Wal-Mart to sell $99 iPhone

[dbphotos]

http://www.boygeniusreport.com/2008/...ne-at-walmart/

From SiliconValley.com:

"This vaporous item is so thin it barely rises to rumor status, but it has become engaging grist today for the legions who like to let Apple know what it should do next. The Boy Genius Report -- a popular font of such insider chatter, some of which actually turns out to be true -- says a tipster, and an unproven one at that, alleges that Apple is planning to sell a 4GB iPhone model at Wal-Mart for $99 with a two-year AT&T calling plan. Yeah, I know -- Apple ... Wal-Mart ... takes a minute for the mind to adjust. But then there are those photos of the employee training manuals, so who knows? Such a move would surely unleash a flood of sales, but would it make the brand look cheap and less cool? And Harry McCracken at Technologizer observes, "I?m not sure how well the math works: At the moment, an 8GB iPhone is $199 and a 16GB one is $299. That?s a $100 premium for an extra 8GB of memory, so it?s not clear that reducing the memory by 4GB would save Apple and Wal-Mart enough to slash the price of an entry-level iPhone by $100. And a $99 iPhone would be big news and a big hit ?- I have trouble believing that Apple would allow Wal-Mart to rack up all those sales and deny its own stores, AT&T ones, and Best Buy to get in on the action."

Still, there might be some merit in the general idea of going low. A new Gartner report today says that while the iPhone is still gaining market share at a good clip (along with RIM, at the expense of troubled market leader Nokia), the Q3 global smartphone market recorded its weakest year-on-year growth since the company began tracking. So, with consumers likely to be highly bargain conscious for the foreseeable future, maybe it makes sense to use the hardware as something close to a loss leader to build share and bring more people into more lucrative and lasting business relationships, like calling plans and the entire Apple communication-entertainment ecosystem. Would a bargain-basement iPhone come in a Big Box? We'll see."

[photonewb]

I don't understand how they could sell it for that much, even with their strong armed tactics forcing lower prices for their bulk. I just don't think Apple would succumb to it.

[nikondude24]

Um, Wal-Mart is not going to sell a 4GB iphone. Wal-mart will start selling the 8gb and 16 gb iphones starting December 28 for the same prices as AT&T.

[Spec A!]

Even if it was a 4gb phone for $99 (which I've heard for sometime now and I believe to be true), think of the saturation of Walmart stores in each market compared to Apple and AT&T stores. There are whole States that don't have an Apple store, maybe AT&T, but you bet your hiney there's a Walmart at every major town in that State. It's the IKEA bulk sales model- sell a f**k ton of them at a low price and make a killing.

If I had the choice between the gobs of feature laden cell phones out there, or an iPhone for $99, I'd get the iPhone everytime. So would everyone else.


edit- and I spoke too soon. I still would get one, and think they'd sell a ton if it were $99 though.
http://www.appleinsider.com/articles...ilability.html

[nastytrucker]

I wanted an iPhone but they dont work well with my fat fingers and their touch only interface. My HTC tilt is a good phone till they make a bigger iPhone....

[ldelacruz]

2 year contract is how they can do it if it is true. AT&T supplements the price by paying a commission or bonus for the contract. When I was an agent TMobile had the most agressive commission plan. A 1 year contract on a plan of $69.99 or more per month would pay me a $680 up front bonus plus any spiffs at the time. I would get a charge back if they were on for less than 120 days. I think the cell phone companies bank on people staying on for 3 or 4 years or more. I have been with TMobile for 8 years. So it is not a big deal to sell it for $99.

[Cambridge]

Originally Posted by nastytrucker

I wanted an iPhone but they dont work well with my fat fingers and their touch only interface. My HTC tilt is a good phone till they make a bigger iPhone....

I thought the same thing - until someone told me the trick. I admit, I was a tactile typer. I had to press keys. Then I started using the iPhone and hated it because I was always pressing the wrong keys. Someone told me the secret.

Just trust the predictive text and type away. It gets it right for me greater than 98% of the time if not better. Just don't go back and correct the word if you see yourself making a mistake, just keep typing and when you are done with each word touch the space bar and be prepared to be amazed.

[babybluetx23]

my other half used to work at walmart. we were just discussing this the other day. He said that walmart WILL probably sell that iphone for 99 bucks HOWEVER they will only have ONE in stock for that much. that is a tactic they use on hot selling items to get people by the droves into the store.

[JPalmer]

Pipe Dream

Read it and weep

[photonewb]

Originally Posted by ldelacruz

2 year contract is how they can do it if it is true. AT&T supplements the price by paying a commission or bonus for the contract. When I was an agent TMobile had the most agressive commission plan. A 1 year contract on a plan of $69.99 or more per month would pay me a $680 up front bonus plus any spiffs at the time. I would get a charge back if they were on for less than 120 days. I think the cell phone companies bank on people staying on for 3 or 4 years or more. I have been with TMobile for 8 years. So it is not a big deal to sell it for $99.

to purchase the iPhone through AT&T or Apple you still have to get a 2 year extension, so Wal-Mart isn't getting anything by going with a 2 year deal as that's the standard.

[ldelacruz]

Originally Posted by photonewb

to purchase the iPhone through AT&T or Apple you still have to get a 2 year extension, so Wal-Mart isn't getting anything by going with a 2 year deal as that's the standard.

I am not saying the 2 year deal is unique to Wal-Mart this has become more of the standard versus a few years ago. They get more commission on a 2 year deal, trust me. In the cell phone business you do not make money on the phone itself but on the contract, this is how they give away a free phone or sell an IPhone at $99. Most companies sell the phones at a loss to get the contract.

[RKEnnis]

So, looks like no $99.00 iPhone - but you CAN get two dollars off!

http://www.macworld.com/article/1377...2/walmart.html

[sandy_ruotolo]

Well this has certainly opened my eyes. Now I understand why they want the 2 year contract. I know I think California Supreme court had told the cell phone providers that they cannot charge an early-termination fee for customers who wish to switch providers. So you buy a I phone, get the two year contract, and then decided you don't want to stay with AT&T. Does that mean you can switch over to another provider with the I phone.

[nikondude24]

Guys, Wal-Mart is not going to offer a $99 iphone. Wal-Mart will begin selling the 8GB and 16GB models at normal prices of $197 and $297 beginning Sunday. To answer the above question, the iphone will only work with AT&T without being unlocked.

[galladanb]

I just bought a 16GB Ipod and love it. I did not get the Iphone,
because at the time my employer was paying for my cell work
cell and I just did not feel the need for two cell phones.

But, It does have a huge "way cool" factor!!!!!