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.