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MacRumors
Jun 21, 2013, 11:58 PM
http://images.macrumors.com/im/macrumorsthreadlogo.gif (http://www.macrumors.com/2013/06/22/walmart-to-discount-iphone-5-by-60-beginning-saturday/)


http://images.macrumors.com/article-new/2012/11/iphone5.jpgOn Saturday, Walmart (http://www.walmart.com) will begin offering the iPhone 5 at a $60 discount (from $189 to $129) and the iPhone 4S at a $50 discount (from $89 to $39), reports Mashable (http://mashable.com/2013/06/22/walmart-iphone-5-price-drop/?utm_campaign=Feed%3A+Mashable+(Mashable)&utm_cid=Mash-Product-RSS-Pheedo-All-Partial&utm_medium=feed&utm_source=feedburner). The prices are permanent, available only in-store and require signing a new 2-year contract with Verizon, Sprint, or AT&T.We asked Walmart if the new pricing is temporary and were told that no, this is in fact the permanent price of the items. The new price is only available in Walmart stores and is not available online.

The price drop is also notable because Apple has historically limited the degree to which retailers can drop prices on its products. Although some retailers such as Walmart routinely discount items by $10, cutting the price by more than 30% (in the case of the iPhone 5) and nearly 70% (in the case of the iPhone 4S) is unprecedented.While it is not unusual to see seasonal sales (http://www.macrumors.com/2012/12/14/walmart-offering-iphone-5-for-127-fourth-generation-ipad-for-399/) at Walmart, it is odd to see a drastic, permanent price cuts on one of Apple's devices. iPhone pricing, however, has grown increasingly competitive in recent months, which has led to significant price drops at multiple retailers. Best Buy, for example, dropped (http://www.macrumors.com/2013/05/24/best-buy-to-discount-iphone-by-50-beginning-sunday/) the iPhone 5 price by $50 in May and recently reintroduced a successful trade-in program to allow iPhone 4/4S users to upgrade to the iPhone 5 (http://www.macrumors.com/2013/06/20/best-buy-to-relaunch-iphone-44s-trade-ins-for-free-iphone-5/) at no cost.

It is likely that stores are also aiming to get rid of existing inventory before the introduction of the iPhone 5S, which is expected to be announced in the fall. In recent weeks, news of Apple's upcoming refreshed iPhone has been picking up, and this morning, photos of the device (http://www.macrumors.com/2013/06/21/apples-iphone-5s-revealed-in-new-photos/) itself surfaced. The iPhone 5S is expected to come equipped with an improved camera, a dual LED rear flash, and a fingerprint sensor.

Walmart's discounted iPhone pricing is set to begin this Saturday, on June 22 and will last indefinitely.

Article Link: Walmart to Discount iPhone 5 By $60 Beginning Saturday (http://www.macrumors.com/2013/06/22/walmart-to-discount-iphone-5-by-60-beginning-saturday/)



lolkthxbai
Jun 22, 2013, 12:07 AM
ie. This is a new price that will be introduced in all stores around the same time.

So it begins.

Michael Scrip
Jun 22, 2013, 12:36 AM
It is likely that stores are also aiming to get rid of existing inventory before the introduction of the iPhone 5S, which is expected to be announced in the fall.

How much stock does Wal-Mart keep if the current inventory level would have an effect on the inventory months from now?

Today is June 21st. Let's say we won't see the iPhone 5S until August 21st.

Are you telling me that Wal-Mart has 2 months of inventory in their possession?

I can't imagine any retail store holding that much inventory... especially $650 iPhones. I would guess Wal-Mart orders iPhones fairly frequently instead of placing giant orders.

Thoughts? Does anyone here work at Wal-Mart or have information about their cell phone inventory?

Jamesesesesess
Jun 22, 2013, 12:51 AM
This would be a great opportunity for me to use one of the available upgrades on my family plan to sell it on eBay but I think I'll wait for the 5S since I'll be able to get a lot more.

photographypro
Jun 22, 2013, 03:20 AM
This is $70 off Apple's price, $60 off their former price.

Fry's also sells all memory sizes of the iPhone 5 for $60 off Apple's price.

Looks like Walmart only sells the 16GB version according to their website.


And Sprint will give you $100 off ANY model and free activation ($36) if you bring your number over from another carrier through July 18th.

Choices, choices!

Dominicanyor
Jun 22, 2013, 03:53 AM
Nice prices!!

Lancer
Jun 22, 2013, 06:24 AM
Wish the prices were better here in Australia.

At a leading phone company the min cost is $264 ($11pm on 24 month contract) plus the contract at $60pm so thats $1704 over 2 years for a 16Gb iPhone5.

praterkeith
Jun 22, 2013, 06:25 AM
I need T-Mobile to do this so that it'll make it easier for me to drop this crappy Sprint network!

ValSalva
Jun 22, 2013, 07:04 AM
Seems a little early to be clearing stocks to get ready for the next iPhone, whatever it will be named. That's probably three months away.

