$99 Wal-Mart iPhone Seems Unlikely

[MacRumors]

http://www.macrumors.com/images/macrumorsthreadlogo.gif (http://www.macrumors.com/2008/12/08/99-wal-mart-iphone-seems-unlikely/)


http://images.macrumors.com/article/2008/12/08/050834-photo_425.jpg


Last week, Boy Genius Report cited an unconfirmed source (http://www.macrumors.com/2008/12/04/wal-mart-to-sell-99-4gb-iphone/) that Wal-Mart may begin selling a 4GB iPhone for only $99. Based on available Wal-Mart training materials and advertising (pictured above), however, it seems that this rumor is unlikely. The advertising shown only lists 8GB iPhones for sale at $197, without any hints of a cheaper model. The iPhone will go on sale at Wal-Mart beginning on December 28th.

This information also correlates with MacBlogz' AT&T sources (http://www.macblogz.com/2008/12/06/sources-say-4gb-iphone-is-not-happening-just-a-rumor/) who claim the 4GB rumors were untrue.


Article Link: $99 Wal-Mart iPhone Seems Unlikely (http://www.macrumors.com/2008/12/08/99-wal-mart-iphone-seems-unlikely/)

[talkingfuture]

This seems sensible for now. Maybe they'll up the capacities at a later date and then the 8GB model can become the "cheap" model.

[SimonTheSoundMa]

Still, not the free or £50 cost of the handset we enjoy here in the UK.

[houdinize]

Sure is interesting to see the (minimal) price cut. I wonder why Apple would allow it to be sold cheaper somewhere other than at Apple. I have heard stories of Walmart requiring certain prices for items, to the point that cereal manufacturers shrink the size of their boxes to keep them inside Walmart's price window. These are scary times we live in. Hopefully the day these go on sale Apple trains Walmart's staff on crowd control and nobody gets trampled. "iPhone 3G, now in blood red . . . "

[alexbates]

This is exactly what I thought would happen. Apple would never start selling the 4GB iPhone again.

[SimonTheSoundMa]

Sure is interesting to see the (minimal) price cut. I wonder why Apple would allow it to be sold cheaper somewhere other than at Apple.

That is called price fixing, and is against the law in almost all civilised countries.

[emulator]

all the fanboys can relax now; the wal*mart crowd won't have them. like they would have purchased the at $99 with the way overpriced service.

[Chiefthinker]

all the fanboys can relax now; the wal*mart crowd won't have them. like they would have purchased the at $99 with the way overpriced service.

CNBC reported this morning that Walmart is, in fact, going to be selling the iPhone before the end of the year. Here are a couple of major news outlets saying the same thing. Plus the stock is up $2.50 in premarket trading today :)

Wal-Mart to sell $99 iPhones in late Dec -NY Post
87 minutes ago - Xinhua Financial News


As of 12:00 AM ET 12/5/08
A cheaper version of Apple Inc's iPhone will be sold at Wal-Mart Stores Inc for $99 later this month, the New York Post said.

Two models of the popular device will hit shelves at the U.S. retail giant, the paper said, citing employees at several stores.

Employees also told San Jose-based Mercury News that the $99 iPhones would be 4-gigabyte models, and that Wal-Mart was attempting a pre-Christmas launch.

The iPhone went on sale starting July 11 at $199 for the model with 8 gigabytes of storage and $299 for the 16-gigabyte version.

However, iPhone users need to sign up with data service provider AT&T Inc for a plan that costs at least $30 a month for unlimited Web access and another $5 for 200 text messages or $20 for unlimited texting.

Wal-Mart has been gaining market share and clout in the U.S. recession as cash-strapped shoppers seek out its low prices.

Neither Apple nor Wal-Mart were immediately available to comment.

DOW JONES NEWSWIRES

Apple Inc. (AAPL) plans to start selling the iPhone at Wal-Mart (WMT) stores this month, according to several reports.
The San Jose Mercury News first reported Friday that the iPhone would be in stock at San Francisco Bay-area stores by the last week of December, and possibly before Christmas, citing managers and employees at several stores.
The stores had been holding meetings with employees to tell them the details of the release, the newspaper reported.
An AT&T Inc. (T) representative told cell phone department manager Kim Nguyen at a Wal-Mart in Milpitas, Calif., that the store would get a 4GB model of the iPhone, the San Jose Mercury News reported.
A 4G model hasn't been announced by Apple, but several blogs and analysts have said that Apple might offer a discounted model of the iPhone to stay competitive with low-end devices.
Bloomberg confirmed the report Sunday, citing four unnamed employees at four different California stores.
The employees, contacted by phone, said they are being trained on how to sell the device, the news agency reported on its Web site.
However, the employees haven't been told the price of the iPhones or which versions Wal-Mart will sell, it said.

[Sirmausalot]

That is called price fixing, and is against the law in almost all civilised countries.

Price fixing is when different companies COLLUDE to fix a price for a similar or the same product. For example, if Microsoft, Apple, and the Linux folks sat down and said, we should all ell our operating systems for $500, that's price fixing.

However, a manufacturer does have control of how, and at what price, their products are sold at. So I think Apple can dictate prices to their partners, or simply not sell to them. Free market.

[Trip.Tucker]

Good, would have been a dumb direction regardless.

[alexbates]

Price fixing is when different companies COLLUDE to fix a price for a similar or the same product. For example, if Microsoft, Apple, and the Linux folks sat down and said, we should all ell our operating systems for $500, that's price fixing.

However, a manufacturer does have control of how, and at what price, their products are sold at. So I think Apple can dictate prices to their partners, or simply not sell to them. Free market.

Yes, In this case, there are not different companies selling different products, so I do not think it is price fixing.

I think that now, Apple does have some control of what price their products are sold at. At a different stores it might not be exactly $199 for an iPhone, but it is within $10 of that.

[Superman07]

So do we take the NYP story to mean a $99 is a done deal despite the thread topic/report?

[frumpy16]

Looks like it's confirmed...

http://www.bloomberg.com/apps/news?pid=20601103&sid=a4YIU21gLaSY&refer=us

[talkingfuture]

Looks like it's confirmed...

http://www.bloomberg.com/apps/news?pid=20601103&sid=a4YIU21gLaSY&refer=us

Looks as though the Walmart sales are confirmed but the 4GB is still a rumour to me.

[DakotaGuy]

CNBC reported this morning that Walmart is, in fact, going to be selling the iPhone before the end of the year. Here are a couple of major news outlets saying the same thing. Plus the stock is up $2.50 in premarket trading today :)

If people take a look at how most retail stores are doing right now there is a chance many will be gone by next year. Walmart is the only store that is actually increasing their market-share in this recession and making a profit. I can see why Apple would want to get the iPhone into a retailer that is doing well at this time. Last month some stores like Target were down 10% or more, however Walmart was up. If the trends continue I would expect more Apple products to end up in Walmart. Whether or not you like Walmart it is one of the few stores that is actually increasing it's customer base and if you are a company that is where you want your products.

