...they are ruthless in dictating the price they will pay to suppliers, why will they let aple make more than a dollar or 2 on each phone. question:
WHAT IS APPLE'S COST BASIS FOR THE I-PHONE, I-POD, AND OTHER STUFF they sell as their margins are definitely going to be tiny. You bet walmart knows to the penny their cost and wont "let" them make more than a certain amount. Walmart as an aside, might be destroying the retail free enterprise system as we know/knew it. Whats next? walmart kiosks in all the malls so even little guys get put out of business. The lower middle class of which I am one is benefiting from this ..........now........but in 5 years when 1/2 the retailers may be out of business and another 2 million jobs lost, then we will have to see the price we paid for "low prices." Lets not forget the kids doing child labor in china either. Poor souls. I myself would gladly pay 15% more for every item at walmart if i knew no child was being exploited. But then....I only use walmart for food shopping. Thier lowest cost burgers are amazingly delicious!
It was probably a very interesting negotiation between Apple and WalMart - neither one of them is noted for backing down from their positions. My bet is that AAPL said words to the effect "This is your wholesale cost - pricing is your decision." Walmart sells iPods and I don't see a big markdown on those prices. My bet is that the iPhone will be similar.
Apple doesn't allow resellers to undercut the Apple store ... and you seem to be forgetting that ATT pays Apple a subsidy for the iPhone that is larger than the cost to the consumer!
Personally, I think that when Walmart starts selling iPhones, they will be the same models at the same prices as everyone else. This $99 4GB iPhone idea sounds fake. If the $100 difference makes or breaks someones decision, then they can't afford the contract.
Doesn't matter if they make nothing. It is the profit from the App Store that will more than double Apple's earnings when almost everyone owns an iPhone. And it costs Apple nothing to develop those Apps.
It's a no-brainer people. This will make Apple the new king of media and mobile software distribution.