But it's a great price!

clickerman
Jun 22, 2013, 07:45 AM
Walmart is not clearing stock. Apple is trying to goose sales until their new products come out later this year.

kobyh15
Jun 22, 2013, 09:28 AM
walmart is not clearing stock. Apple is trying to goose sales until their new products come out later this year.

+1

sik08amg
Jun 22, 2013, 09:31 AM
Walmart is not clearing stock. Apple is trying to goose sales until their new products come out later this year.

Agreed, Walmart doesn't keep a large stock on iPhones, not in store at least. I would say apple is behind this.

scbn
Jun 22, 2013, 09:47 AM
This is not isolated to Wal-Mart. Best Buy is also putting iPhones on sales. This probably means Apple is pushing out the inventory of iPhone 5 by giving some kinds of discounts to the retailers.

Looking forward to an :apple: event in July for the new iPhones.

Ivabign
Jun 22, 2013, 10:21 AM
Another interesting Walmart wrinkle is that unlike most resellers, they do not charge sales tax on the subsidized portion of the phone. They will only charge tax on the $129.00. At least in California.

macduke
Jun 22, 2013, 10:38 AM
Looking forward to an :apple: event in July for the new iPhones.

I'm actually writing this for the second time as my iPhone 5 crashed when I was about to send it.

Long story short: iOS 7 is far from release, buggiest beta I've ever used, and to think that the new iPhone will be released next month is insanity. Apple always releases a new iPhone with new iOS software. They said autumn, they mean autumn. At this point even late September might be pushing it. I wouldn't rule out October based on my experience with iOS 7 thus far.

Trust me guys who haven't used iOS 7—you do not want them to release this to you next month on an iPhone 5S. You will do nothing but rage and complain if you use this software. It is not ready. It will not be ready soon. Yesterday was the first day of summer. Come back in three months.

iChrist
Jun 22, 2013, 11:21 AM
Wow. Steve fought long and hard to make Apple stores perfect, to display his creations in a way that sets them apart.

Now they are in Walmart bargain bin. WTF??

Schmitty11
Jun 22, 2013, 11:23 AM
So got my iPhone 5 for free. So yeah.

mscriv
Jun 22, 2013, 12:04 PM
Looks like Walmart only sells the 16GB version according to their website.

This is definitely the case. Wal Mart only carries the 16gb model.

hsotnicam8002
Jun 22, 2013, 12:12 PM
And this has to do with the ios blog, how? :confused:

RUGERMAN
Jun 22, 2013, 01:10 PM
So got my iPhone 5 for free. So yeah.

I traded in my 3gs to ATT for $100 - act fee of $36 and up graded to a 4 and got paid $64 to do it.

blitzer09x87
Jun 22, 2013, 01:11 PM
thanks but no thanks, i'll wait for the iphone 5s, but i'd say that this is a great move by apple, this would further affect the s4's dying sales.

maxosx
Jun 22, 2013, 01:25 PM
Well it looks like Apple's run of high priced, fat margined products is waning. Good news all around.

Sooner or later people wake up to the fact that although Apple makes good products, perhaps they're not "Magical & Revolutionary" after all.

As the "Steve Jobs Effect" wears off, reality sets in.

----------

Wow. Steve fought long and hard to make Apple stores perfect, to display his creations in a way that sets them apart.

Now they are in Walmart bargain bin. WTF??

Steve Jobs is the one who approached WalMart to place his products with this mass market low end retailer. He knew sooner or later there was no avoiding it.

gotluck
Jun 22, 2013, 01:50 PM
Well I'm all for more appropriately priced apple products. Now if they could extend this rationale to the Mac line we're really talking.

alent1234
Jun 22, 2013, 02:00 PM
Wow. Steve fought long and hard to make Apple stores perfect, to display his creations in a way that sets them apart.

Now they are in Walmart bargain bin. WTF??


Wal Mary has been selling apple products for almost a decade

Silver Pegasus
Jun 22, 2013, 02:20 PM
Although Walmart won't stock anywhere near levels that would last 2 months, they are likely to have a stock commitment with Apple.

Say the rumours for 2 new phones Flagship and a cheaper version are true then the iPhone 4S and 5 will be discontinued. Everyone including Apple themselves will be wanting rid of what they are committed to with manufacturers, part suppliers etc. This has been less of a problem in the past but this launch it will be different.

beaniemyman
Jun 22, 2013, 02:24 PM
looks like the iphone 5 is not selling well, poor apple. GS4 and the htc one have really affected the sales

Gigaman
Jun 22, 2013, 04:37 PM
Well it looks like Apple's run of high priced, fat margined products is waning. Good news all around.

Sooner or later people wake up to the fact that although Apple makes good products, perhaps they're not "Magical & Revolutionary" after all.

As the "Steve Jobs Effect" wears off, reality sets in.

----------




Did you seriously think people used the literal meaning of the word magical to describe their products or something? And you must be living in another world if you don't think several of these products have revolutionized markets significantly (more than many of their competitors for sure).

Or what, do you really think Samsung's new toy is really "the next big thing"?

GenesisST
Jun 22, 2013, 04:43 PM
Wow. Steve fought long and hard to make Apple stores perfect, to display his creations in a way that sets them apart.

