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Wal-Mart to carry iPhone, isn't rolling back prices, yet

Brad Sams   on 08 December 2008 - 14:49 · 38 comments & 7610 views

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There has been much of a rumor that Wal-Mart would soon be carrying the iPhone. The rumor that the mega-store would soon be selling the almighty iPhone will finally come true by the end of December. Employees at five different Wal-Marts in the cell phone department were contacted independently and each verified that training was occurring for the iPhone and that a likely timeline for end of December was expected.

The idea of a $99.00 iPhone is still floating around but there has not been any announcement or confirmation that the iPhone will drop to that price. Many analysts believe it is inevitable that Apple will drop the price to $99.00 to help boost sales and expand its user base. It should be mentioned that the $99.00 price point has not been denounced by any party and is still a possibility considering Wal-Mart's budget friendly prices.

Apple currently only sells the iPhone at its retail stores and BestBuy. Wal-Mart will open up new sales avenues which will boost its already expansive user base. Keep an eye out at big blue and let us know if you spot any Apple iPhones at Wal-Mart.

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(2 replies) #1 roadwarrior on 08 Dec 2008 - 16:35
I work in electronics along with the phone department at a Wal-Mart and haven't heard anything about this. Perhaps they are starting in larger markets or only in certain stores, but you'd think we would have heard about it by now if it was happening. I'll ask a couple of the other associates tomorrow night at work and see what they have heard.
#1.1 Magallanes on 09 Dec 2008 - 11:52
Analysts say Apple may offer a discontinued 4-gigabyte version through Bentonville, Arkansas-based Wal-Mart and sell it for $99. Apple currently sells two models at $199 and $299


Apple spokesman Steve Dowling wouldn’t respond to the report and said the company “does not comment on rumor or speculation.” Wal-Mart spokesman Dan Fogleman said the company hasn’t made an official announcement on an iPhone offering and has no comment. AT&T spokesman Mark Siegel declined to comment.


So, its just a gossip propagated by bloomberg .

First: you can't trust in any economic analyst, all of them stink, or they are coin flipping or they are putting their wish as a analysis.
If you are a good economic analyst then your work for a company where your analysis usually are keep under a NDA, hence private.
Second:bloomberg s*ck.
And third :extrapolating the current price, a unlocked iphone cost over $300, no matter if its the low-end 4gb, $99 is lower the manufacturing price.

Last edited by Magallanes on 09 Dec 2008 - 12:05
#1.2 roadwarrior on 10 Dec 2008 - 21:30
Magallanes said,
So, its just a gossip propagated by bloomberg .


Actually, it's not. Checked with some co-workers last night and the information just came through to our store, we will be carrying the iPhone. I had been off for a couple of days, which is why I hadn't gotten the word.
#2 Sawyer12 on 08 Dec 2008 - 16:46
That would be cool a 99$ iPhone! Especially if it comes to the UK market
(12 replies) #3 LTD on 08 Dec 2008 - 17:29
Apple needs to be very careful not to dilute the brand name if they're going to do this. Might not be great for their margins, either.

Until I do more research into this, I'm reserving my judgment about this.
#3.1 +Frazell Thomas on 08 Dec 2008 - 19:26
Although not a negative, it isn't your typical Apple is god post.

Thanks for posting something that wasn't a bad read.
#3.2 PureLegend on 08 Dec 2008 - 20:12
Agreed LTD.
#3.3 bdsams on 08 Dec 2008 - 20:53
Agreed LTD, it verywell may delute the brand image Apple has worked so hard to create...
#3.4 excalpius on 08 Dec 2008 - 21:58
Apple has one and only one killer app/tech right now, the iPhone. With every other major vendor releasing v1 of their touchphone competitors, this is the right time to sell as many as possible. In the next year or two, the competitors will have perfected their designs and then Apple's iPhone will be one of many...against much bigger players who play for keeps.

