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"For investors worried about iPhone sales, this isn't a great sign. If demand was strong, Walmart probably wouldn't need discounts"
Apple may go under $450 next week on this news.
Re: "Wal-Mart said it is selling the 16 GB Apple iPhone 5 for $127, versus an original price of $189.97."
33% off original price is a sign of low demand for iPhone 5. It will severely squeeze AAPL profit margins.
Brace yourself for a significant decrease in AAPL earnings.
iTulip mania bubble has burst.
Walmart is getting EXACTLY what they wanted ... free advertising and viral publicity. This is simply a "loss leader" to get America's most affluent shoppers to enter their stores and open their wallets. If Apple was going to discount iPhones they sure as heck wouldn't do it someone else's brick and mortar locations! This should ensure my prediction of 58-62 million iPhones in the 4th quarter. Earnings are going to HUGE.
Sentiment: Strong Buy
Radio Shack has been doing these types of promotions for the iPhone(whether a new version or an old) for years now.
It's Walmarts way to get people in the door. To them, the cost of subsidizing the limited amount of iPhones they get daily is well worth the advertising and media attention they're getting by offering this type of promotion. If you notice, this in only offered in the store and not online. They are trying to keep this as a limited promotion for 30 days, knowing that supply issues will keep their subsidizing costs to a minimum.
I agree. Delusional longs don't seem to get that deep discounts are used to liquidate slow moving inventory. They will want you to believe that Walmart is doing it as a way to increase foot traffic. Walmart has plenty of cheaper ways of doing that.
1.Its only a 30 day special promotion for Christmas and New Year.
2.You are assuming this is bad because it will eat into profit margin. $82 less per phone.
3. But Sales will increase to offset the lower price.
4. Not said but very possible is Walmart has squeezed more contract kickback from the wireless carriers that they sign up and renew, also contributing to a lower price phone.
5. In the end is a WIN WIN for both Apple, Walmart, the consumer and Wireless carriers. This is how a free-market works,