Now they are in Walmart bargain bin. WTF??

Holy high horses, Batman!

damitssam
Jun 22, 2013, 04:45 PM
Iphone as a BMW. Give me a ****ing break. :rolleyes::rolleyes:

Robert.Walter
Jun 22, 2013, 05:40 PM
Wow. Steve fought long and hard to make Apple stores perfect, to display his creations in a way that sets them apart.

Now they are in Walmart bargain bin. WTF??

Until Apple has stores throughout Flyover, America, Walmart will remain the only game in town for many folks.

----------

This is definitely the case. Wal Mart only carries the 16gb model.

I can't imagine how anybody can get by with 16Gb these days, even 32 seems a bit claustrophobic.

----------

I traded in my 3gs to ATT for $100 - act fee of $36 and up graded to a 4 and got paid $64 to do it.

If one can get by with a bit slower device, a bit weaker camera (5Mp, no panorama), no Siri, no mirroring to an Apple TV, then a 4 might be adequate, but I would recommend a 4s if one can afford the extra cost, or to wait a couple months until the price of the 4s falls to today's 4 range. And for God's sake try to get a 32 Gb memory.

----------

Although Walmart won't stock anywhere near levels that would last 2 months, they are likely to have a stock commitment with Apple.

Say the rumours for 2 new phones Flagship and a cheaper version are true then the iPhone 4S and 5 will be discontinued. Everyone including Apple themselves will be wanting rid of what they are committed to with manufacturers, part suppliers etc. This has been less of a problem in the past but this launch it will be different.

My guess is Walmart committed to move a certain number of units in order to get a certain purchase price rebate from apple. If they miss the commitment, their rebate will be reduced. I also expect Walmart has a counter commitment from apple to reduce wholesale price according to market conditions.

----------

looks like the iphone 5 is not selling well, poor apple. GS4 and the htc one have really affected the sales

Is this true or just troll bait?

jonnysods
Jun 22, 2013, 07:25 PM
Must be that time of year again. New model refresh coming soon!!

lolkthxbai
Jun 22, 2013, 08:49 PM
Although Walmart won't stock anywhere near levels that would last 2 months, they are likely to have a stock commitment with Apple.

Say the rumours for 2 new phones Flagship and a cheaper version are true then the iPhone 4S and 5 will be discontinued. Everyone including Apple themselves will be wanting rid of what they are committed to with manufacturers, part suppliers etc. This has been less of a problem in the past but this launch it will be different.

I don't think they'd get rid of the iPhone 5. Isn't expected starting price line up $199 iPhone 5S, $99 iPhone 5, $0 iPhone (cheaper version)?

bag of kittens
Jun 22, 2013, 09:00 PM
looks like the iphone 5 is not selling well, poor apple. GS4 and the htc one have really affected the sales

Not really. Samsung cut orders of S4 components this week. After a good month, S4 sales have really fallen off.

mj1108
Jun 23, 2013, 02:09 AM
Walmart is not clearing stock. Apple is trying to goose sales until their new products come out later this year.

Bingo.

kodeman53
Jun 23, 2013, 04:01 AM
Is this true or just troll bait?

It's troll bait.

Snowshiro
Jun 23, 2013, 07:26 AM
And in Japan, the iPhone 5 is still free, as it has been since the day of launch. Oh and they give you $100 (10,000 yen) cashback as well. So basically it's minus $100.

Amazes me how America seems to put up with this nonsense.

bushman4
Jun 23, 2013, 11:47 AM
AT&T has already beat this deal with the $99 + free activation For the IPhone 5. 16gb
There must be plenty of inventory around and a new model coming in a couple of months
Activation is worth $36 so iin reality the price is
$64

bag of kittens
Jun 23, 2013, 12:45 PM
AT&T has already beat this deal with the $99 + free activation For the IPhone 5. 16gb
There must be plenty of inventory around and a new model coming in a couple of months
Activation is worth $36 so iin reality the price is
$64

Does that require a trade-in?

Mebsat
Jun 23, 2013, 12:48 PM
Although Walmart won't stock anywhere near levels that would last 2 months, they are likely to have a stock commitment with Apple.

Say the rumours for 2 new phones Flagship and a cheaper version are true then the iPhone 4S and 5 will be discontinued. Everyone including Apple themselves will be wanting rid of what they are committed to with manufacturers, part suppliers etc. This has been less of a problem in the past but this launch it will be different.

This is an interesting take on things. It would explain the departure from Apple's typical hold on MAP.

However, I am skeptical that they would jettison the prior products, due to worldwide supply chain issues. No way they could ramp a whole new line and ditch everything in production and not destroy their margins. We also would be seeing a lot more parts leaks.

On the other hand, I just don't see how Apple can tolerate the flagship iPhone 5 selling for $129 for the whole summer. Apple is definitely participating with Wal-Mart and BestBuy. I would guess this really means the 5S is coming sooner than expected. Special event in mid July, shipping by July 31. Any more than 3-4 weeks of bargain prices on the iPhone 5 just seems like marketing suicide.

