Discounted iPhone looks likely for Wal-Mart, but for $197, not $99

By Jacqueline Emigh | Published December 8, 2008, 7:28 PM

An impending Wal-Mart ad leaked this week indicates that the iPhone will indeed go on sale at Wal-Mart -- except that it'll probably be the 8 GB version, and for $197.

While none of three companies involved is publicly commenting yet, an increasing body of circumstantial evidence suggests that Wal-Mart really will start selling the iPhone 3G on December 28 -- but that Wal-Mart's iPhone will be the 8 GB version, priced at $197, only $2 less than AT&T's price tag of $199 with a two-year service contract.

Contrary to rumors circulating last week, it appears that Wal-Mart will not be offering a 4 GB iPhone 3GB for the more affordable price tag of $99.

As previously reported in BetaNews, accounts of a possible 4 GB iPhone 3G originated in the Boy Genius Report blog before being picked up by major media last week.

In October, BGR published an internal memo from Wal-Mart announcing that Wal-Mart had reached agreement with Apple to market an iPhone at "Wal-Mart stores and Wal-Mart-managed Sam's Club Connection Centers nationwide beginning December 28."

Then last Thursday, BGR cited unnamed sources as stating that Apple might be looking at coming up with a vastly upgraded version of its phased out 4 GB iPhone and permitting Wal-Mart to sell a 4 GB 3G device for just $99 with a two-year contract.

BGR didn't seem to trust those sources entirely, however. "Don't hate us if this doesn't happen," readers were cautioned. The reports actually seemed somewhat feasible, given a similar deal struck recently by Wal-Mart for the Android-based G1 phone, along with current pricing for higher-end models of Apple's iPhone 3G.

Wal-Mart has already been selling G1s for $148.88, or about $31 less than wireless carrier T-Mobile is charging for the same phones. Now, however, an impending Wal-Mart advertisement leaked to MacRumors and published there gives the iPhone's price at Wal-Mart as $197.

Unnamed Wal-Mart store employees have reportedly told other publications that Wal-Mart will start selling an iPhone at the end of December.

But Kelly Cheeseman, a Wal-Mart spokesperson, issued a statement to BetaNews on Friday which neither confirms nor denies intentions by Wal-Mart to sell an iPhone in its stores.

Apple spokespersons contacted by BetaNews and other publications have been temporary unavailable for comment.

Mark Siegel, an AT&T spokesperson, told BetaNews today that AT&T is not commenting on the Wal-Mart rumors, and referred BetaNews to Apple instead. AT&T's Siegel, though, did comment on published reports that AT&T will be standardizing on a single mobile OS for its smartphones, telling BetaNews that these accounts are incorrect.

Comments

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Wal-Mart are probably being used as an outlet to flog all the old stock of 8GB prior to the 32GB version being released.

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If Walmart sold a $99 iPhone the average customer still couldn't afford it. You're looking at a $70+/month in fees.

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Wow, selling cheap, buggy, outdated crap for way more than it's worth. What a great business plan. From my "favorite" store too.

I hope they both die in a fire.

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Yeah, the iPhone is crap - that's why everyone else is falling over themselves to copy it.

What a ditz.

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Yes, the phone itself is indeed crap... or at least crappier than it could/should be.

You know, along those same lines of you repeatedly stating how much Apple could rise to unprecedented levels of success and greatness if only Apple wouldn't [insert insane restriction put in place by world's most famous control freak]... which I've always happened to agree with, by the way.

The idea of the iPhone however, and all that it could be... that's a smash hit! That's what everyone else is copying. If Jobs hadn't opted to bury his head in the sand and forfeit a multitude of opportunities to capitalize on enterprise customers looking for a slick interface, RIM wouldn't be poised to barricade Apple indefinitely with the Blackberry Storm, even more than they already have in that market.

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It is, it's replacing the V3 which was crap too. But just because people see it and it looks all shiny and new they have to get it.

People are sheep and deserve the crap products they buy.

http://www.thebestpagein...erse.net/c.cgi?u=iphone

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Funny how it's crap now but it somehow miracuously wasn't a year or so ago. Hmmm. [rubs chin]

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Oh no, now everyone will look important and successful with their cheaply priced iPhones......... no fair. I was special and now I'm not anymore.

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The tragedy of it! and I was just getting used to everyone looking up to me because of my phone! Damn it!

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Still trolling the mall food courts worrying about what others have so you can act smug?

Stick to the restroom stalls...literally

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foxfyre .............. Another genius who doesn't understand sarcasm.

You'll never understand, kid. My problem is with broke people who want or need to appear wealthy. You know, about 95% of American adults.

The same guy who spends a weeks paycheck on an iPhone and Abercrombie clothes with $34 in the bank...... poor zombie morons.

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Actually, I love the mall. The Apple store is always packed with minorities that can't afford thier products but have to play with everything in the store.

No one ever comes out carrying a bag. Douches.

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To suggest foxfyre doesn't understand sarcasm is akin to suggesting that Steve Jobs isn't an insecure control freak.

Poor zombie morons or wealthy zombie morons... they're both still morons at the end of the day, regardless of whether or not they could actually comfortably afford "what everyone else has".

People who earn minimum wage or slightly higher are no less entitled to expensive products than people who make six figures a year. It's not always about "appearing wealthy", and you don't have to be "wealthy" to have "good taste" (whatever that means these days).

People struggling to save up enough money to purchase products you claim they don't deserve... versus people buying everything they want with outrageous salaries that they probably don't deserve in the first place. Hmm... I wonder who's going to take better care of those products and actually understand the value of what they've taken home to enjoy.

I've never had jobs that made me privy to large salaries, but I have plenty of nice things. However, I've become accustomed over the years of living practically paycheck-to-paycheck. It's a personal decision, but not one derived from a need to "appear" anything. I've simply found my comfort zone, and I'm quite content. I have a desire to have nice things and I act on it on a regular basis, but only when it doesn't infringe on my other financial obligations.

As long as the bills are paid every month, screw what anyone else thinks.

EDIT: I felt the need to state that I wasn't necessarily contradicting what you had to say. I pity those same fools, too. It's just usually never as cut-and-dried as it may seem. :)

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Typo, 3rd para: "4 GB iPhone 3GB" Should be 3G not 3GB.

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MacRumors.com is going to get SUED!! you can leak ANY but apple stuff!! GET IT!

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