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SFStateStudent

macrumors 604
Original poster
Aug 28, 2007
7,496
3
San Francisco California, USA
to fight Wal-Mart...
 

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Is $3, or even $10, really going to make or break iPhone sales for anyone? We're talking about a device with a $100/month contract... is there anyone out there that's thinking "Well, I'd love an iPhone, but $199 is too much... oh, they're only $197? Sign me up!"

That said, I guess this price-slashing thing works, so more power to them...
 
Is $3, or even $10, really going to make or break iPhone sales for anyone? We're talking about a device with a $100/month contract... is there anyone out there that's thinking "Well, I'd love an iPhone, but $199 is too much... oh, they're only $197? Sign me up!"

That said, I guess this price-slashing thing works, so more power to them...

That's Walmart's trick. "At Target, the Charmin is $1.49. Here at Walmart, it's $1.47. Lower prices -- always!!!!!!!" I literally found 2 cents on the floor of my car.

Whenever I get a 3G, I'll probably get it from Best Buy since I have a Reward Zone card. But I may go to The Apple Store because the people at Best Buy often are just stupid about electronics past the "here's the power button" stage.
 
Is $3, or even $10, really going to make or break iPhone sales for anyone? We're talking about a device with a $100/month contract... is there anyone out there that's thinking "Well, I'd love an iPhone, but $199 is too much... oh, they're only $197? Sign me up!"

That said, I guess this price-slashing thing works, so more power to them...
Yes. Best Buys are spread out more than Apple stores are, if they are $10 cheaper and closer to someone's home rather than the Apple store is, then someone might decide to get it there instead.
 
Holy crap, 10 whole dollars? That makes the iPhone almost free! I'm sure that there are a lot of people out there who could not afford the iPhone at a price like $199 with $80 per month contract. But now that BB is selling it for $189, they'll be flying off the shelves!
 
That's Walmart's trick. "At Target, the Charmin is $1.49. Here at Walmart, it's $1.47. Lower prices -- always!!!!!!!" I literally found 2 cents on the floor of my car.

Whenever I get a 3G, I'll probably get it from Best Buy since I have a Reward Zone card. But I may go to The Apple Store because the people at Best Buy often are just stupid about electronics past the "here's the power button" stage.

Yeah, I get the perception thing with Walmart, and it does work. But Best Buy seems like they're targeting Walmart's price, not the perception that Walmart = cheap per se (if that makes sense?).

Add to this the fact that, unlike Charmin, an iPhone comes with a ~$100/month contract regardless of where you buy it, and cutting the price of the handset just seems silly.

If I were Best Buy, I think they'd have better luck throwing in a free case or something. Something that retails for $25 but costs Best Buy $10 would have the same cost to the company, but they could advertise it as "free case: $25 value", which sounds better imo...
 
Holy crap, 10 whole dollars? That makes the iPhone almost free! I'm sure that there are a lot of people out there who could not afford the iPhone at a price like $199 with $80 per month contract. But now that BB is selling it for $189, they'll be flying off the shelves!

Is $3, or even $10, really going to make or break iPhone sales for anyone? We're talking about a device with a $100/month contract... is there anyone out there that's thinking "Well, I'd love an iPhone, but $199 is too much... oh, they're only $197? Sign me up!"

I'll wager a guess and say neither of you studied business, even though this concept seems common sense to me. The $10 discount isn't meant to convince the people who couldn't afford it at a higher price to buy. It is meant to convince the people who already plan to buy an iPhone to purchase it from BestBuy. $10 is more than enough to convince a lot of people to choose BestBuy over another retailer.
 
I'll wager a guess and say neither of you studied business, even though this concept seems common sense to me. The $10 discount isn't meant to convince the people who couldn't afford it at a higher price to buy. It is meant to convince the people who already plan to buy an iPhone to purchase it from BestBuy. $10 is more than enough to convince a lot of people to choose BestBuy over another retailer.

Agreed.

Also, don't forget that when people buy cell phones, they'll look for cases, car chargers, etc, and for some shoppers 10.00 off the cost of the phone=10.00 more to spend on a case, charger, etc. And Best Buy makes fatter margins on accessories, so if the savings just moves over to people loading up with cases and chargers then Best Buy makes back their discount easily.
 
its marketing. a lot of people i know say "Yes $3 means a lot!!!! It makes me feel better knowing I did not pay Apple's Price" so... i don't know...
 
I'll wager a guess and say neither of you studied business, even though this concept seems common sense to me. The $10 discount isn't meant to convince the people who couldn't afford it at a higher price to buy. It is meant to convince the people who already plan to buy an iPhone to purchase it from BestBuy. $10 is more than enough to convince a lot of people to choose BestBuy over another retailer.

I wouldn't drive out of my way to save $10 on the cost of the handset. But I take your point: some people probably would.

*shrug*
 
Holy crap, 10 whole dollars? That makes the iPhone almost free! I'm sure that there are a lot of people out there who could not afford the iPhone at a price like $199 with $80 per month contract. But now that BB is selling it for $189, they'll be flying off the shelves!

The $10 isn't to entice you to purchase an iPhone but rather where to buy an iPhone.

Edit: Guess I should have read the whole thread before responding as atomic3 has already pointed this out.
 
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