This all makes me think you will be able to get an iPhone 5S running iOS 6. (Some people are going to really like that, and buying the 5 on sale or waiting for the 5S will be even more nerve-wracking, I guess)

cdmoore74
Jun 23, 2013, 12:57 PM
thanks but no thanks, i'll wait for the iphone 5s, but i'd say that this is a great move by apple, this would further affect the s4's dying sales.

Let's not get it twisted. S4 sales are dying because there are better Android choices in 2013. Not because the iPhone is selling like hotcakes. Do we really believe a iPhone 5s is going to out sale the 5? Expect this price for the 5s by March 2014.
People forget that Apple has to battle Android; not just Samsung.

theBB
Jun 23, 2013, 12:58 PM
I would guess this really means the 5S is coming sooner than expected. Special event in mid July, shipping by July 31.
I doubt that. iOS7 is unlikely to be ready for final release by then and new hardware does not make sense before the OS update. I would not expect 5S before Labor Day.

bag of kittens
Jun 23, 2013, 01:06 PM
Let's not get it twisted. S4 sales are dying because there are better Android choices in 2013. Not because the iPhone is selling like hotcakes. Do we really believe a iPhone 5s is going to out sale the 5? Expect this price for the 5s by March 2014.
People forget that Apple has to battle Android; not just Samsung.

Will the iPhone 5s outsell the iPhone 5?

Yes.

Here is why - look at the install base from the iPhone 4 to iPhone 4s. It made a huge jump from 4 to 4s.

There is a huge number of 4s owners that are JUST NOW becoming eligible for their upgrades at AT&T, Verizon, Sprint, etc, who are waiting for the 5s to be available. Most of the iPhone 5 owners were the ones coming off their iPhone 4 contract.

bassfingers
Jun 23, 2013, 01:18 PM
Phone activations at Walmart. Disaster waiting to happen don't you think?

imwoblin
Jun 23, 2013, 01:43 PM
It's interesting to see all the Apple approved retailers following each other discounting Apple's flagship iPhone 5. I've never seen the discount window on the high end iPhone like it is right now. The big question is this. How much of an upgrade will the 5S be over the 5? If its just a processor and camera bump, the 5 for a little over 100 bucks new is a smoking deal for us 4S- ers who are ready to upgrade.

cdmoore74
Jun 23, 2013, 01:50 PM
Will the iPhone 5s outsell the iPhone 5?

Yes.

Here is why - look at the install base from the iPhone 4 to iPhone 4s. It made a huge jump from 4 to 4s.

There is a huge number of 4s owners that are JUST NOW becoming eligible for their upgrades at AT&T, Verizon, Sprint, etc, who are waiting for the 5s to be available. Most of the iPhone 5 owners were the ones coming off their iPhone 4 contract.

I think someone forgot that the iphone 4 and iphone 4s out sale the more expensive iphone 5. There are plenty of people that just want a cheap iphone. Hence the reason for these cheap iphone rumors. It's a mistake for Apple to cater to these people.
And can someone explain why Apple builds all these Apple stores to only get undercut by Walmart and BestBuy? It's not like Apple sales their laptops and desktops in huge quantity. Even microcenter has the ipad mini for $299.

Michael Scrip
Jun 23, 2013, 02:09 PM
I think someone forgot that the iphone 4 and iphone 4s out sale the more expensive iphone 5. There are plenty of people that just want a cheap iphone. Hence the reason for these cheap iphone rumors. It's a mistake for Apple to cater to these people.

Apple sold a total of 37 million iPhones last quarter.

Do you know that for a fact that the older iPhone 4 and 4S are outselling the iPhone 5?


And can someone explain why Apple builds all these Apple stores to only get undercut by Walmart and BestBuy? It's not like Apple sales their laptops and desktops in huge quantity. Even microcenter has the ipad mini for $299.

Can you take your Mac to Wal-Mart to get fixed? Is there anyone at Wal-Mart to talk to if you have questions?

I think Best Buy has a guy there part time... but it's not the same level of service.

And there's your answer to why Apple has their own stores... service.

And in case you've forgotten... Apple Stores have the highest revenue per square foot. So this supposed "undercutting" by Wal-Mart isn't affecting that.

KRD
Jun 23, 2013, 02:10 PM
Does this new discount scheme for iphone 5 hold good only for 16gb models or is it applicable to other models also?
Also, what about the factory unlcoked phones? Are they available on discount too?

bag of kittens
Jun 23, 2013, 02:18 PM
Apple sold a total of 37 million iPhones last quarter.

Do you know that for a fact that the older iPhone 4 and 4S are outselling the iPhone 5?

He doesn't know. Apple doesn't release figures on how the iPhone sales are broken down.

cdmoore74
Jun 23, 2013, 02:33 PM
Apple sold a total of 37 million iPhones last quarter.

Do you know that for a fact that the older iPhone 4 and 4S are outselling the iPhone 5?



Can you take your Mac to Wal-Mart to get fixed? Is there anyone at Wal-Mart to talk to if you have questions?

I think Best Buy has a guy there part time... but it's not the same level of service.

