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Wal-Mart to Sell iPhones, But at What Price?

Posted Dec 08, 2008 12:09pm EST by Aaron Task in Investing, Electronics

Apple's iPhone is one of the few products selling well this holiday season and Wal-Mart is one of the few retailers where people are shopping these days. So some marketing geniuses have decided (ta-da) it makes sense to sell iPhones at Wal-Mart stores.

Actually, it is a very good idea for both firms: Apple is seeking to dominate the smartphone apps market like Microsoft dominates PC software. Meanwhile, Wal-Mart is looking to cement its reputation as the essential retailer — and not just in bad times.

This deal should help both companies pursue those goals, although various reports say the iPhone won't be available in Wal-Mart on Dec. 28, which may cannibalize some holiday sales.

The key issue of contention right now is the price, with many sources refuting the "$99 iPhone" story, as AppleInsider.com details.

64 Comments

__A_YAHOO_USER__
__A_YAHOO_USER__ - Monday December 08, 2008 12:17PM EST

it is not my business......It is up to them......

Yahoo! Finance User
Yahoo! Finance User - Monday December 08, 2008 12:19PM EST

MMMMMM UUUUUUGGHHH

mrWonderful
mrWonderful - Monday December 08, 2008 12:31PM EST

Dam Nit

Yahoo! Finance User
Yahoo! Finance User - Monday December 08, 2008 12:37PM EST

will they have the iPhone 3G? what carrier(s) are available?

Aaron MC
Aaron MC - Monday December 08, 2008 12:40PM EST

I disagree with the assertion that the iPhone OS could become the Windows of smartphone OSes. If Apple frees the OS for different hardware, it stands a good chance of becoming very widespread, but Windows became windows because of no-longer-extant market conditions. Still, it all depends on opening it up to different hardware. It may seem unimportant, since they're already flying off the shelves, but I think the iPhone will hit saturation very quickly. Remember, the Razr continued selling only because it was free.

Paul
Paul - Monday December 08, 2008 12:42PM EST

Dec 28? That's way too late for the Christmas shopping. I think that Apple, AT&T and Walmart may be leaving $ on the table here. Think about all the Apps, music, and video that could be downloaded over the Christmas season on those new $99 phones. The iPhone also requires 2 yrs contract and a data plan - which is added ARPU for AT&T. $99 is much lower than the $199 and $299 at the ATT store and I am sure that at Walmart, it will be a big christmas hit - esp. on the last week before christmas.

William
William - Monday December 08, 2008 12:45PM EST

What happened to AT&T's 5 year exclusive? Maybe they figure the less phones they sell, the less they lose subsidizing them. Do people have short enough memories that they want investment advise from Blodgett?

Steven B
Steven B - Monday December 08, 2008 12:47PM EST

now if only apple was smart enough to break their exclusivity with crAp t&t and open it up for tmobile, they might just see the light and sell more phones. crAp t&t is making a killing charging 80+ bucks a month for service. This way with a carrier like tmo and crApt&t bidding for the phones service, plans will go down in price, and jobs will sell more phones. Unitl tomorrow when he releases the 32 gig version and than in another 2 months sends out a 64 gig gold plated phone.

MoonMan
MoonMan - Monday December 08, 2008 12:51PM EST

WM is better than a mattress for your money, but that's about all you gone get. GM, F and other amarican manufacturers are on the up swing these days.

Yahoo! Finance User
Yahoo! Finance User - Monday December 08, 2008 12:52PM EST

ATT charges $30 for the data plan - the 3G network is not very good where I live in (houston metro area) and it almost always uses the Edge network most of the time.

JJ
JJ - Monday December 08, 2008 12:52PM EST

Hey madmilker, just like a liberal, you chastise a company because it's successful, and blame the poor economy on them. They're not the ones asking for a government handout. You probably blame the oil companies too. Maybe the libs in our congress and the ones about to socialize our country ought to look at companies who are doing well, and stay out of the reguate them to death business.

Robert
Robert - Monday December 08, 2008 12:56PM EST

It will only sell if it is available for other networks. I have to pay 600 $ to cancel my present contract to spend another 200$ on an I phone ? I don't need it that bad.

