The $99 Walmart-iPhone Rumor Seems Off

If the rumor is true, it would be a major win for Wal-Mart Stores, Inc. (NYSE:WMT).    Boy Genius Report has it that Wal-Mart will be selling a 4GB iPhone 3G model for $99 with a 2-year agreement.  Apple originally dropped the 4GB model and replaced it with an 8GB model.  Currently Apple Inc. (NASDAQ:AAPL) sells the 2-year contract 8GB iPhone for $199 and the 16GB iPhone for $299.

Do I believe this rumor is true?  Not really.  Wal-Mart’s customer demographic are not really the same as Apple fanboys.  Selling the phone for $99 makes the brand look cheap.  Plus if the rumor is actually true, then Apple would be sending people away from their own retail stores.

This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at

The $99 Walmart-iPhone Rumor Seems Off Comments

  1. drew says:

    I don’t think that I see the logic behind your post. Your main reason to discard the rumor is basically that Apple=Cool and if WalMart shoppers get their hands on the device then it will sell less.

    What will you say about the Ipod? Certainly Apple has done well with the Ipod and while it has become less cool, there certainly is a HUGE market of people who would use it for the usability and not to look cool.

  2. Amit Chowdhry says:

    Thanks for the feedback, drew. Another reason I don’t believe the rumor is because Apple has not been selling iPhones at Wal*Mart yet. They’re selling accessories, but not the actual phone yet.

    If or when they do start selling the actual iPhone there, do you really think they’d give an exclusive product and price to them?

    Whenever Apple does their quarterly earnings they always report how many people have entered their stores. Why send customers away to Wal*Mart? Wal*Mart salesmen could care less if they sell any Apple products whereas Apple store employees are trained for selling them.

  3. James says:

    I think it would be a huge deal if Wal-Mart was able to sell the iPhone for Apple. It could open up a whole new channel for them.

    The $99 price, if true, would also stimulate a large increase in demand, and take sales away from other cellphones because of th ehuge appeal of the iPhone.

    Here’s an interesting article on the cell phone industry and how its morphing into the Internet space, led by Apple.

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