I don't care for Walmart, but I still do some of my shopping there. Where I live there isn't a lot of choice for shopping so I am actually glad we have a Walmart. I would never wear Walmart clothes and I only purchase low end items there, but it serves a purpose for me.

[iParis]

Thank God.

Well, that doesn't mean we have to throw the $99 rumor out the window.
Maybe after the 32GB comes out it will be sold for something like $99 or $149.

[jayducharme]

Looks as though the Walmart sales are confirmed but the 4GB is still a rumour to me.

Agreed. The article is ambiguous about the 4gb model. I can't see WalMart getting an exclusive on such a phone; that would cut into Best Buy's sales. I don't think Apple would want to pit retailers against each other, undercutting sales of their products. iPod sales have fairly fixed prices. The only leverage retailers seem to have is offering ad-ons (free case with purchase, etc...). WalMarts iPods are usually just $1 below other retailers, so it's not like they have a big advantage. I would expect iPhones to be treated the same way. The biggest beneficiaries will be Apple and AT&T.

BTW, does anyone know how Best Buy has been doing with their iPhone sales? The chain doesn't seem to be pushing it very hard. In flyers around here, there are page after page of ads for Verizon and T-Mobile phones, but scant mention of the iPhone.

[Shasterball]

That is called price fixing, and is against the law in almost all civilised countries.

Price fixing = no price cut anywhere... I know this is just a minimal cut. Plus, I really don't think there is price fixing here -- just retailers that need to make money.

[kdarling]

It's a little ironic that one of the main sticking points that prevented Verizon from selling the iPhone, was Apple's refusal to let them sell it through Best Buy and other Verizon outlets.

[Sweetfeld28]

I figured a $99 iPhone was to good to be true.

[TJunkers]

apple never goes back, so I doubt it. It would be nice for them to introduce something even less expensive for people who can't afford one, but then they might as well come out with another phone model... hint hint apple. hahha

[Mercury7]

It seems this makes it unlikely for the 32gig bump at macworld...I mean would walmart launch a marketing campaign for the 8gig version just a week before the standard becomes 16 and 32?

maybe a new iphone is possible though, ie iphone nano or iphone pro

[gkarris]

I can see the 8 Gig model going to $99 everywhere it's sold, to combat against the new Android phones as well as the touchscreen Samsung and LG ones. Won't happen until the 32 Gig one is released.

[kornyboy]

Wirelessly posted (iPhone: Mozilla/5.0 (iPhone; U; CPU iPhone OS 2_2 like Mac OS X; en-us) AppleWebKit/525.18.1 (KHTML, like Gecko) Version/3.1.1 Mobile/5G77 Safari/525.20)

This is still pretty neat that Wal-mart will be selling the iPhone. I try not to give the Walton family anything but there are some people out there that don't buy anything unless it is sold at Wal-mart.

[lucasmonger]

Remember when the first iPhone came out and people begged for an iPhone nano? I'd venture to guess that Walmart is just selling the 8GB iPhone for now, but in Jan, Apple might just announce a smaller, simpler phone at the lower $99 price that has most of the features of the original iPhone, but with a smaller screen and no ability to run downloadable Apps. Maybe another cost-cutting measure is Edge and no Wifi? If we're lucky it will have 3G and negate the need for Wifi. This should be available to everyone selling iPhones, not just Walmart. Maybe no GPS or camera either, but more like a phone a wireless internet device.

That would differentiate from a high-end smartphone and raise the bar on "regular" phones.

Just a guess...

[zombitronic]

Bloomberg (http://www.bloomberg.com/apps/news?pid=20601103&sid=a4YIU21gLaSY&refer=us), however, is still reporting the possibility of the $99 phone.

According to Street Insider (http://www.streetinsider.com/Insiders+Blog/$99+Apple+iPhone+(AAPL)+To+Be+Introducted+At+Wal-Mart+(WMT)+This+Holiday+Season%3F/4220163.html), the NY Post also thinks the $99 phone is likely.

[dizzy13]

First time I read this I posted the following on my little blog "rumor of iPhone headed to walmart for $99…I don’t think so".

Glad to see some big names calling BGR out on this. I gave it a 50/50 chance of the iPhone showing up in walmart (which now seems more), but a 4GB version and/or an exclusive version/price for just walmart never made any sense. I mean if you know apple you know they wouldn't ever do that.

[shaunymac]

So when is walmart going to start selling macs?
It seems as if apple keeps trying to "reach more and more people" but at what effort will they finally stop?

Maybe three to five years from now we will see the mac mini, if still around, and the macbook sitting beside an acer at wally world.

For all of you doubting it, I definately never thought our phone would be sold at walmart after being introduced at $500. How many more hands do they want to reach? The market share they have right now is fine. They have the loyalists/diehard mac fans and then all of the people that have jumped on the bandwagon. Must we become microsoft? Keep it clean and simple, afterall, that is why we like apple in the first place.

[franzmueller]

Apple needs a 99.- iphone if they want to keep sales up
My guess : end of January the 8 Gb will go down to 99.- when the 32 Gb is announced

Saludos

[alexbates]

Bloomberg (http://www.bloomberg.com/apps/news?pid=20601103&sid=a4YIU21gLaSY&refer=us), however, is still reporting the possibility of the $99 phone.

According to Street Insider (http://www.streetinsider.com/Insiders+Blog/$99+Apple+iPhone+(AAPL)+To+Be+Introducted+At+Wal-Mart+(WMT)+This+Holiday+Season%3F/4220163.html), the NY Post also thinks the $99 phone is likely.

I think that there still is a chance, but only if Apple gets a larger share of money from the service from AT&T.

[iWizzard]

In response to shaunymac:

LOL

"Ok every one now we have 9%,that is enought everyone. No new cosumers. That it."

[Michael73]

Does offering the iPhone at Wallyworld cheapen the Apple brand experience?

I think so.

Here's my issue...

One of the key differentiators for Apple is it's customer support. Now here in Indiana we have 1 Apple store. Even since buying my MP in Sept of '06, the store has gotten progressively busier and busier to the point that if I want to go there I now cringe. The store always has wall-to-wall people and you'll be lucky to get a Genius Bar appointment with under a week wait time.

I'm all for expending the Apple brand experience but I don't think this is done at WalMart. Furthermore, opening the spigot like this will only make the store here in Indiana a more chaotic place as people come in for service, accessories, etc. which not only hurts loyal existing customers like myself but also the new ones.