It was a HUGE mistake to bundle the iPhone with one company, especially one as universally despised as AT&T. Apple had an unprecedented window to snag a huge market share in one of the world's major ESTABLISHED consumer electronics markets (by comparison, they essentially created the iPod market, HUGE difference).

Those leapfrog opportunities don't come often with such major technology players already saturated a market space. And while it made sense short term, long term it will cost them billions.
#3.5 LTD on 08 Dec 2008 - 23:36
excalpius said,
Apple has one and only one killer app/tech right now, the iPhone. With every other major vendor releasing v1 of their touchphone competitors, this is the right time to sell as many as possible. In the next year or two, the competitors will have perfected their designs and then Apple's iPhone will be one of many...against much bigger players who play for keeps.

It was a HUGE mistake to bundle the iPhone with one company, especially one as universally despised as AT&T. Apple had an unprecedented window to snag a huge market share in one of the world's major ESTABLISHED consumer electronics markets (by comparison, they essentially created the iPod market, HUGE difference).

Those leapfrog opportunities don't come often with such major technology players already saturated a market space. And while it made sense short term, long term it will cost them billions.



The iPhone, like the iPod, has a lock on the "cool" factor. Which in turn relegates everything else to the exact opposite in terms of mass appeal. If nothing else, the Apple name and reputation a la iPod will ensure that everyone else will fight an uphill battle. As of now, the competition is destined (for God knows how long), to work away in Apple's shadow. Good luck trying to break out of it.

This isn't to say that competitors won't be able to come up with a solid product. But overcoming the Apple name, in light of what the iPod has already done for it, will not be easy.

So is this the iPod, part 2? Looks like it for the time being.

Last edited by LTD on 09 Dec 2008 - 01:10
#3.6 LTD on 08 Dec 2008 - 23:36
-double post-
#3.7 RAID 0 on 08 Dec 2008 - 23:43
bdsams said,
Agreed LTD, it verywell may delute the brand image Apple has worked so hard to create...


I think you mean "smug factor". Hell, if the iPhone was 99 bucks, I'd go get one... out of spite. I'd show it off to other iPhone users and ask, "Did you get yours for 99 bucks too?" I'm sure that would be a real bad day for smuggers everywhere.

/snark
#3.8 LordJTC on 09 Dec 2008 - 03:44
RAID 0 said,
I think you mean "smug factor". Hell, if the iPhone was 99 bucks, I'd go get one... out of spite. I'd show it off to other iPhone users and ask, "Did you get yours for 99 bucks too?" I'm sure that would be a real bad day for smuggers everywhere.

/snark


Haha yeah, I'd probably do it too, all my friends who paid $600+ for one because they didn't want a contract...
#3.9 Veritas1 on 09 Dec 2008 - 04:42
excalpius said,
It was a HUGE mistake to bundle the iPhone with one company, especially one as universally despised as AT&T.


Do you know what you are talking about????

AT&T has the highest rated customer satisfaction scores according to JD power and Associates between the top 4 (Verizon, AT&T, Nextel|Sprint, T-Mobile). Also the residual kickback apple makes on each iPhone sold is incredible. Forget the intial 250USD profit they make on ones sold outside of their store. They also get between 7 and 12 USD per month from AT&T for ever activated iPhone. This is free and clear profit as they dont have to deal with iPhone service once it is out of the box except for warrenty. You need to get your facts right dude, apple is laughing all the way to the bank with their at&t exclusive partnership.
#3.10 excalpius on 09 Dec 2008 - 05:13
Just keep touting AT&T all you want. Most business users, especially on the West Coast, are STILL boycotting them, even though they are now a new company.

I'll just assume you are either A) a spokesman for AT&T (since you keep repeating the same post here) or B) live on the East Coast where coverage is better, or both.
#3.11 +Frazell Thomas on 09 Dec 2008 - 06:15
Veritas1 said,
Do you know what you are talking about????