And there's your answer to why Apple has their own stores... service.

And in case you've forgotten... Apple Stores have the highest revenue per square foot. So this supposed "undercutting" by Wal-Mart isn't affecting that.

1. Let's look at the facts. Apple would have promoted left and right that the iPhone 5 outsold the iPhone 4s; wouldn't you. Instead they have to combine all the sales to make it look decent. The article below was from Dec 2012. The 4S was outselling the iPhone 5 6 months ago while in it's prime. Show me one article that claims that the iPhone 5 outsold the previous gen.

http://bgr.com/2012/12/14/iphone-5-sales-iphone-4s/

2. So your telling me that Apple stores are now glorified repair and exchange centers? Basically your saying Apple products are not reliable and/or people are too dumb to operate Apple gear.


It is the same blindness that has Apple stocks down and why Tim Cook got his deal re-evaluated. Too many people still kissing Apple's feet. Next year January is going to be worst for the iPhone.

bag of kittens
Jun 23, 2013, 02:50 PM
1. Let's look at the facts. Apple would have promoted left and right that the iPhone 5 outsold the iPhone 4s; wouldn't you. Instead they have to combine all the sales to make it look decent. The article below was from Dec 2012. The 4S was outselling the iPhone 5 6 months ago while in it's prime. Show me one article that claims that the iPhone 5 outsold the previous gen.

http://bgr.com/2012/12/14/iphone-5-sales-iphone-4s/

2. So your telling me that Apple stores are now glorified repair and exchange centers? Basically your saying Apple products are not reliable and/or people are too dumb to operate Apple gear.


It is the same blindness that has Apple stocks down and why Tim Cook got his deal re-evaluated. Too many people still kissing Apple's feet. Next year January is going to be worst for the iPhone.

That website you linked is not "fact." An analyst from UBS said he reduced his earnings estimate based upon "Chinese sources." Here are actual facts:

The iPhone 4 sold roughly 1.7 million in it's first weekend.

The iPhone 4s sold roughly 4.0 million in it's first weekend.

The iPhone 5 sold roughly 5.0 million in it's first weekend.

Considering all those 4s owners that have been locked into their contracts until now, and are becoming eligible for upgrade starting this summer, I would say the demand for the 5s will be huge.

Michael Scrip
Jun 23, 2013, 03:16 PM
1. Let's look at the facts. Apple would have promoted left and right that the iPhone 5 outsold the iPhone 4s; wouldn't you. Instead they have to combine all the sales to make it look decent. The article below was from Dec 2012. The 4S was outselling the iPhone 5 6 months ago while in it's prime. Show me one article that claims that the iPhone 5 outsold the previous gen.

http://bgr.com/2012/12/14/iphone-5-sales-iphone-4s/



What facts?

Apple has never broken down the sales of each individual model.

Plus... that article from December cites an analyst who said Apple would only produce 25 million iPhones in the 1st quarter.

But looking back at the last two quarters... Apple sold 47 million and 37 million iPhone respectively. WTF was that analyst smoking?

Yes that's all iPhones lumped together collectively... because that's what Apple reports.

There is no way of knowing which iPhone models are selling the most... and that article doesn't give ANY facts on the matter either.

Try not to listen to analysts...



2. So your telling me that Apple stores are now glorified repair and exchange centers? Basically your saying Apple products are not reliable and/or people are too dumb to operate Apple gear.

It is the same blindness that has Apple stocks down and why Tim Cook got his deal re-evaluated. Too many people still kissing Apple's feet. Next year January is going to be worst for the iPhone.

Apple Stores are showrooms first... and service centers second.

Yes... service is important no matter the manufacturer. Apple offers great service... but that doesn't mean all they do is repair and exchange.

Mebsat
Jun 23, 2013, 03:32 PM
I doubt that. iOS7 is unlikely to be ready for final release by then and new hardware does not make sense before the OS update. I would not expect 5S before Labor Day.

I kind of doubt it too, but I still can't believe Apple is going to let a variety of outlets sell the iPhone 5 for $129 for 3+ months.

I guess it comes down to if you believe in the fingerprint sensor.

If you do, it seems like they won't release the 5S until iOS 7 comes out.
(Apple said "This Fall").

If no fingerprint sensor, then the 5S could come out with an iOS 6 update, if there is a sensor, it seems like iOS 7 will be required.
I don't believe they will ship hardware with non-working features.

maxosx
Jun 23, 2013, 03:35 PM
Did you seriously think people used the literal meaning of the word magical to describe their products or something? And you must be living in another world if you don't think several of these products have revolutionized markets significantly (more than many of their competitors for sure).

Or what, do you really think Samsung's new toy is really "the next big thing"?
Oops, must've stepped on someones toes.

My post didn't say anything about Samsung. Bringing them up to make a point is an very old, tired, useless, tactic.

imwoblin
Jun 23, 2013, 04:01 PM
It gets even better. AT&T is now running a 50% off promotion which includes iPhones. You can now get a new iPhone 5 for $99 w/ new contract!