[Luke1robb]

This is exactly what I thought would happen. Apple would never start selling the 4GB iPhone again.

I personally thought this would have been a great direction for the company. It would get rid of the "price umbrella" steve jobs talked about. I now predict Apple releasing a 32GB iPhone in January at $299 and dropping the others down $100 or simply just dropping the prices $100. They need to get rid of the price umbrella and simply dominate the market. They are already closing in on domination, but this would shut the market down. I think the 32GB phone is more likely, because otherwise it would be setting them up for a lower price point if they just dropped the prices.

[Luke1robb]

Does offering the iPhone at Wallyworld cheapen the Apple brand experience?

I think so.

Here's my issue...

One of the key differentiators for Apple is it's customer support. Now here in Indiana we have 1 Apple store. Even since buying my MP in Sept of '06, the store has gotten progressively busier and busier to the point that if I want to go there I now cringe. The store always has wall-to-wall people and you'll be lucky to get a Genius Bar appointment with under a week wait time.

I'm all for expending the Apple brand experience but I don't think this is done at WalMart. Furthermore, opening the spigot like this will only make the store here in Indiana a more chaotic place as people come in for service, accessories, etc. which not only hurts loyal existing customers like myself but also the new ones.

I would agree with you in some ways, but I think the solution is either:

1) Create more Apple stores, which IS going on.

but more importantly,

2) Provide support for iPhones at AT&T solely, potentially exporting all traffic out of store.

[Shasterball]

So when is walmart going to start selling macs?

I'm not sure the Walmart audience is the right Mac audience. Jobs insists that Macs are a high end item and will not budge. Current Macs certainly tailor to that thinking.... No one goes to Walmart to buy such items...

[Chiefthinker]

CNBC's Jim Goldman just confirmed the wallmart deal and also claims there will be NO $99 price point.

[Luke1robb]

Actually now that I think about it, it makes complete sense that the 4GB will not come out. Not once, has Apple released any new iPhone (capacity, firmware, or hardware) without an announcement. This launch would not involve one obviously. Also, Apple said the holiday line was set, releasing a new iphone would go against what they said. I know, some of you might say, this would be after Christmas, hence holidays, but my first point would conflict with this.

[alexbates]

Remember when the first iPhone came out and people begged for an iPhone nano? I'd venture to guess that Walmart is just selling the 8GB iPhone for now, but in Jan, Apple might just announce a smaller, simpler phone at the lower $99 price that has most of the features of the original iPhone, but with a smaller screen and no ability to run downloadable Apps. Maybe another cost-cutting measure is Edge and no Wifi? If we're lucky it will have 3G and negate the need for Wifi. This should be available to everyone selling iPhones, not just Walmart. Maybe no GPS or camera either, but more like a phone a wireless internet device.

That would differentiate from a high-end smartphone and raise the bar on "regular" phones.

Just a guess...

This is exactly what I've been hoping for since the iPhone came out.

If Apple does decide to release a cheaper phone (which they should and could make a lot of money) it would definitely not have WiFi. I think it would have to have 3G though (and knowing Apple and their idea of "innovation", it would have a touch screen) I have had my old phone for a long time, and it even has 3G. What Apple should do is offer a cheaper of service that does not have an internet plan included. Some people do not want to pay for it, and others just don't use the internet that much to need it on a mobile phone.

If Apple came out with a cheaper phone with an AT&T plan thats only $40 or $50 with texting, I would be the first one to get it. I'm sure that others would say the same thing.

[alexbates]

I personally thought this would have been a great direction for the company. It would get rid of the "price umbrella" steve jobs talked about. I now predict Apple releasing a 32GB iPhone in January at $299 and dropping the others down $100 or simply just dropping the prices $100. They need to get rid of the price umbrella and simply dominate the market. They are already closing in on domination, but this would shut the market down. I think the 32GB phone is more likely, because otherwise it would be setting them up for a lower price point if they just dropped the prices.

I entirely agree with removing the "price umbrella". They would dominate the market if they would sell products at a lower price. Everyone that I have talked to that does not have an iPhone would much rather have one than any other phone, but does not want to pay the price.

It is the same way with Macs. If Apple does come out with the netbooks that are rumored in the first part of 2009, they would dominate the laptop market.

[Saladinos]

It's a little ironic that one of the main sticking points that prevented Verizon from selling the iPhone, was Apple's refusal to let them sell it through Best Buy and other Verizon outlets.

It is a little funny. Still, a Verizon iPhone wouldn't have worked. CDMA is on its own. Apple would have had to create two models.

The other reason, supposedly, was that Apple wanted to deal with handset problems, and Verizon wanted to do all the customer care. That's just stupid IMO. I don't want my carrier dealing with handset issues. I couldn't care less about them. I use their network, but not because I'm loyal to their brand or any rubbish like that.

It's always bugged me how far involved US carriers are. The attitude in the UK is that they're like your water or gas company - you don't really care who provides it, so long as the price is good.

[Michael73]

I haven't heard anything about new stores here in Indiana, but of course the world is a lot bigger than my backyard ;)

To your second point, my first thought ways *brilliant* but with a moment of reflection, it occurred to me that splitting out the iPhone traffic robs Apple of a huge chance to cross-sell other products and services. After all, the iPod has been a great entree for many people to buy a MB or iMac and I see the iPhone as no different.

My thought is that Apple explore creating mini-Apple Department Stores where everyone is exposed to the brand and experience but people with iPhone questions/issues etc. would go to the iPhone dept, Macs to the Mac dept and so on.

I would agree with you in some ways, but I think the solution is either:

1) Create more Apple stores, which IS going on.

but more importantly,

2) Provide support for iPhones at AT&T solely, potentially exporting all traffic out of store.

[Kwill]

There is a market (for a $99 model) for those who are not tech savvy, have no music and never download apps. A 4GB iPhone, even at $99, is such a bad deal. For 2 years, purchaser could not upgrade their phone. In 2009 we expect both a speed bump and, very likely, a new model before the end of the year. As apps mature with more features and larger footprints, most users with only 4GB will soon get GB envy.

I seriously doubt there will be a rush to Walmart and save $2 on an 8GB phone unless Apple and AT&T stop selling the 8GB and introduce speed bumped models for $50 more (i.e.: 16GB @ $249; 32GB @ $299).

[bdkennedy1]

Jesus stop already!

There's not going to be a $99 iPhone at Walmart for the simple and most obvious fact that Apple isn't going to cannibalize their own sales at their stores.

[iOrlando]

According to CNBC, they have talked to apple and apple says:


Walmart Yes, $99 no.

[DSG]

Price fixing is when different companies COLLUDE to fix a price for a similar or the same product. For example, if Microsoft, Apple, and the Linux folks sat down and said, we should all ell our operating systems for $500, that's price fixing.

