhone becomes a potential relay point for finding lost AirTags, creating a massive crowdsourced tracking network.

By getting more AirTags into circulation quickly, Apple strengthens this network advantage over competitors. Tile has been trying to build a similar network for years, but Apple's 1.4 billion active iPhone users create an instant, global tracking infrastructure.

What Costco Members Are Really Buying

This deal isn't just about trackers – it's about ecosystem lock-in. Once you're using AirTags, you're deeper in Apple's walled garden. The seamless integration with Find My, the precision finding features, the battery life notifications – they all work because you're using an iPhone.

For Costco members, the math is simple: $20 per tracker versus $29 retail makes stocking up attractive. Attach them to car keys, luggage, backpacks, even the dog's collar. At this price point, the barrier to widespread adoption drops significantly.