AT&T has the highest rated customer satisfaction scores according to JD power and Associates between the top 4 (Verizon, AT&T, Nextel|Sprint, T-Mobile). Also the residual kickback apple makes on each iPhone sold is incredible. Forget the intial 250USD profit they make on ones sold outside of their store. They also get between 7 and 12 USD per month from AT&T for ever activated iPhone. This is free and clear profit as they dont have to deal with iPhone service once it is out of the box except for warrenty. You need to get your facts right dude, apple is laughing all the way to the bank with their at&t exclusive partnership.


Umm... Do you know what you are talking about? T-Mobile is the highest ranked wireless carrier by JD Power as it has been for almost 10 years...

AT&T is tied at 3rd with only Sprint being lower.

http://www.jdpower.com/Telecom/ratings/wir...ings-(volume-1)
#3.12 excalpius on 09 Dec 2008 - 06:59
Oooh, SNAP!
(7 replies) #4 ir0nw0lf on 08 Dec 2008 - 18:02
I've been on the fence since day 1 over an iPhone, price was the only reason keeping me away. This may change my mind, to which some of you will probably say he's losing it now LOL.
#4.1 excalpius on 08 Dec 2008 - 21:59
You still have to pay for AT&T. That's always been the downside to an iPhone.
#4.2 Veritas1 on 09 Dec 2008 - 04:35
excalpius said,
You still have to pay for AT&T. That's always been the downside to an iPhone.


AT&T has the top rated cellular data network in the US and it has the best call service on east coast according to a major recent survey. You have to have cellular service on an iPhone or you may as well have an iPod Touch. I don't see AT&T service as a downside. If anything its a major upside. The Android G1 being on TMobile is a downside. Their network is worse then Nextel and thats saying something.
#4.3 excalpius on 09 Dec 2008 - 05:10
I live on the West Coast and we killed AT&T for a reason.
#4.4 +Frazell Thomas on 09 Dec 2008 - 06:16
Veritas1 said,
AT&T has the top rated cellular data network in the US and it has the best call service on east coast according to a major recent survey. You have to have cellular service on an iPhone or you may as well have an iPod Touch. I don't see AT&T service as a downside. If anything its a major upside. The Android G1 being on TMobile is a downside. Their network is worse then Nextel and thats saying something.


See my comment to the last time you spread this FUD... AT&T is NOT the highest ranked carrier by JD Power in the US... PERIOD.
#4.5 excalpius on 09 Dec 2008 - 06:59
Double SNAP!
#4.6 +macf13nd on 10 Dec 2008 - 13:46
this comments page is excellent!
#4.7 +macf13nd on 10 Dec 2008 - 13:46
-doublepost
(4 replies) #5 Ambroos on 08 Dec 2008 - 18:17
WTF... 99$ iPhone!? Here in Belgium the 8GB edition is 525EUR, that's 680$!!! Apple really needs to fix their pricing. (they are unlocked and completely contract-less here though)
#5.1 +Frazell Thomas on 08 Dec 2008 - 19:29
Prices are lower in the US because AT&T swallows a lot of the cost (hense the contract)...

Hense the reason AT&T has such steep writedowns this year.
#5.2 giga on 08 Dec 2008 - 20:26
Frazell Thomas said,
Prices are lower in the US because AT&T swallows a lot of the cost (hense the contract)...

Hense the reason AT&T has such steep writedowns this year.

Apple needs to fix the pricing? Blame your government and taxes.
#5.3 Jugalator on 09 Dec 2008 - 13:34
giga said,
Frazell Thomas said,
Prices are lower in the US because AT&T swallows a lot of the cost (hense the contract)...

Hense the reason AT&T has such steep writedowns this year.

Apple needs to fix the pricing? Blame your government and taxes.

Such a price diff is not due to taxes.
#5.4 ricknl on 09 Dec 2008 - 16:27
I live in New York, and they brainwash people here that the taxes are very low and that's the reason why they lack all those social rights. Amusingly I a pay here more taxes (as percentage) than I did in Amsterdam!