However, a manufacturer does have control of how, and at what price, their products are sold at. So I think Apple can dictate prices to their partners, or simply not sell to them. Free market.

Suggest you buy an economics or competition law textbook. Don't know about the specifics of US Anti-Trust law but under EU Competition Law there is certainly no requirement for there to be a cartel. Under Article 82 EC a company enjoying a 'dominant position' must not abuse that position. Such abuse includes the imposition of unfair purchase or selling prices.

Not saying anything in particular about Apple but competition law seems to be mentioned fairly frequently on here and most people commenting seem undeterred by the fact that they know f all about it.

[slu]

That is called price fixing, and is against the law in almost all civilised countries.

You need to look up price fixing.

EDIT: I see several others have beat me to it.

[matticus008]

Price fixing is when different companies COLLUDE to fix a price for a similar or the same product.
That is one example. It is not representative of the class.
However, a manufacturer does have control of how, and at what price, their products are sold at.
Only as far as they are the ones doing the selling. Once they have handed over the inventory, the retailers and distributors can do whatever they want with that physical inventory. You could give them away if you wanted. No dictating of prices is permitted.

At best, Apple can set a suggested retail price (which they do), and supplement it with a voluntary contractual relationship setting minimum advertised prices (which they do) in exchange for subsidies or supplier preference (which they do), and then resupply retailers based on their volume and profit performance (which they do). Apple cannot, however, dictate second-degree prices themselves under any circumstances.
Suggest you buy an economics or competition law textbook. Don't know about the specifics of US Anti-Trust law but under EU Competition Law there is certainly no requirement for there to be a cartel.
This is correct. There must, however, be a mandate--the retailer must be threatened or otherwise directly coerced to set a particular price. Incentivizing cooperation, no matter how sweet the incentives, is not price fixing.
Not saying anything in particular about Apple but competition law seems to be mentioned fairly frequently on here and most people commenting seem undeterred by the fact that they know f all about it.
Welcome to my world.

[DSG]

You need to look up price fixing.

EDIT: I see several others have beat me to it.

Do you even know where to "look up price fixing"? As I've said above, I'm talking from some experience of EU competition law rather than US Anti-Trust law but I can promise you that you are talking out of your arse, at least in relation to the EU. I am not saying anything about the current issue, but it is possible both for there to be a breach of competition law where a company enjoying a monopoly (not as easy to define as you might think) abuses that monopoly and also where there is a 'vertical price-fixing agreement' between a company and its distributors, retailers, suppliers etc.

[DSG]

This is correct. There must, however, be a mandate--the retailer must be threatened or otherwise directly coerced to set a particular price. Incentivizing cooperation, no matter how sweet the incentives, is not price fixing.

Interesting - it sounds like EU law casts its net slightly wider than in the US.

[matticus008]

Interesting - it sounds like EU law casts its net slightly wider than in the US.
It does, but the practical effect is roughly the same. European law has a slightly lower threshold for the amount of pressure that must be applied, but also has more liberal curing provisions, so the number of trade practices curbed is fairly comparable. To go with the net metaphor, it is a wider net, but one with bigger holes.

In both cases, it's fairly easy to avoid falling into the net when it comes to price maintenance, as opposed to out and out price fixing.

[techfreak85]

ok see, i would buy one at wal mart if you still had to go to the ATT store. im trying to get my hands on an unactivated iphone so i can use it as ipod touch with a camera, gps and (barely) better speaker.
would walmart give me an unactivated iphone unlike apple and att?:eek:

[sjo]

Apple needs a 99.- iphone if they want to keep sales up
My guess : end of January the 8 Gb will go down to 99.- when the 32 Gb is announced

Saludos

as pretty much everybody conveniently forgets that you get $70+/month subscription on top of the $99 upfront payment the current financial crises seems much easier to understand. people apparently just don't not understand that their in effect borrowing when they buy "cheap" iphones...

i fail to see how $99 iphone is news/rumor worth reporting back and forth once or twice a week, iphone already sold at $0 or $1 by several carriers.

[jtrammell]

Fox Business channel just announced that Walmart will start selling iPhones December 27th. No mention of price or a size change to 4 GB.

Obviously Apple is trying to make up for weaker than expected iPod sells.

Jimmy

[lazyrighteye]

Looks like it's confirmed...

http://www.bloomberg.com/apps/news?pid=20601103&sid=a4YIU21gLaSY&refer=us

Pfft - Shaw Wu...
Has he ever been right about anything relate to Apple?

[alexbates]

ok see, i would buy one at wal mart if you still had to go to the ATT store. im trying to get my hands on an unactivated iphone so i can use it as ipod touch with a camera, gps and (barely) better speaker.
would walmart give me an unactivated iphone unlike apple and att?:eek:

No, you would be required to sign the 2-year service agreement with AT&T, but will have to go to the AT&T store to active the iPhone so you could use it.

From what I have observed, Wal-mart will not be selling the 4GB iPhone for $99, they will be selling the 8GB iPhone for $197.

If you want an inactivated iPhone, you have 2 options:
a) you can buy an iPhone for $199, cancel the 2-year service agreement after it is signed, and pay a $200 fee
or
b) buy an iPhone off of Amazon, eBay, or some other online stores.

[Michael CM1]

That is called price fixing, and is against the law in almost all civilised countries.

No, it's not called price fixing. It's called the manufacturer telling resellers how much they want it to be sold for. Price fixing would be Apple and Microsoft getting together and deciding that no iPod or Zune would be sold for under $500. Another scenario would be Walmart and Best Buy collaborating on a price.

[Michael CM1]

Pfft - Shaw ******** Wu...
Has he ever been right about anything relate to Apple?

What they don't tell you is Kaufman Brothers was founded by Andy Kaufman. He gives no reason for why $99 is some magic number. The magic number has zilch to do with the handset. I'd say the main hangup is the $70/month you have to spend on it through AT&T. It can be hard to use $30 worth of Internet at home, but it can be downright insane to do it on a mobile device. I don't know what the data limit is on an iPhone plan, but I doubt it's a little as the 100MB/month I use.

[joemama]

There is a market (for a $99 model) for those who are not tech savvy, have no music and never download apps.

Won't happen. Apple's App Store has been a HUGE success. It's the way of the future as far as cell phones are concerned.

My question is this - Why would I go to Walmart to buy an iPhone over ATT or the Apple Store? Walmart won't have a leg up as far as models go, so what's the point?

I do hope, however, they use it to announce:

$197 - 16 Gig iPhone
$297 - 32 Gig iPhone

(maybe a $99 8 gig to clear out inventory) THink about it. If Apple has a lot of them around, what better way to get rid of them (while supplies last).

