The $99 Walmart-iPhone Rumor Seems Off

Posted Dec 4, 2008

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.