Interested in picking up Apple Inc.'s new iPhone 5C? You
might want to consider dropping by Wal-Mart — the concession department store
has lowered the price of Apple Inc.'s most colorful smart-phone to just $45
with a two-year contract.
Wal-Mart was already selling the iPhone 5C for $79 — $20
below Apple Inc.'s MSRP — and has now cut the price by another $35. Why the
prices drop? We're pretty sure it's related to Best Buy's current promotion of
the iPhone 5C for $50 (thanks to a $50 Best Buy gift card promotion).
While Best Buy's price cut will last through the weekend,
Wal-Mart tells us that "consumers can expect this low price throughout the
festive period." That's big news for users who are on the lookout for
adding or upgrading an iPhone to their wireless plans in the next few months.
This isn't the first time Wal-Mart has undercut Apple Inc.'s
prices (with a two-year contract) on the iPhone. This year in the closing month
of June, the corporation has made first-time cuts to the prices of their iPhone
5 and iPhone 4S.
In the past, Apple Inc. has severely limited the degree to
which retailers can reduce its products. For the most part since they have been
industry leaders and have already been best sellers in their market-share.
As we said earlier, Apple Inc. has severely limited the
degree to which retailers can price cut its products. The fact that Wal-Mart
has made this kind of price slash, within two weeks after the iPhone's launch,
seems to point towards that Apple Inc.'s position on reducing — at the very
least for phones —altered tremendously. A lower price point is also likely to
drive more cost-conscious visitors to the iPhone shelves — and in turn, to
Wal-Mart stores.
We don't get the impression that Wal-Mart is dropping the
price because of lack of demand for the iPhone 5C, especially after Apple Inc.
released that it sold 9 million iPhone 5S and 5C devices in its initial
weekend. Somewhat, it is likely on the subject of chasing wireless contract
sales.
The truth is; retailers like Wal-Mart and Best Buy don't
make as much money from the subsidized devices as they do from new two-year
agreements. That's one reason online retailers — most notably Amazon — is often
willing to sell subsidized devices at such a price cut. It's not about selling
phones; it's about signing users to new contracts.
Author by www.pairsocial.com
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