Michael Scrip
Jun 23, 2013, 04:03 PM
I kind of doubt it too, but I still can't believe Apple is going to let a variety of outlets sell the iPhone 5 for $129 for 3+ months.

Does Apple have a minimum advertised price? Or should they even care? Apple is still getting $649 for each iPhone 5 that these stores order from them. The price cut won't affect Apple's bottom line.

It's the stores who are taking the cut.

But AT&T makes their money on the 2-year contract anyway... so that $100 they're losing up front is a drop in the bucket.

And Wal-Mart only makes pennies from these iPhone sales anyway... they just want to get you in the store so you can buy other stuff.

Knowing that Apple and these retailers have a relationship... these price cuts would be authorized by Apple, right?

bag of kittens
Jun 23, 2013, 04:23 PM
Does Apple have a minimum advertised price? Or should they even care? Apple is still getting $649 for each iPhone 5 that these stores order from them. The price cut won't affect Apple's bottom line.

It's the stores who are taking the cut.

But AT&T makes their money on the 2-year contract anyway... so that $100 they're losing up front is a drop in the bucket.

And Wal-Mart only makes pennies from these iPhone sales anyway... they just want to get you in the store so you can buy other stuff.

Knowing that Apple and these retailers have a relationship... these price cuts would be authorized by Apple, right?

I'm not sure if Apple would be shipping the units to Walmart at a pre-arranged discount, or if Walmart bought the units at full price from Apple.

To be honest, I bet nobody on the MacRumors board knows this. If they claim to know, they are probably lying.

I also think as smartphones in general become commoditized in the future, Apple will look at this from a long-term view and sacrifice a little bit on profits in order to get new customers hooked on the Apple eco-system.

I think it's safe to assume that parabolic growth in smartphones is sort of done (evidenced by lagging S4 orders), and there will be other avenues for new growth.

Michael Scrip
Jun 23, 2013, 04:38 PM
I'm not sure if Apple would be shipping the units to Walmart at a pre-arranged discount, or if Walmart bought the units at full price from Apple.

To be honest, I bet nobody on the MacRumors board knows this. If they claim to know, they are probably lying.

I also think as smartphones in general become commoditized in the future, Apple will look at this from a long-term view and sacrifice a little bit on profits in order to get new customers hooked on the Apple eco-system.

I think it's safe to assume that parabolic growth in smartphones is sort of done (evidenced by lagging S4 orders), and there will be other avenues for new growth.

Good points.

I was under the impression that Apple sells the iPhone to retailers at full price... and then the retailers do whatever they need to do to sell it to a consumer. If there were any volume discounts... someone would have leaked that by now.

Apple *could* be taking a cut for the iPhone 5 this summer... but I really doubt it. I refuse to believe that Apple has a ton of iPhones and they're scared nobody wants them.

I don't think Apple is being forced into a "fire sale" situation :D

bag of kittens
Jun 23, 2013, 05:40 PM
I don't think Apple is being forced into a "fire sale" situation :D

I don't think so either :cool:

alent1234
Jun 23, 2013, 08:46 PM
Does Apple have a minimum advertised price? Or should they even care? Apple is still getting $649 for each iPhone 5 that these stores order from them. The price cut won't affect Apple's bottom line.

It's the stores who are taking the cut.

But AT&T makes their money on the 2-year contract anyway... so that $100 they're losing up front is a drop in the bucket.

And Wal-Mart only makes pennies from these iPhone sales anyway... they just want to get you in the store so you can buy other stuff.

Knowing that Apple and these retailers have a relationship... these price cuts would be authorized by Apple, right?

It will when the retailers will commit to buying less iPhones in the future

Why buy them if you have to lose money on the discounting?

sectime
Jun 23, 2013, 09:20 PM
Iphone as a BMW. Give me a ****ing break. :rolleyes::rolleyes:
Both are imported, overpriced, scary to own without a warranty. Quite similar:rolleyes:

Terrin
Jun 23, 2013, 09:50 PM
I need T-Mobile to do this so that it'll make it easier for me to drop this crappy Sprint network!

I am confused. T-Mobile charges $149 upfront for an iPhone 5 ($20 more then on T-MObile currently). If you have an iPhone 4 or 4S, it will give you one for 0 down. You then pay around $20 dollars on top of your monthly payment for 24 months.

With T-Mobile you can get unlimited everything for as low as $50 a month, plus the $20 phone payment. This is a no contract plan. With Walmart you have to sign up for a two year plan on Sprint, AT&T or Verizon. Without discounts, unlimited plans on Sprint, Verizon, and AT&T are around $130 a month (AT&T and Verizon don't even give you unlimited data, and Sprint's data network is slow).

T-Mobile's plans are still a better deal providing you live in an area where the coverage is good. T-Mobile and AT&T recently ranked as having the fastest data speeds.

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looks like the iphone 5 is not selling well, poor apple. GS4 and the htc one have really affected the sales

Or perhaps Apple wants to move as much inventory as possible, like every other year before, to get ready for a new product. Retailers have always offered deals on the most current model phone as the time for a new one approaches. Compared to the iPhone and HTC One, the GS4 stinks. Especially considering, they offer a lower quality version to the US market and it is going to start offering multiple versions of phones all cheaper quality under the GS4 brand.

