Walmart iPhone probably happening, probably not for $99

We've been hearing rumors of an iPhone at Walmart for a while now, and the only thing that was even mildly interesting about the unlikely pairing was that there was supposedly going to be a $99 4GB model. Well, now we hear that they'll indeed be selling the phone, but (as the ad above would seem to indicate) it's going to be a $197 8GB model -- about 2 bucks cheaper than you can get them for at an Apple or AT&T store, with no mention of a 4GB version at all. So, you're telling us we're going to be able to get this phone for (almost) exactly the same price as before, but now we can buy it at a store where we can also pick up Slim-Fast in bulk and possibly die in a retail trampling? We'll pass.

[Thanks, Mike H., Via PC World]

[wako @ Dec 8th 2008 9:32AM]

i wouldve passed simply because the phone is 4GB

[Saad Rabia @ Dec 8th 2008 9:34AM]

I would've passed simply because the phone is an iPhone!

[KarlW @ Dec 8th 2008 9:56AM]

@Saad: You're as bad as iEye

A $99 model would have done well for Apple. It would've been a smart business move. I seem to recall Steve saying that the reason Apple don't make cheap products is because they feel they need to sacrifice quality. Phones are subsidised, meaning that Apple can price the hardware lower. Many people will be satisfied by a 4Gb model as an entry level model. I'd be surprised if this doesn't come out at Macworld. It's a good opportunity for Apple to try and appeal to those on a lower budget.

[jkeilwilson @ Dec 8th 2008 10:22AM]

@saad: You troll.

[Saad Rabia @ Dec 8th 2008 10:03AM]

@ KarlW: You are an iEye and a Clak combined.

[iEye @ Dec 8th 2008 10:18AM]

News of my banning was accurate but highly exaggerated

I'm back baby!
Call JL5-... oh wait

[Anthony @ Dec 8th 2008 10:19AM]

I would've passed simply because it's sprawlmart.

[sam @ Dec 8th 2008 10:30AM]

@Karl - if a 4GB model at $100 would have been a 'smart business move' then how about pricing the 8GB model at $130 or something? Because I'm pretty sure the difference in memory size doesn't cost anything like $100.

Sure they could've used the memory size to differentiate/encourage people not to buy the one they make less money on - a strategy that worked real great for Sony with PS3 - but what I'm getting at is, if they are only willing to price it down (to customers) TWO DOLLARS then taking out 4GB RAM doesn't seem likely to suddenly make them willing to drop another $98.

[iEye @ Dec 8th 2008 10:35AM]

@Sam;

Because Apple knows that most of the rich drones that buy Apple products don't know hardware Value, they only see apparent value, as in double the memory in an 'i' device should warrant double the price...

Now the aware consumer knows that retail of 8Gb flash memory is max $20 so Apple is making a bunle from a simple memory upgrade and a laser engraving...

Why do you think that Apple was so quick to cancel the 4GB 1st gen iPhone after the 1st price cut? it was too much of a give away!

now with the weak economy they need some way tojustify a low-end price cut without leaving the sheep feeling taken again!

There is no way Apple could offer a $0 iPhone without causing another so called "Early adopter" fiasco...

[JohnTitor @ Dec 8th 2008 10:50AM]

I would've passed simply because that's a Dell CRT

[Matt Smith @ Dec 8th 2008 11:02AM]

@ sam - Brilliant! Seriously... you hit the nail on the head.

I for one am hoping for the $99 4GB and $140-150 8GB model coming soon...

[Matt Smith @ Dec 8th 2008 11:11AM]

Wait @ sam and myself... they do price the 16GB phone $100 more than the 8GB... how do you factor that in? It's only 8GB more... shouldn't cost more than $40 or $50 bucks more max I would think. So Apple must be up to something.

[Shinigami @ Dec 8th 2008 11:23AM]

$99 iPhones sold out before they hit the shelves :)

[KarlW @ Dec 8th 2008 11:33AM]

@Sam If Apple saved some money by cutting the space to 4Gb, given that component prices are falling, they would probably still be able to keep a really high margin. The margin wouldn't take too much of a hit. Since the contract price will stay the same, the subsidy (ideally, depends on Apple's deal with AT&T) would stay the same. That means Apple could do this at little or no hit in current sales margins. Then consider the volume that a $99 iPhone is likely to sell (a lot).

