Walmart to offer Apple iPhone 5s for $127, iPhone 5c for $27 starting Friday

“As part of a holiday sale starting Friday, Wal-Mart plans to offer the iPhone 5c for $27 with a two-year contract from AT&T or Verizon,” Salvador Rodriguez reports for The Los Angeles Times.

 
 
 
“That’s a huge discount on the iPhone 5c, a $99 model that Apple introduced just three months ago,” Rodriguez reports. “The iPhone 5c has struggled to sell and Wal-Mart has been discounting it since it was released in September.”

MacDailyNews Take: Pure lie or pure ignorance. Zero proof, regardless. Directly opposite of factual reports:

• Apple’s flagship iPhone 5s passes 10% adoption; iPhone 5c also seeing strong uptake – December 9, 2013
• Apple’s new iPhone 5s and iPhone 5c selling well in India; outselling Samsung Galaxy S4, says retailer – November 26, 2013
• Wall Street Journal backpedals on iPhone 5c supply chain cuts story – October 17, 2013

It’s a loss leader, Sal. It’s a popular item sold at a loss to attract customers. Learn the concept before you commit any more “journalism,” dunce.

Walmart et al. used Apple’s iPhone 5 as a loss leader last year, too:

• Loss leader: Best Buy drops the price of iPhone 5c to $50 – October 4, 2013
• Best Buy complains to U.S. attorneys general, claims Walmart’s Christmas iPhone 5 loss leader cost it profits – January 4, 2013
• Walmart offering Apple iPhone 5 for $127, iPhone 4S for $47, iPad (4th gen.) for $399 – December 14, 2012

Were iPhone 5 sales “struggling?” No, Sal, they were not. There is quite a difference between discounted products and loss leaders.

According to CIRP, the iPhone 5c accounts for 27% of iPhone sales vs. 64% for iPhone 5s. Last year, also according to CIRP, the iPhone 4s captured 23% vs. 68% for iPhone 5. So, how, exactly, are sales of the 5c “struggling?”

No wonder birdcage liner like the LA Times are floundering. Contact: salvador.rodriguez@latimes.com

Also contact The Los Angeles Times’ Readers’ Representative Office about journalistic standards, practices and accuracy and demand a retraction: readers.representative@latimes.com

Dummy continues, “The iPhone 5s, also new this year, will be available for $127 with a two-year contract, down from its normal price of $199. The 16 GB iPad mini will be available at its normal price of $299 but will come with a $50 gift card. And finally, Wal-Mart will sell $30 Apple iTunes gift cards for $25.”

Read more in the full article here.

[Thanks to MacDailyNews Readers “Sarah” and “Lynn Weiler” for the heads up.]

20 Comments

  1. I approve of this take by MDN, especially the use of the word “dunce”. Lazy, unprofessional, presumptuous, ignorant writers need a taste of the switch on their backsides. Journalism once had standards. Bring them back.

  2. This guy knows nothing. No research, no diversity of views, no counterpoints, no class. The LA Time is part of the Tribune Empire. I worked out of Fort Lauderdale for two years as a Mac Support Specialist. The IT management and staff is extremely anti Apple, not counting me of course. Most of the journalist are good hard working smart people. I guess they got this guy cheap, because of all the budget issues, they’re more worried about saving money, than providing quality journalism.

  3. That’s going to be a trip. I tried to buy an iPhone 5s from WalMart as part of switching my family from
    AT&T to Verizon (3 phones). I was told by the WalMart “genius” that I could only buy two iPhones a month. Went to the nearest Apple Store, had the phone in an hour.

    1. It’s a shame if the 5c really is a sales failure but since it’s been out only three months, I’d think it would be too early to tell and there’s no hard evidence that no one is buying the 5c. However, I’m really glad that so many more consumers are buying the more expensive 5s instead of the 5c.

  4. When you take on Walmart, you are going to lose. Even Apple can’t stop them from doing what they do – sell everything for less. Steve would have never let this happen but, alas – it’s the Tim Cook era and the age of the decline in the company’s once claim to exceptionalism. It is what it has become.

    1. Au contraire, Walmart *employees* are eating the cost of the phone. The Waltons are still among the richest in the USA: “In 2010, six members of the Walton family had the same net worth as the bottom 28% of American families combined.”

  5. Now the main question here is whether Wal-mart will sell these contract-free with the same discount (i.e. $477 for 5c)?

    If that is the case, it would mean that they are essentially taking a hit on these by selling them below wholesale. If not, it would mean that they strong-armed carriers into sharing this discount in order to lure more affluent consumers who aren’t Wal-mart’s usual bargain-basement, price-sensitive deal hunters.

  6. I went to my local WM after reading this story and got a 5c for $27 with 2yr contract. It took about an hour, what with struggling employees and aggressive customers, but I got what I wanted and then spent the remaining $73 in my iPhone upgrade budget in iTunes instead. A win/win for , a loss for WM, and a win for me. Happy Holidays!

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