It is not as if Apple is giving up margins by lowering he price, as by this point in time the cost of production for a nearly year old phone is less then it was a launch.

Michael Scrip
Jun 23, 2013, 09:51 PM
It will when the retailers will commit to buying less iPhones in the future

Why buy them if you have to lose money on the discounting?

Yeah... this raises more questions than it answers.

What's funny is... 3 out of 4 smartphones sold at AT&T are already iPhones. Clearly AT&T has no trouble moving iPhones.

I find this whole situation odd.

Terrin
Jun 23, 2013, 09:58 PM
Good points.

I was under the impression that Apple sells the iPhone to retailers at full price... and then the retailers do whatever they need to do to sell it to a consumer. If there were any volume discounts... someone would have leaked that by now.

Apple *could* be taking a cut for the iPhone 5 this summer... but I really doubt it. I refuse to believe that Apple has a ton of iPhones and they're scared nobody wants them.

I don't think Apple is being forced into a "fire sale" situation :D

Apple sells the phone to retailers at full wholesale price, not retail price. If Apple charges $649 for a 16 GB iPhone 5, retailers are paying less. Otherwise, stores like Best Buy or Amazon would not make a profit by selling them. Moreover, Apple occasionally lowers its wholesale price to clear inventory. It also controls when retailers can lower the price.

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It will when the retailers will commit to buying less iPhones in the future

Why buy them if you have to lose money on the discounting?

Retailers do not lose money on discounting. They pay less then retail price. Further, often times carriers offer spiffs (e.g. a bounty ) for selling a phone.

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I think it's safe to assume that parabolic growth in smartphones is sort of done (evidenced by lagging S4 orders), and there will be other avenues for new growth.

If you read the reviews, the S4 is not that great a phone. Moreover, it ships different versions under the same name. The US gets the weakest version.

elvahsiao
Jun 23, 2013, 10:39 PM
Really? That's really a big news.I would like to buy an Iphone 5 for my father! This might be a good chance. While I am a little afraid that Apple will send out their cheaper Iphone series this September. so I WONDER whether I should buy at this time.

Michael Scrip
Jun 23, 2013, 10:51 PM
Apple sells the phone to retailers at full wholesale price, not retail price. If Apple charges $649 for a 16 GB iPhone 5, retailers are paying less. Otherwise, stores like Best Buy or Amazon would not make a profit by selling them. Moreover, Apple occasionally lowers its wholesale price to clear inventory. It also controls when retailers can lower the price.

Ah, yeah. Retail vs wholesale... my bad. Any idea what Best Buy pays for the iPhone?

Then again... Best Buy isn't really selling the phone... they are resellers for the carriers, right? So how does that work?

If Best Buy sells a Sony DVD player... it's just between Sony and Best Buy.

What happens when Best Buy sells an Apple iPhone for Verizon? Now there's 3 hands in the cookie jar.

Terrin
Jun 24, 2013, 07:41 AM
How much stock does Wal-Mart keep if the current inventory level would have an effect on the inventory months from now?

Today is June 21st. Let's say we won't see the iPhone 5S until August 21st.

Are you telling me that Wal-Mart has 2 months of inventory in their possession?

I can't imagine any retail store holding that much inventory... especially $650 iPhones. I would guess Wal-Mart orders iPhones fairly frequently instead of placing giant orders.

Thoughts? Does anyone here work at Wal-Mart or have information about their cell phone inventory?


It has nothing to do with Walmart's inventory. It has to do with Apple's inventory. It is common for Apple to push to move product by lowering prices before a new product launch. Some people need an incentive to buy a older model knowing newer ones are coming.

Terrin
Jun 24, 2013, 07:51 AM
IAnd can someone explain why Apple builds all these Apple stores to only get undercut by Walmart and BestBuy? It's not like Apple sales their laptops and desktops in huge quantity. Even microcenter has the ipad mini for $299.

Sure it is common practice that a manufacturer cannot undercut retail partners in price. If Apple undercut others on price, the other retailers might not want to sell Apple's products.

Terrin
Jun 24, 2013, 08:06 AM
Ah, yeah. Retail vs wholesale... my bad. Any idea what Best Buy pays for the iPhone?

Then again... Best Buy isn't really selling the phone... they are resellers for the carriers, right? So how does that work?

If Best Buy sells a Sony DVD player... it's just between Sony and Best Buy.

What happens when Best Buy sells an Apple iPhone for Verizon? Now there's 3 hands in the cookie jar.


Phone sales are complicated. I worked at Best Buy demoing Apple products years ago (before the iPhone). The mark up on electronics is small. For an entry level iMac Best Buy made $50 to a $100 dollars. Best Buy really makes the money from up selling things like its own extended warranty service and higher margin peripherals.