[manowarwi]

There is a market (for a $99 model) for those who are not tech savvy, have no music and never download apps. A 4GB iPhone, even at $99, is such a bad deal. For 2 years, purchaser could not upgrade their phone. In 2009 we expect both a speed bump and, very likely, a new model before the end of the year. As apps mature with more features and larger footprints, most users with only 4GB will soon get GB envy.

I would consider myself to be extremely tech savvy (I have a few letters after my name including ACTC, ACMT, Network+, ;) ) but I would love a 4gb model for $99. I don't listen to music on my phone and never will - I use a $10 generic MP3 player on my motorcycle / working out that if it breaks I don't care about, and 4GB is more than enough space to run all of the apps you could imagine. Well maybe not all you could imagine but more than enough. I would pay $99 for a smart phone such as the iPhone, but $199 jumps to the range where I wouldn't get enough utility out of it to justify the extra $100.

[iWizzard]

My question is this - Why would I go to Walmart to buy an iPhone over ATT or the Apple Store? Walmart won't have a leg up as far as models go, so what's the point?




IF Distanse to Walmart is < Then Distanse to AT&T OR Apple_store
Then Go to Walmart

[paul333]

When I worked in retail we would drop the price say if its $200 to $199. Then $199 to $198. Then $198 to $197. Then...that product # is discontinued or replaced. If you could find a product that is $**7 and it stays on the shelf very long it will go down in price sometimes %50 off. Probably not with the iphone though. :(

[Laglorden]

Price fixing is when different companies COLLUDE to fix a price for a similar or the same product. For example, if Microsoft, Apple, and the Linux folks sat down and said, we should all ell our operating systems for $500, that's price fixing.

However, a manufacturer does have control of how, and at what price, their products are sold at. So I think Apple can dictate prices to their partners, or simply not sell to them. Free market.

Apple can dictate their prices to their partners or simply not sell to them, but I don't think Apple can (or should not be able to) dictate which prices their partners should sell to their end customers. "Sell the IPhone for $199 or we will not sell any to you!!" -"But we will pay the same price ($188 or whatever) that everybody else pays, just shrink our own margins..." -"Sell it for $199 or forget about it!" Free market? kind of...

[tbishh]

NO!!!!!!!!!!!


Wal-mart...really?

Are they going back to home activation?

Best Buy was bad enough, though it would make sense that they carry it since they are an authorized apple reseller and also have AT&T certified employees, but Walmart? they sell iPod's and that's it.

[twoodcc]

well, at least they'll be selling the iphone at walmart. that is still a good thing.

[ant-macyourself]

Fox Business channel just announced that Walmart will start selling iPhones December 27th. No mention of price or a size change to 4 GB.

Obviously Apple is trying to make up for weaker than expected iPod sells.

Jimmy

Actually, AppleInsider just posted an article last week saying many major retailers are running low or sold out of iPod inventory. Demand is higher than expected, despite the economical troubles.

I think the Walmart deal as a whole is a positive for Apple. They need to get as many distribution points as possible, especially when there are no online sales anymore. There are a lot more Walmarts than Best Buys or Apple Stores.

[Eddyisgreat]

Saying that there will be an iPhone Nano with no wifi....thats just silly.

The iPhone is an internet centric device. That's why you are supposed to get a data plan with it. Half of the Apps require Data for certian connectivity (be it multiplayer or just general usability when there is no service). By selling a version that would be less application oriented there would be no compelling reason to get one. Sure, Notes is pretty cool, and the iPod intergration is great, but pretty much every other app would require data of some sort. I know-when I unlocked my first gen back in the 1.x.x days and there was no t-mobile data fix, everything I would try to do wouldn't work because of lack of connectivity.

Also, a smaller screen and overall different configuration would throw alot of developers off. I suspect thats why the 3G iPhone was keep reasonably the same-adding too many advanced functions over the 1st Gen iPhone would create a windows-mobile type paradigm. Higher resolution, different button layouts, lack of Updates amongst the first generation etc etc.

Don't get me wrong, i'd love to see it. But a nano version...that would be crazy. Apple will do well in this economy. Their products are still sought after, even if the demand is artificially manipulated by price. I could see a 4 Gig version just to get the device in the hands of more people and maybe cater to those who are less power users/music enthusiasts/media whores, but a whole 'nother version? Nahh.

[nickXedge]

It's a little ironic that one of the main sticking points that prevented Verizon from selling the iPhone, was Apple's refusal to let them sell it through Best Buy and other Verizon outlets.

I was under the impression it was the activation procedures that kept the iPhone off of Verizons service.

[stone315]

but with a smaller screen and no ability to run downloadable Apps. Maybe another cost-cutting measure is Edge and no Wifi? If we're lucky it will have 3G and negate the need for Wifi. Maybe no GPS or camera either, but more like a phone a wireless internet device.

The iPhone and the app store are virtually synonymous by now. It will be much more difficult to sell it, even at a cheaper price, if you cut out the third party app functionality. I can see GPS being cut out, but every phone has a camera now. People expect that and will want to have that functionality. Cutting out wifi wouldn't be very logical either; it's already in the iPod Touch, so customers will expect it to be in the iPhone as well.

[kloppenator]

Price fixing is when different companies COLLUDE to fix a price for a similar or the same product. For example, if Microsoft, Apple, and the Linux folks sat down and said, we should all ell our operating systems for $500, that's price fixing.

However, a manufacturer does have control of how, and at what price, their products are sold at. So I think Apple can dictate prices to their partners, or simply not sell to them. Free market.

This is 100% true. I work in retail and weber does this with their BBQ's. You will never see a price on a bin tag lower in home depot versus Ace Hardware. Weber's does not allow us to put them on sale, but if we are having a bag sale , the BBQs will be marked off the same as any oyer product.

[kdarling]

I was under the impression it was the activation procedures that kept the iPhone off of Verizons service.

Never heard that. The original USAToday interview (see here (http://www.usatoday.com/tech/news/2007-01-28-verizon-iphone_x.htm?POE=TECISVA)) said that:

Apple wanted a part of monthly revenues. Well, that plan only lasted one year. Now it's subsidized like every other phone.

Apple wanted control over customer service. Verizon didn't like that.

And Apple insisted they control distribution, which would leave out Verizon distributors such as Best Buy and Walmart. Verizon didn't want to screw over their partners.

Now, a year and half later, Apple has back off of much of what they insisted on.

[slu]

Do you even know where to "look up price fixing"? As I've said above, I'm talking from some experience of EU competition law rather than US Anti-Trust law but I can promise you that you are talking out of your arse, at least in relation to the EU. I am not saying anything about the current issue, but it is possible both for there to be a breach of competition law where a company enjoying a monopoly (not as easy to define as you might think) abuses that monopoly and also where there is a 'vertical price-fixing agreement' between a company and its distributors, retailers, suppliers etc.