Secondly, your mobile phone might be much cheaper in Belgium ( I mean the total cost of ownership)

In the US you'd always pay for a telephone and then you have monthly subscription fees. However, in Europe, in many cases, you can get a free phone i you pay higher subscribtion fees.

The cheapest iPhone here is: $199 + $83/month + you pay $.20 for every text message you send and receive (yes, you pay even when you receive a text message!!)

Above all, in BE they cannot lock down a mobile Phone as the law prohibits it. So whatever you get over there in Belgium it is unlocked.
#6 Krome on 08 Dec 2008 - 19:08
I will buy 2 of that without the grease
#7 brettuk on 09 Dec 2008 - 03:16
I got my iPhone for nothing in the UK it's heavily subsidised by O2. Even the cheapest package one is 99 (~$150 at current exchange rates). I think the iPhone 3G has done much better here as it's been made so much cheaper the orginal was stupidly expensive. Now for an extra 10 a month more than I was paying for my old phone I get a nice iPhone which I love (mostly...).

Maybe in a few years android will be a really big player after it's gone past it's 1st version. I'd consider switching if android significantly improves, or maybe even the next windows mobile (you never know lol) i'm no fan boi android and win mob should end up being cheaper though due to the oem nature of it.
(1 reply) #8 Veritas1 on 09 Dec 2008 - 04:32
Gotta say this article is a bit off. While I can not comment on whether or not Apple will allow Walmart to carry the iPhone. Apple first has to get permission from my company AT&T. First let me tell you that AT&T has taken a huge hit on the cost of the iPhone 3g. We are laying off 12,000 jobs and one of the primary reasons secondary to the economy is the losses accrued on the iPhone 3g. We heavily subsidize the cost of the iPhone when you sign for a two year plan, which is required with purchase of an iPhone. It takes an estimated 18 months for us to recuperate the loss and make a profit on average because more iPhones are sold as a 9.99 add a line to family plans with 30 dollar data plan. If walmart sells the iphone at 99 they will be taking a unbeliable loss. AT&T pays walmart and other 3rd party cellphone companies a set commission based on activated rate plan. This means that no matter what plan is activated on an iPhone sold at 99USD they would take a loss. I doubt we will ever see a price that low, and there certainly will never be a discrepancy between retailers of the product. Apple will not allow a company to undersell their own product unless it goes down across the board and our VP of finance has let out communications that says it will never go below this price.
#8.1 excalpius on 09 Dec 2008 - 07:00
Ah, you DO work for AT&T. That explains your previous utterly inaccurate posts.

Nice try.
#9 RebelSean on 09 Dec 2008 - 07:50
We were contacted by our home office two days ago to make sure that training was started in our store. Everyone who works in the electronics department was required to pass these training courses before we start to sale them. Not sure when our store is going to start selling them, but I assume before anyone else in the district because we have the best sales over everyone else .
(1 reply) #10 LTD on 09 Dec 2008 - 12:47
Makes no difference who the carriers are - contracts or no contracts, etc. When something is in high demand, consumers will go out of their way to acquire it.
#10.1 excalpius on 10 Dec 2008 - 09:32
Not true. Apple's sales of the iPhone were could but not nearly as good as they would have been if iPhone had been released in the same manner as the iPod.

One of the reasons the iPod achieved ubiquity was because anyone could buy an iPod (and accessories) anywhere.

Apple missed an unprecedented opportunity to grab marketshare commensurate with the mindshare they achieved by leapfrogging so many billion dollar companies.
#11 atari800 on 09 Dec 2008 - 13:28
I wonder if they will carry other Apple products.
Airbook $1421.64 - You save 40%
Replacement Mouse $33 - You save 25%
Don't forget to check check our extensive software section...err isle....err shelf...err shelf space, right between the OS/2 and Linux software

hehehe - only kidding
Seriously... I think that if/when Apple does this, other phone manufacturers are not going to idly sit by. I bet Blackberry phones will drop in price around iPhones Walmart debut

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