I suspect the difference between wholesale and resale is small for the iPhone. Probably the same range as entry level Macs. However, Best Buy is probably being paid something from the carriers like $50 to sell a phone on top of the profit from Apple. Further, some phone manufacturers like Samsung will pay a spiff to a salesperson to push its phones.

rickey603
Jun 24, 2013, 08:50 AM
hey all. long time reader, first time poster here. thought i'd put some things to rest:

i work for a walmart in NY in the electronics department. i sometimes deal with the contract phones and have access to the telxon machine that tells me inventory and % mark-up. iphones (which walmart sells outright for $499, $599, and $699 for the 4, 4s, and 5 respectively) are marked up somewhere in the 5-7% range on the outright price. galaxys are marked up 20-30% on the outright price ($649 for the s3 and i believe $699 on the s4, we pretty much just got those in so i'm not as familiar). hardly anyone buys these phones outright though.

when it comes to activations through wireless carriers, the stores see payment on the back end from the carriers. for instance, my store does verizon and t-mobile activations. we get $600 on the back end from verizon per iphone activation and $200-$300 for any android/basic phone activation. all electronics stores that do phone activations are under this payment deal as well.

i can also tell you that walmart is not swimming in iphone inventory either. we get a handful in at a time and really never have more than 10-15 of any model in stock. our regional distribution warehouse also does not keep much stock of these either.

Greg.
Jun 24, 2013, 09:14 AM
Lol at Americans being excited at this. For us pretty much every phone is free with a contract, so this appears a terrible deal :rolleyes:

millerboy814
Jun 24, 2013, 03:43 PM
what if i purchased an iphone before this promo (less than a week before) and i paid 190$ and then they run this promo, can i go back and will they give me the price difference?

Michael Scrip
Jun 24, 2013, 04:53 PM
It has nothing to do with Walmart's inventory. It has to do with Apple's inventory. It is common for Apple to push to move product by lowering prices before a new product launch. Some people need an incentive to buy a older model knowing newer ones are coming.

I don't understand how it has to do with Apple's inventory.

Apple tells their factories how many iPhones to make. They make hundreds of thousands of iPhones every day. And they sell that many every day too.

Basically every iPhone that gets produced will find an owner almost immediately.

I don't think Apple is saying "crap... we've got too many iPhones... slash the price to get rid of them quick!"

Apple has no problem selling iPhones... so they shouldn't have a bunch of unsold iPhones piling up in a warehouse somewhere. That's why I'm having a hard time believing it's a problem with Apple's inventory.

If this summer promotion is just a way to sell additional iPhones by offering a discount... fine... that makes sense.

But I don't believe Apple is offering these discounts because they are overrun with unsold inventory.

NoMoreSony
Jun 25, 2013, 12:49 AM
Rule #1: If you see yet another article about another big retailer price cut for iPhone - it just means that the end of the current sales quarter is very close.

Just refresh your memory -

http://forums.macrumors.com/showthread.php?t=1504961
Best Buy Offering $50 Off of All iPhone 5 Models [Update: Now With $100 Gift Card for Rewards Zone Members]

http://www.macnewsworld.com/story/76873.html
Walmart Cuts Apple Device Prices to the Core

Apple constantly subsidizes retail chains at the end of the quarter if sales numbers are weak.

TypeMRT
Jun 25, 2013, 05:02 PM
what if i purchased an iphone before this promo (less than a week before) and i paid 190$ and then they run this promo, can i go back and will they give me the price difference?

I did the same thing. Now I'm headed back to the AT&T store to find out if they'll do an easy price match for a refund or a difficult return/rebuy.

Gigaman
Jun 25, 2013, 11:57 PM
Oops, must've stepped on someones toes.

My post didn't say anything about Samsung. Bringing them up to make a point is an very old, tired, useless, tactic.

Where did I claim you posted about Samsung?? What, did I step on your toes by mentioning them? Done here.

davidgrimm
Jun 26, 2013, 12:12 AM
This is the problem with Apple's refresh system. Nothing has been announced, but EVERYONE is already waiting for the next phone and assuming it will be out early fall. So if your phone is getting old in the spring, you'll just wait for the next new model. You'd almost be stupid to purchase an iPhone now. Just wait and you'll have the best one soon. So sales lag in the summer. Why buy anything now. Cheaper, faster, and newer will be here soon.

kaielement
Jun 26, 2013, 12:51 AM
Another interesting Walmart wrinkle is that unlike most resellers, they do not charge sales tax on the subsidized portion of the phone. They will only charge tax on the $129.00. At least in California.

They still have to pay the tax according to state law they just pay it on the back end and hope to make money off of the accessories which are way over priced so that they make more money. In the end if you are smart you will find better deals on cases online. As to the law itself in California it sucks ass I have to deal with it all the time I work for a company that sells cell phones and not saying we are any better of a company then wal-mart, but I hate those customers who flip out because of the tax and try to argue that wal-mart doesn't charge the tax so we shouldn't. If you really care that much go buy your phone there because at the end of the day I don't make commission. Just my thoughts. Whatever the new iPhone ends up being it is going to be quality.

landsoyptl
Jun 27, 2013, 05:14 AM
means the upcoming of 5S SOON ;)

praterkeith
Jun 28, 2013, 07:34 PM
5s. Boom.