Listen, buddy. First of all, just because something comes up in a thread that you may have extensive knowledge about doesn't mean you get to be a pompous ass. WE GET IT, you know about competition law. Rather than be an ass, perhaps you could be helpful and maybe we could learn something?

Second, my comment was in reference to the first comment about price fixing. Whether or not I know where to "look up price fixing" is irrelevant. But I'd imagine a dictionary would be the first place to start.

We ALL understand that competition law, or all law for that matter, is nuanced and complex based on the specifics of the case.

It is well known that when a party agrees to resell Apple products, they voluntarily agree to not discount that product below a certain floor. Is this price fixing? If it is, then it must not be against the law in all civilized countries like the comment I was referring to said.

Perhaps I, like you, was being an smart-ass in my reply, which I now regret. But I do stand by my comment's original intent, which was that Apple has the right to negotiate terms of resale for their products, which include a price floor for the products. The vendors agree to this voluntarily. They are under no obligation to do business with Apple and many other companies make competitive products.

As you stated:

"it is possible both for there to be a breach of competition law where a company enjoying a monopoly (not as easy to define as you might think) abuses that monopoly and also where there is a 'vertical price-fixing agreement' between a company and its distributors, retailers, suppliers etc."

Easy to define or not, do you think anyone would define Apple as enjoying a monopoly in the cell phone business? Or any business? Do you think they are guilty of vertical price fixing?

Maybe, you could give your opinion since you know so much about the topic? Or is it just more fun to talk down to people?

[RTiii320]

Dec. 28 ... 3days after Christmas ... interesting

[Jai2]

Walmart contributes nothing positive to the world, to workers or to quality products. It is so disppointing that an innovative company such as Apple, with all of their possible options, would partner-up with the poster children for the most rapacious elements of the capitalist pyramid scheme. I do all of my creative work on Mac's and love them, but now that I'm due to update my phone, I will avoid buying an iPhone -- or anything else that I possibly can --that is sold at a Walmart. (Shop local for locally made, green products.)

How much more screwed does the economy need to get before people wise up to the role Walmart (the world's biggest retailer) has played in forcing companies to cut their production costs by shipping our jobs overseas to be performed by underpaid, unrepresented and mistreated labor? Did Apple learn nothing from getting spanked previously over their own overseas manufacturing issues? Apple should be blazing the trail away from Walmart and their practices & retail bullying-- not kissing up to them.

At what point do we subjugate our desire to have "now & cheap" with the longer range, larger picture of having decent jobs at decent wages making sustainable and useful products? How long do we shoot ourselves in the foot over and over? What do we need more-- a new gadget, or a roof over our heads, food on the table, health care?

Apple's decision to mate with the devil is a great disappointment. :apple:

[matticus008]

It is well known that when a party agrees to resell Apple products, they voluntarily agree to not discount that product below a certain floor. Is this price fixing?
Not to interject, but no, it's price maintenance, and the situation you describe is indeed illegal in all western legal systems.

Your description is not what e.g. Apple, Bose, Garmin do, though. It's a subtle but critical difference. The retailers are not agreeing to sell at a set price; they are agreeing that if they meet certain qualifications, there are consequential benefits. At no point does it amount to a promise to sell at a particular price, because that would allow for contractual penalties impinging on the retailer's right to set his prices independently.
Apple has the right to negotiate terms of resale for their products, which include a price floor for the products.
An agreement to set prices around a specified level, whether a floor or a ceiling, is unlawful, whether the intent is innocent or malign.
Do you think they are guilty of vertical price fixing?
Well, apart from the fact that being a monopoly has nothing to do with anything, vertical price fixing requires the exercise of a degree of control and a binding promise not present here. What we have is indeed a vertical restraint, but one that cannot be labeled price fixing.

It's called price maintenance, and as long as participation is voluntary and there are no penalties for failure to comply (declining to renew agreements or fill future orders is not a penalty), it is a valid exercise of free dealing.

[iJoe85]

http://tech.yahoo.com/news/ap/20081208/ap_on_hi_te/wal_mart_iphone


BOOYAAAH!

[shaneglass]

MacRumors isn't posting the rest of the pictures they have.

It's as I've said all along. December 28th at 9am they will be available for sale. $197 for the 8GB and $297 for the 16GB. Two-year contract required and the activation will be done in store at our Walmart kiosks.

No $99 iPhone anywhere in sight.

[seashellz]

Its gotta be $100. what point in selling a mere $20 off for the middle market?
This is for people who like the iPhone but dont need to store the Encyclopedia on it, or play Wizards

[ghanwani]

My main problem with iphones is not the cost. A $99 iphone won't make the deal attractive because the main cost is the service plan. If the service plan is reduced then it might make more sense...if lower by $10/mo it far out does the initial cost savings of the device.

The next issue I have is the fact that AT&T will never unlock the phone, not even after 2 years. If I go and get it unlocked by unofficial means, I will never be able to update the software.

My third problem with the iphone is the battery. You have to send it back to Apple if you ever have problems with the battery.

I'm quite surprised that there are as many users of the iphone as there are despite all of these issues.

Otherwise, it's a lovely device.

[kdarling]

Its gotta be $100. what point in selling a mere $20 off for the middle market?

It's only TWO dollars off ($197/$297), not TWENTY.

:)

[DakotaGuy]

Walmart contributes nothing positive to the world, to workers or to quality products. It is so disppointing that an innovative company such as Apple, with all of their possible options, would partner-up with the poster children for the most rapacious elements of the capitalist pyramid scheme. I do all of my creative work on Mac's and love them, but now that I'm due to update my phone, I will avoid buying an iPhone -- or anything else that I possibly can --that is sold at a Walmart. (Shop local for locally made, green products.)

How much more screwed does the economy need to get before people wise up to the role Walmart (the world's biggest retailer) has played in forcing companies to cut their production costs by shipping our jobs overseas to be performed by underpaid, unrepresented and mistreated labor? Did Apple learn nothing from getting spanked previously over their own overseas manufacturing issues? Apple should be blazing the trail away from Walmart and their practices & retail bullying-- not kissing up to them.

At what point do we subjugate our desire to have "now & cheap" with the longer range, larger picture of having decent jobs at decent wages making sustainable and useful products? How long do we shoot ourselves in the foot over and over? What do we need more-- a new gadget, or a roof over our heads, food on the table, health care?

Apple's decision to mate with the devil is a great disappointment. :apple:

I don't usually defend Walmart however this time I will go out on a limb and say that Walmart isn't any worse then Apple has been as far as shipping jobs overseas. The biggest difference however is that Walmart has somewhat passed the cost savings of Chinese produced goods back to the consumer. Apple still charges a premium for their products even after they switched to low wage Chinese production. How else do you explain Apple's high profit margins? They are no different then any other Corporation. They are in business to make a profit for their shareholders and executives.