Paul
Paul - Monday December 08, 2008 12:57PM EST

Personally i think this is an awful idea for not for either firm but for America. As we ship more and more jobs overseas and sell more and more things at stores like Wal-Mart that knock down the competition part of CAPITALISM we are ruining our country. If Wal-Mart sells the i-Phone at $99, AT&T and Apple will also have to sell them at this low price to stay competitive. Andrew Carnegie created a Monopoly on steel, Rockefeller on oil, J.P. Morgan on money, and now Wal-Mart with every day goods. In order to keep competition in American markets Wal-Mart must be regulated more than it is currently and all other companies should realize this and keep their products out of the store. They wuill essentially bring themselves down by selling their products in Wal-MArt instead of in their own stores.

- Monday December 08, 2008 01:01PM EST

first page, yeahhhhhh

chris
chris - Monday December 08, 2008 01:02PM EST

I couldn't agree more about the lousy condition of this country and Walmarts hand in it. They are not the only ones to blame though. The US Government for opening the doors to massive imports and eliminating quotas, the small budget consumer who willingl supports the Walmar philosophy, always low price at any cost, lower prices tommorrow is not good for growth, it is just the opposite. Sell more units (than a consumer really needs) and give it to them at a price that is dirt cheap. How is this possible? Get the merchandise overseas where product controls are loose, labor is cheap, governments subsidize. What happens next is American manufactures can not compete, Walmart shows no support and forces margins of American corporations to be so low that they must close down. Eliminating the jobs of that corp and putting people out of work. If Iphone is in Walmart, it will be the end of the Brand, Walmart kills the brand. If they lower the retail, then Apple will be selling it to them for less. Walmart can sell ten times the units of everyone else combined. That must sound juicy to Apple. But I'd be concerned about the lower margin and losing all of the higher margin from its exisitng customers. Would you buy a more expensive Iphone from say the apple store or best buy if you could get it much cheaper at Walmart? Why would anyone else carry it? Then where will apple be when eventually sales slow and walmart starts pushing the prices lower because they are the only game in town. Bottom line, and we could go on forever, is that Walmart and the sick amount of foreign made products is terrible for the economic health of this country. Some have known this for a long time, but we are just now seeing how powerful a problem this is. What happens when the US Government can't hand out money anymore? The line of last defense will be obliterated.

Paul
Paul - Monday December 08, 2008 01:03PM EST

Personally i think this is an awful idea for not for either firm but for America. As we ship more and more jobs overseas and sell more and more things at stores like Wal-Mart that knock down the competition part of CAPITALISM we are ruining our country. If Wal-Mart sells the i-Phone at $99, AT&T and Apple will also have to sell them at this low price to stay competitive. Andrew Carnegie created a Monopoly on steel, Rockefeller on oil, J.P. Morgan on money, and now Wal-Mart with every day goods. In order to keep competition in American markets Wal-Mart must be regulated more than it is currently and all other companies should realize this and keep their products out of the store. They wuill essentially bring themselves down by selling their products in Wal-MArt instead of in their own stores.

prht
prht - Monday December 08, 2008 01:07PM EST

We'd be be better off if speed limits were 55 mph (less accidents and less use of gas) and we cut the dependence on cell phones. The convenience is great, but it's overdone. Instead of using more energy, create a better source of energy. There is a need to choose the right path now before we fall off the cliff.

Paul
Paul - Monday December 08, 2008 01:13PM EST

sorry for the double post on the previous comment..............Wal-Mart will and can kill any brand name product due to its low costs of opperation. They pay close to minimum wage for all their workers and little or no benefits. If Apple had half a brain they would simply sell the iPhone to other wireless companies such as Verizon, T-Mobile, etc. This would increase their sales as well as increase the competitiveness between the wireless suppliers. They would lower prices but not ruin the market for them.

George J
George J - Monday December 08, 2008 01:13PM EST

Remember guys it is the low end early version of the phone Wal-Mart will be selling so not to worry about the cannibalization idea--that simply will not be an issue. High end buyers will still go for the high end phone, and the money will continue to flow to Apple in that part of the market. The low end phones will open a gigantic new source of revenue for Apple, not only from the phones, but also from all of their other products as this new group of people are exposed to all things Apple! Great marketing move by Jobs and company.

the joec
the joec - Monday December 08, 2008 01:16PM EST

Should be good news for stock holders.. expand the retail footprint beyond AT&T, Apple retail and Best Buy. For the madmilker - No phone is made is US..get over it. cornelius_07401 - 5 year Agreement for AT&T to be the sole carrier, not sole seller.

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