If they dropped the price on the 8Gb one, their margins would take a hit. The current model appears to be selling well, so from a business PoV, there's no reason to drop the price.

[maveric101 @ Dec 8th 2008 12:10PM]

iEye, sometimes i think you suffer from multiple-personality disorder.

[JerkfacedFed @ Dec 8th 2008 12:21PM]

saad ftw. apple fanboys eat poop

[wako @ Dec 8th 2008 12:46PM]

stop replying to my post, you're spamming the shit out of my inbox!

[Technex @ Dec 8th 2008 1:25PM]

I love spam, you love spam..... I love spam, you love spam..... I love spam, you love spam.....

Join in now with me guys and gals!!

[haX0r @ Dec 8th 2008 4:28PM]

iEye is like a scorned ex-lover that got the best sex in their life = just won't go away.

[Fant @ Dec 8th 2008 9:33AM]

Does apple have some sort of retail clause that you cant sell any iphone accessories unless you carry the iphone? Because i've noticed in other stores they just have ipod accessories but not iphone accessories. Even tho Walmart wont make much money no the phone sales, this may allow them to sell accessories which are alot more profitable.

[who? @ Dec 8th 2008 9:36AM]

No, you're just seeing what you want to see. Target has half and isle of iPhone only products.

[Timothy @ Dec 8th 2008 5:57PM]

My Walmart has iPhone accessories.

[AJ in the East Bay @ Dec 8th 2008 9:34AM]

$99 worth of FAIL on the Internets...

[zioncat @ Dec 8th 2008 9:35AM]

You know even if you could get it for 99 dollars your monthly bil would kill you. I had an instinct with sprint but go rid of it because my monthly bill was too high. These top of the line smart phones are made to where you have to have the mobile web casusing your bill to go sky high.

[who? @ Dec 8th 2008 9:39AM]

No kidding! Engadget loves to report on the price you'll pay upon checkout, and always neglects to mention that it will end up costing you $2000 (give or take) by the end of your contract!

[sndmn23 @ Dec 8th 2008 9:52AM]

Why would you want an iphone or Instinct without data? Just wanna look cool?

[iEye @ Dec 8th 2008 9:56AM]

What are you all talking about?

You buy the alleged 4GB iPhone for $99, sign some shite AT&T contract, get a free wal-mart gift card...
Wait...........wait.............wait 31 days, then cancel the contract and pay the $200 ETF.

Go back to Wal-dealies and pick up an AT&T $9.99 motorola shite prepaid phone and dump the sim in it and voila! prepaid iPhone with no monthly bills

[Paul @ Dec 8th 2008 10:29AM]

Wait, iEye got highest ranked?

What is this world coming to!?!

[iEye @ Dec 8th 2008 10:29AM]

@Paul

According to Keanu reeves, the END!

In Theaters Dec 12 2008!

[trevor @ Dec 8th 2008 10:57AM]

and again, iEye...

it's ok to type "shit"

[brando_commando @ Dec 8th 2008 11:13AM]

@iEye - Not so fast!

The iPhone must be activated by both AT&T and Apple before it can work on AT&T's service. This translates directly as follows ---> No iPhone plan, No service.

And I'll save you the embarrassment of mentioning the word "jailbreak" - No iPhone 3G Unlock exists (yet). This INCLUDES to AT&T itself.

Stop giving out false info. You might waste someone a lot of money.

[KarlW @ Dec 8th 2008 2:39PM]

Two of his comments got highest, and one is highly ranked.

I knew those re-education camps were real! Everyone said I was crazy, but now look!

[dhaasgob @ Dec 8th 2008 2:48PM]

@bando

Wow, you must have forgotten the whole 'once an AT&T-locked iPhone 3G has been activated through iTunes, it works with any AT&T SIM' tidbit found out back in July/August-ish.
Here, a TUAW news post confirming it: http://www.tuaw.com/2008/09/13/confirmed-3g-iphone-works-out-of-the-box-with-payg/
And another site: http://www.phonenews.com/iphone-owners-freed-from-activation-hacking-details-drop-bricking-process-detailed-3752/

iEye was right. You can make yourself a prepaid iPhone 3G by buying the phone, activating it, ETF out after 30 days, and plugging in a prepaid SIM. There are people in various forums that do so already.