I love Apple, but they are just as guilty as the rest when it comes to this issue. The only consumer electronics product that I have bought recently that was made in the USA was a Bose Wave CD/Radio. That's it. I can't find any others.

[iLoveMyApple]

Nooooo! Why Appple?!?!?! Whyyy?!? Walmart?!?!? Why Not Target?!?! Target Is So Much Better! Walmart Is Soooo Gross!

[synth3tik]

Best way to cheapen your brand name?

Sell them to Walmart.

Yuck!

[variations]

Nooooo! Why Appple?!?!?! Whyyy?!? Walmart?!?!? Why Not Target?!?! Target Is So Much Better! Walmart Is Soooo Gross!

Why is Walmart so gross?

[mozadek]

Bad news for the fan boys, good news for everyone else.

[Bregalad]

Apple isn't going to start offering cut rate iPhones because it would harm their image as a supplier of premium goods. I wouldn't be surprised if the base iPhone moves to 16GB next rev. They're never going back to 4GB and will never drop to $99.

In fact I expect the price to increase over time as carriers become more reluctant to offer revenue sharing and as customers become more determined to have flexibility.

[slu]

matticus008, your post is greatly appreciated and I learned something from it. The concept of price maintenance is not a well know one.

[techfreak85]

No, you would be required to sign the 2-year service agreement with AT&T, but will have to go to the AT&T store to active the iPhone so you could use it.

From what I have observed, Wal-mart will not be selling the 4GB iPhone for $99, they will be selling the 8GB iPhone for $197.

If you want an inactivated iPhone, you have 2 options:
a) you can buy an iPhone for $199, cancel the 2-year service agreement after it is signed, and pay a $200 fee
or
b) buy an iPhone off of Amazon, eBay, or some other online stores.

but walmart does not have an in house activation service (that i know off for the iphone anyway), so they cant make me activated it on the spot like the apple or att store. so insted of going to att, i go home and hack it right?

[BigPrince]

http://www.poconorecord.com/apps/pbcs.dll/article?AID=/20081208/NEWS/81208018

[jvlog]

Why apple, why?
of all the qualified venders to distribute the iPhone you have to choose wal-mart :-(
now I'm gonna feel like white trash every time i make a call

[mozadek]

Why apple, why?
of all the qualified venders to distribute the iPhone you have to choose wal-mart :-(
now I'm gonna feel like white trash every time i make a call

How elitist of you :D

[matttrick]

they just had this on the news in ny, "as low as $99".

[Rodimus Prime]

I personally do not like walmart and tend to advoid them. A lot of companies make 2 versions of there products. The Walmart version and the good one.

Walmart one is cheaply made and normally is crap. Walmart due to what it forces on its suppliers destroys brand names. Walmarts gets them in and then over time forces there product to be cheaper and cheaper under the threat of making them leave their stores. Make the brand completely worthless.

[spacecadet610]

If you have multiple american express cards, you can get a great deal on the iphone through Walmart.

Amex offers a $20 credit if you make 2 $40 puchases. Gift cards work. If you have 4 Amex cards, buy $320 of gift cards and get $80 back. Use gift cards to pay for the 16gb iPhone.

Also, you may qualify for significant savings off your monthly bill through AT&T. Many schools and work places quailfy.

See my site (http://mysavingcents.blogspot.com) for details. Look for Walmart and At&t posts

[DakotaGuy]

I personally do not like walmart and tend to advoid them. A lot of companies make 2 versions of there products. The Walmart version and the good one.

Walmart one is cheaply made and normally is crap. Walmart due to what it forces on its suppliers destroys brand names. Walmarts gets them in and then over time forces there product to be cheaper and cheaper under the threat of making them leave their stores. Make the brand completely worthless.

I understand that there is a lot of hate towards Walmart, however it is funny that Walmart is one of the few stores that continues to gain market-share every month. Last month stores like Target, Sears and almost all other Department Stores and Electronic retailers were down double digits and Walmart was up once again. This year only Walmart is going to have an outstanding Christmas. Everyone else is barely hanging on.

I think Apple sees this and knows they have to get their products out where people are shopping if they want to continue to gain marketshare. Walmart might cheapen a products image, but if only Walmart is left does it really matter?

[Ethonastar]

i've stated already a few days ago on this very site that walmart will be selling the iphone. iphones will be offer as 8GB and 16GB and will go on sell to their workers DEC 15. everyone else, shoppers that is, have to wait till late DEC to buy it. either way the iphone comes with a 2 year contract at a 69.99 start price. this plan includes the 450 anytime rollover minutes along with the 30 dollar internet/data charge. once again you all are welcome to trust my info or not (seeings how i work for walmart) but soon you all will find out.

[Peace]

Nooooo! Why Appple?!?!?! Whyyy?!? Walmart?!?!? Why Not Target?!?! Target Is So Much Better! Walmart Is Soooo Gross!

Just watched a Target commercial on TV and the guy was showing gifts to buy this year and he held out a 3G right into the camera.;)

[RAS admin]

Yesterday CNN reported on the $99 iPhones at Walmart starting Dec. 28th. So it must be true.... :rolleyes:

[FarmerTed1971]

My morning news had a story in a $99 4GB WalMart iPhone just now. Maybe it is true?

[rjohnstone]

Just watched a Target commercial on TV and the guy was showing gifts to buy this year and he held out a 3G right into the camera.;)

That was a Touch, not an iPhone. ;)

[variations]

I personally do not like walmart and tend to advoid them. A lot of companies make 2 versions of there products. The Walmart version and the good one.

Walmart one is cheaply made and normally is crap. Walmart due to what it forces on its suppliers destroys brand names. Walmarts gets them in and then over time forces there product to be cheaper and cheaper under the threat of making them leave their stores. Make the brand completely worthless.

Nothing that I have bought from Walmart has broken just like that. And I really do not know what Brand names they have made completely useless. Definitely nothing related to video games.

[KindredMAC]

What is up with the hatred for WalMart?
There is nothing wrong with WalMart. Just because you can buy an iPod there, does that mean the iPod is junk?

Oh my God, I just bought an iPhone at WalMart and that means that it is utter crap now.

What a crock of crap people..... grow up. It's only a store.
I wouldn't care if I could buy a Mac at TJ Maxx... It's still a Mac.

[pmbooks]

Slightly divergent question, sorry: wife and I use ATT—two phones on one account—with the second phone costing another $10 per month (family plan deal). Like a couple of others who've posted here, I'd buy a 4GB iphone for $99 (if one does appear), but probably not the $200+ versions. Does the ATT family plan work for multiple iphones ($70 + $10), or not ($70 + $70)? I suppose I could ask ATT or Apple, but since I'm hanging out here just now... thanks.

