Holiday shopping for hot items at a bargain price took on a new form this week as rumors flew on the Web about a 4GB iPhone to be available at Wal-Mart for $99. That phone was initially to be rolled out at a $399 price tag.
- Wal-Mart Stores Inc said on Friday it will start selling Apple Inc's iPhone on Sunday, but the popular cell phones that can surf the web will not be priced as low as some anticipated.
Wal-Mart plans to sell the black 8-gigabyte iPhone 3G model, which also holds about 2,000 songs, for $197. The 16-gigabyte model, in black or white, will be priced at $297. All of the phones require a new two-year service agreement from AT&T Inc or a qualified upgrade, Wal-Mart said.
The move gives Apple the chance to reach millions of Wal-Mart shoppers who may not be as familiar with the company's products.
Wal-Mart typically appeals to a lower-income group of shoppers than those who buy Apple's Macintosh computers, iPods and iPhones, which are typically more expensive that other PCs and music players. But the world's largest retailer has also lured new customers seeking low prices in a recession.
Wal-Mart used discounts to draw in millions of cash-strapped shoppers during the holiday season. It was among the first to advertise its deals this fall, including hot electronics such as flat-screen televisions.
Numerous websites had previously speculated that Apple would offer a 4-gigabyte model of the iPhone for $99 at Wal-Mart stores. But the phones being sold at Wal-Mart are the same ones already on the market, for about $2 below the prices offered at other locations.
AT&T, the exclusive U.S. wireless service provider for iPhone, currently sells the cheapest version for $199 for a model with 8 gigabytes of storage, and $299 for the 16-gigabyte version. AT&T declined to comment.
Not quite as cheap as BSAMS predicted, but close.
