Walmart offering Apple iPhone 5 for $127, iPhone 4S for $47, iPad (4th gen.) for $399

“Starting today, Walmart has dropped prices on both the iPhone 5 and iPhone 4S, with the 16 GB iPhone 5 now on sale for just $127 and the iPhone 4S coming in at $47,” Eric Slivka reports for MacRumors.

“In addition, Walmart is now selling the latest fourth-generation 16 GB Wi-Fi iPad for just $399, a $100 discount from standard pricing,” Slivka reports.

“And beginning on Monday, Walmart will also include a $30 iTunes gift card bonus with iPad purchases,” Slivka reports.

Read more in the full article here.

MacDailyNews Take: iPhone and iPad, the perfect loss leaders*. This also bodes poorly for Android and all other iPhone knockoffs, wannabes and roadkill.

*Retailers often use very popular products as “loss leaders” in order to draw customers into a store where they are likely to buy other goods.

19 Comments

  1. Walmart.com says “iPad 2” NOT latest iPad 4 or even 4.
    —here is the ad–
    This Apple iPad 2 16GB WiFi & Bonus Accessory includes your choice of:
    • 1 Apple iPad 2 16GB (Wi-Fi) Black or White

  2. Some people have no clue.

    The retail price of iPhone 5 (base version) is $650. Walmart is discounting them by $72. This represents about 11% discount to the full price.

    Another important bit of info for our crikeym8 (from down under, I suppose): estimated manufacturing price (the actual cost) of the iPhone has always been somewhere around $230 (US). Apple has been famous for their beefy margins on Macs, but the margins on the iPhone have, since the first one came out, almost 7 years ago, always been astronomical. 11% discount, which is actually given by Walmart, is negligible. It may likely still be above Walmart’s wholesale price; in other words, even with this extremely attracive discount (which looks like almost 40% off), Walmart is probably still turning slight profit.

  3. I know you people hate WalMart or that Tim would let them sell our beloved gadgets but, the world’s largest retailer recognizes that customers will no longer pay the premium for something that has become pretty much like all the other gadgets by the myriad other gadget makers. More than anything else today, price cuts on Apple’s gadgets confirms Wall Street’s conclusion that AAPL’s glory days are over and the recovery to anything close to the all time high isn’t ever going to happen. Like Bill Parcells famously and correctly concluded – you are what the record says you are.

    1. Bull. This is a discount on the entry-level models only — at or near clearance prices. The 16GB model is inadequate for most needs — even kids. I expect the 32GB models soon will be the models sold with minimal amount of storage.

  4. This worries me. Can BOGO be far away? Apple cannot afford to lose market share and margin. After all Cook gets more than a million a day of the profis. I still have my stop order at $450, might get there by Xmas the way it is falling.

  5. Lets not forget, Apple tried to not follow our laws as well. They first market a 4g product that wasnt 4g, they then refuse to honor our 2 year warranty laws, then they gave second hand phones to consumers as replacement for DOA handsets. Oh by the way, they only paid $75 mill in tax over here. AND U WONDER WHY. It doesnt matter its an american company, what matters it A company taking the piss outta people.

    1. crikeym8, Gee, if you want to get nasty, how about that Australia was made up mostly of criminals that got left there by the british… So that must make all you guys bad people….. Right.

      If you are worried about the price of Apple product, buy samdung products. I have and the company totally sucks on customer service and product repair.
      As far as “4G”, Apple uses the terminology of the rest of the world, sorry that the aussies are behind the times.
      Taxes. they pay the legally required about. I am sure you always pay 2x or 3x the amount you are required, right…

      OK done rant. Such trolling is getting on my nerves. Guess this weekend is coming around just in time. PS. just picked up a new iPhone 5 16 G for $127 from Walmart. Just love this country. I will get AppleCare+ later.

      Just a thought and Happy Holidays to all.
      en

  6. What I’m confused about is exactly when Apple started allowing retailers to discount their products. It had been a rule that you sell at Apple’s price or you don’t sell at all. Apple’s reasoning was that, if you allow retailers to discount your products, eventually the discounted price is perceived as the normal price. Then you become dependent on the retailers to continue the discount, and if they don’t, you find yourself forced to lower the price yourself.

    That’s why you would see stores like Best Buy offering free gift cards with purchase, as sort of a “back-door” discount without actually lowering the price.

    But now Walmart is allowed to sell Apple stuff for whatever price they like? Either Apple has had a major change in philosophy, or there’s something I’m missing here.

    ——RM

    1. When I worked at Wal-Mart many moons ago the car stereos/speakers and TVs were all refurbished last years models (they had a tag on them that said so). I suspect these “discounted” iPhones and iPads are also refurbished. Notice there is nothing that says they are new iDevices.

  7. The Walmart “discount” is $62 from its former list price of $189. My guess is that carriers are reimbursing most of it. Carriers pay $62 more (than whatever they now pay) to acquire new customers willing to pay $1240 (estimated) over two years …although most customers probably stay with their carrier for more than two years. More importantly, Walmart can reach a NEW segment of customers who might not otherwise buy an iPhone, because Walmart provides credit card to many people who cannot qualify for bank credit cards. The “extra discount” looks like a smart strategy for Walmart, carriers, and consumers. Apple benefits, too, of course — though I doubt they are involved in the deal.

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