[Geek45 @ Dec 8th 2008 6:51PM]

iEye? Highest ranked?
maybe because he had the same idea that thousands of other people had.... LOSER!

[joe23521 @ Dec 8th 2008 9:37AM]

Not that I'm a Walmart lover or anything, but that cheap shot at the end there is highly inappropriate, especially when taken at the expense of a person's death.

[iEye @ Dec 8th 2008 9:58AM]

Yea! Not to mention the 'Slim Fast'...

[Paul @ Dec 8th 2008 10:30AM]

Don't worry about it. A lot of the writers on this site aren't nearly as funny as they think they are.

[eggothewaffle @ Dec 8th 2008 9:39AM]

Would there really be people who would somehow be too stingy to spend $200 on a contract phone, but have absolutely no problem paying at least $70 a month to use that phone?

Or are they as stupid as the people comparing the $200 8GB iPhone to the $700 32GB Nokia N97?

[who? @ Dec 8th 2008 9:45AM]

Yes AND yes:

Consumers are, in the long run, stupid. The majority only see what they have to pay upon checkout. That's also a major part of the problem with the housing market.

As for your second point, they should be comparing the N97 @ $700 to an iPhone @ $424, because that's the price after an early termination of your contract + the first month's bill.

[eggothewaffle @ Dec 8th 2008 9:47AM]

"Consumers are, in the long run, stupid. The majority only see what they have to pay upon checkout. That's also a major part of the problem with the housing market."

I had a feeling this was going to be why.

[BananaBoat @ Dec 8th 2008 5:26PM]

464 dollars...and then you've got no service on your phone. That would be a smart move. I guess you could drop one plan lower and pay 15 a month instead of 30 a month (just for data)...but the extra 264 dollars you've spent to terminate would completely negate the savings most likely.

If Wal-Mart sells them, it's only going to be able to sell them in markets where there is no AT&T store or Apple Store (I mean, they'll carry them in markets that do, but who would buy from them?). It would be nice if the power of wal-mart could somehow bring us an Iphone with a cheaper data plan, but it's not going to happen.

[hi im a iphone @ Dec 8th 2008 9:41AM]

Hi does the 4gb iphone have MMS,video recording,copy and paste,landscape sms/email ?

[joe23521 @ Dec 8th 2008 9:46AM]

What part of "iPhone" didn't you understand?

[who? @ Dec 8th 2008 9:47AM]

Yes to the last one, yes to the others w/jailbreak.

[ZIG @ Dec 8th 2008 9:50AM]

buddy, read the article again.. the 4GB is a no go. IT DOESN'T EXIST.

[i1patrick @ Dec 8th 2008 10:14AM]

Yes, the 4GB version for $99 will exist. Wal-Mart will sell it along with the 8GB version. The photo shown in this article is intended to throw people off the trail. There's a Reuters story out today that Wal-Mart is going forward with both.

http://tech.yahoo.com/news/nm/20081208/tc_nm/us_apple_walmart

[dhaasgob @ Dec 8th 2008 3:00PM]

@i1patrick

Somehow, you must have missed the mentions of it being speculated and not confirmed by Apple or Wal-Mart even in that article:

"Numerous websites have speculated in recent weeks that Apple will offer a 4-gigabyte model of the iPhone for $99, which holds about 1,000 songs, at Wal-Mart stores.

CNBC said on Monday that while Apple would be selling the phone at the discount retailer, it would not cost as little as $99.

An Apple spokesman said the company does not comment on rumors or speculation."

So, this doesn't mean it's *true or false* that a $99 4GB will exist. I seriously doubt it will though.

[Volker @ Dec 8th 2008 9:47AM]

meh.

[ironman @ Dec 8th 2008 9:48AM]

hey, $2 is $2...so for the price of an iphone at the AT&T store, you could get an iphone and a week's worth of groceries at Wal-Mart. I'm there.

[johnjj @ Dec 8th 2008 9:56AM]

This is going to do wonders for Apple's upscale image!