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Wal-Mart Reportedly To Sell iPhone

Megastore remains mum as rumors swirl

December 9, 2008

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If Santa doesn't bring you a new iPhone, you may be able to pick one up at your local Wal-Mart at an attractive price after the holidays.

A number of technology media reports say the iconic phones will go on sale at Wal-Mart before the end of the year. Computerworld, for example, quotes employees at several Wal-Mart stores as saying they are preparing to sell the phones, though officially, Wal-Mart isn't commenting.

Reports began to surface over the weekend that the iPhone was going downscale, with at least one newspaper reporting that Wal-Mart employees had begun to undergo training in iPhone sales.

The prospect that iPhones would be available through Wal-Mart raises the issue of price. Apple now sells an 8GB iPhone for $199 and a 16GB version for $299. The two second-generation iPhones, introduced in July, sell for half the price of the original models introduced a year earlier.

Just how deep would a Wal-Mart iPhone discount be? No one knows, despite a weekend report that Wal-Mart might sell a scaled down, 4GB model for $99. What is known is there may be plenty of wiggle room.

ConsumerAffairs.com reported in January 2007, six months before the iPhone was introduced, that the early models would carry a more than 50 percent profit margin. Though prices have fallen nearly than much in one year, analysts think more discounting is possible, especially with a high-volume retailer like Wal-Mart.

Even if you are able to buy an cheaper iPhone through Wal-Mart, you'll still have to use AT&T's network. Apple still has an inclusive agreement with the wireless carrier, which requires a two-year contract with the purchase of an iPhone.

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