[matticus008]

matticus008, your post is greatly appreciated and I learned something from it. The concept of price maintenance is not a well know one.
Glad I could help.

[lucasmonger]

Slightly divergent question, sorry: wife and I use ATT—two phones on one account—with the second phone costing another $10 per month (family plan deal). Like a couple of others who've posted here, I'd buy a 4GB iphone for $99 (if one does appear), but probably not the $200+ versions. Does the ATT family plan work for multiple iphones ($70 + $10), or not ($70 + $70)? I suppose I could ask ATT or Apple, but since I'm hanging out here just now... thanks.

If you already have ATT, enter your phones into their website to check for eligibility - your phones need to first be eligible for an upgrade. Once past that, you can get iPhones on your existing plan by adding data (for the original iPhone it's $20 per phone, for 3G it's $30 per phone). If you want to dump your existing plan and switch to the minutes in the iPhone familytalk plans, then it would be $70 for the first 3G iPhone ($60 for a 2G iPhone) , $39 for the next 3G iPhone ($29 for the original iPhone). So the cheapest monthly service you can get 2 phones is $109 for the original iPhones and $129 for 3G iPhones. You can also mix and match (have anywhere from 2 to 5 original and 3G iPhones).

Unfortunately, even if you live in a location which doesn't have 3G coverage yet, if you have a 3G iPhone, you still have to pay that extra $10 (you could always visit a big city and start using their high speed network). As a result, there is still a lively market for original iPhones on Ebay and Craigslist in areas which don't have 3G yet, because over 2 years it saves you $240 per phone in plan rates.

If you want text messaging on 3G, you have to add $5 per line for 200 msgs, $15 per line for unlimited, or you can pay $30 and all familytalk members have unlimited. For the original iPhone you get 200 messages as part of your plan and pay extra for more.

So the difference in cost of the iPhone 3G if there is a cheaper 4GB model ($99 vs $199) is almost negligible in this decision compared to the cost of the service (if you're paying $10/mo for the second phone, you'll be paying $39 or $29 per month for your second iPhone. Multiply that over 2 years and it kind of makes holding out for the $99 Walmart phone not worth it. Believe me, my wife and I use our iPhones all the time and would never go back to a regular phone. It doesn't bother me that we paid $399 for the phones - the amount of use and usefulness getting to the internet from almost anywhere is well worth it.

[pmbooks]

Thanks so much, lucasmonger, for your very thorough answer. Makes sense that over the long term the initial savings for a smaller storage iPhone turns out to be small in relation to overall cost. I only wish I could have one for a few weeks to see if I'd really use it as much as you say you do. I work so much of my day on the computer, and a part of me doesn't relish the idea of more similar time on a smartphone. btw, the cell phone I do use is about as low tech as they come, which shows you where I work from at this point. But, like all things cutting edge technical, I'm sure I'd be continually surprised by little tricks and conveniences that would add to my daily experience.

Thanks again, PM

[Vegastouch]

Agreed. The article is ambiguous about the 4gb model. I can't see WalMart getting an exclusive on such a phone; that would cut into Best Buy's sales. I don't think Apple would want to pit retailers against each other, undercutting sales of their products. iPod sales have fairly fixed prices. The only leverage retailers seem to have is offering ad-ons (free case with purchase, etc...). WalMarts iPods are usually just $1 below other retailers, so it's not like they have a big advantage. I would expect iPhones to be treated the same way. The biggest beneficiaries will be Apple and AT&T.

BTW, does anyone know how Best Buy has been doing with their iPhone sales? The chain doesn't seem to be pushing it very hard. In flyers around here, there are page after page of ads for Verizon and T-Mobile phones, but scant mention of the iPhone.

Who cares if it cuts into Best Buys sales? And this wouldnt be the first time Walmart gets an exclusive on items. They are the ONLY place where you can buy AC/DC's new CD and they are the ONLY place that you could get the Eagles latest CD. Two groups that have sold millions of records and CD's which is cutting into Best Buy.
This would be on a bigger scale but i dont see why Apple would care if Walmart is selling their iPhone with the smallest memory. People still want them. I just sold my unlocked and jailbroken 4GB iPhone on ebay for $315 and unlocked or not, people are still buying the 4GB there.
Best Buy has many, many other things that Walmart doesnt have so i doubt it will come close to hurting them....if there is even any truth to it and if so, who cares? You still cant get one from a retailer without signing up for AT&T service.

[lucasmonger]

Thanks so much, lucasmonger, for your very thorough answer. Makes sense that over the long term the initial savings for a smaller storage iPhone turns out to be small in relation to overall cost. I only wish I could have one for a few weeks to see if I'd really use it as much as you say you do. I work so much of my day on the computer, and a part of me doesn't relish the idea of more similar time on a smartphone. btw, the cell phone I do use is about as low tech as they come, which shows you where I work from at this point. But, like all things cutting edge technical, I'm sure I'd be continually surprised by little tricks and conveniences that would add to my daily experience.

Thanks again, PM

Diverging even more, just to give you some perspective, after I got my iPhone I found myself not using my computer nearly as much. My office blocks webmail so I used to come home from work and sit all night catching up on emails, web surfing, etc. With the iPhone I end up reading my favorite websites, email, etc. in 2 to 5 min spurts all day long so when I get home, I can spend quality time. You can visit a page at a stoplight, when it turns green drive a bit, complete the quick read at the next light (just don't surf and drive at the same time - way too dangerous). The iPhone isn't a complete replacement for a computer. It's good for reading things, not good for creating or editing documents (for that you will need a computer). The other huge convenience is being able to access the internet from almost anywhere. Certainly, having a larger screen and faster networking of a computer is better, but when you are out and about, it is extremely useful. My only regret is not switching carriers 6 months earlier when my Sprint plan was up.

[showkati]

So will the walmart iphones be activated on the spot or no?

[gotem33]

I was talking online to an Apple customer service representative, because my iphone fell into water and got a damaged water sensor, P.S. don't try painting it they scratch the paint off and see the damaged sensor:) but anyway the representative hint hint cough coughed to wait for the new iphone 3g that is coming out after christmas to walmart, maybe it is just a rumor but I think I'll wait. If that helps any then great if not don't try paper, bleach, alcohol, or paint when trying to trick apple because they don't really work.:apple:

[99MustangGTman]

If this is true I may drop my sprint service and get the iPhone.

[Vegastouch]

If this is true I may drop my sprint service and get the iPhone.

I would drop Sprint with or without an iPhone.

[ericjohnson1981]

If this ever happens I'm buying out the entire store! http://saucekitpro.info/img/1606/i08d1211uavx/counter.jpg