“In what might be an unprecedented move by Apple Inc., the company apparently has agreed to permit Wal-Mart Stores Inc. to sell the iPhone 5C and iPhone 5S at discount prices. The 5C, which carries a list price of $99, will sell for $79, and the 5S will sell for $189, compared with the list price of $199,” Paul Ausick reports for 24/7 Wall St.
“Apple surely will receive its full selling price from Walmart, so revenues will not be affected, but the optics are unusual to say the least,” Ausick reports. “Discounting a new product just two days after it has been introduced is new ground for Apple, at least in our memory. Why would the company do this?”
Ausick reports, “Likely, Apple is running a trial. The company knows that sales of low-priced smartphones are projected to explode in the next few years. Even though the iPhone 5C priced at $99 is a good buy, dollar-conscious consumers might need an extra shove to part with their scarce cash. If sales at Walmart can demonstrate that discount pricing both moves product and provides profits, the company will have set itself up for success in that part of the market in which price is the leading consideration among consumers and where most of the growth is expected. That could make a significant difference in Apple’s future sales in China and other emerging economies.”
Read more in the full article here.
MacDailyNews Take: Most likely is that it is simply a loss leader for Walmart. The same has been done with Apple iPhones and iPads in the past at Walmart and elsewhere.
[Thanks to MacDailyNews Readers “Fred Mertz” and “David E.” for the heads up.]
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