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Sam's Club rumored to offer Apple's iPhone 4 at new low price of $147

post #1 of 31
Thread Starter 
A leaked internal memo from wholesaler Sam's Club shows that the company is set to offer Apple's latest-generation 16GB iPhone 4 for just $147 with a two-year AT&T contract.

In an internal memo leaked anonymously to Engadget, it appears Sam's Club will offer the 16GB iPhone 4 for $147 until Christmas day. The picture of the memo also mentions the 8GB iPhone 3GS available for $47 with a two-year contract.

"We will be offering these devices at this outstanding Member value until Christmas Day," the memo reads. "Please reprint your flags and have a great sales weekend."

The discount is the lowest yet seen for Apple's smartphone, beating a promotion held earlier this month by Radio Shack. That sale saw $50 knocked off the price of the iPhone 4, bringing the 16GB model to $149.

That promotion proved to be extremely successful for both Radio Shack and Apple, as the retailer almost completely sold out of iPhones nationwide. AppleInsider contacted a number of Radio Shack stores across the U.S. and found that all but one had no stock of the iPhone 4.



The Sam's Club price is $2 lower than Radio Shack's promotion, but also requires a membership to the warehouse club. Sam's Club, a subsidiary of Walmart, recently began selling the iPhone, along with Apple's iPad.
post #2 of 31
ick... but it'll cost a lot more to get the stink of Sam's club off ya.
post #3 of 31
all this aggressive pricing including for radio shack tells me NOT to buy now
the better deals like the monthly plan will be even better after january,
no doubt other carriers are coming on board let ALL of them
compete with my next 2 year contract.
who cares if you can save 50 dollars on a phone if the plan is still over priced.
you can get an unlimited data, text , voice from walmart for $45/m
the cost isn't the phone, people its the plan.
if verizon through walmart can offer a fee free simple payment of $45 then we shouldn't have to pay much more even with a subsidized iPhone and all those ATT fees ....whew


buying an iPhone now is just a waste of money

i'll just wait.
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post #4 of 31
Looks like Apple is trying to learn more about the price-elasticity of demand for the iPhone.

Also, this is another sign that Apple is totally committed to winning the mobile platform "war".
post #5 of 31
I am all for lower prices, but won't this hurt Apple just a bit. Like it or not, Apple is a status symbol...they also make amazing products. If you start offering their products for cheap, it's no longer something you have to save up for. You'll be able to go to Costco or Sam's Club and get it for $.01 (of course not now, but they were selling some high end smartphones for that much). Apple is expensive, but mandating their prices make them worth something...

Do you guys think this is a smart move on the value of Apple? Even if it is to win the Mobile OS war, you don't want to turn yourself into Android...
post #6 of 31
Apple is still getting full price regardless of what price retailers sell the iPhones. iPhones are already free in several countries by signing a contract at a high monthly bill. It's no different than US retailers slashing prices for the iPhone. It's about attracting and getting more people in to their stores and hoping consumers will walk out of there with more than just an iPhone.
post #7 of 31
Quote:
Originally Posted by Habañero View Post

ick... but it'll cost a lot more to get the stink of Sam's club off ya.

Quote:
Originally Posted by Chaseism View Post

I am all for lower prices, but won't this hurt Apple just a bit. Like it or not, Apple is a status symbol...they also make amazing products. If you start offering their products for cheap, it's no longer something you have to save up for.

You people have problems.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply
post #8 of 31
I feel for Chinese people. There're still long waiting lists there.
post #9 of 31
I may be wrong but I think that all these low priced promotions are something Apple has allowed in good faith to help At&t pull in a few more boat loads of customers before the Verizon iPhone comes out.
post #10 of 31
Quote:
Originally Posted by TechManMike View Post

I may be wrong but I think that all these low priced promotions are something Apple has allowed in good faith to help At&t pull in a few more boat loads of customers before the Verizon iPhone comes out.

Keep dreaming.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply
post #11 of 31
Quote:
Originally Posted by Tallest Skil View Post

You people have problems.

Quote:
Originally Posted by Chaseism View Post

I am all for lower prices, but won't this hurt Apple just a bit. Like it or not, Apple is a status symbol...they also make amazing products. If you start offering their products for cheap, it's no longer something you have to save up for. You'll be able to go to Costco or Sam's Club and get it for $.01 (of course not now, but they were selling some high end smartphones for that much). Apple is expensive, but mandating their prices make them worth something...

Do you guys think this is a smart move on the value of Apple? Even if it is to win the Mobile OS war, you don't want to turn yourself into Android...


----

Wow, my kids and I have iPhone 4s and we shop at Walmart. I also use a PC. A cheap one. How about that? What status symbol? I use my phone because I really like it. That's the only reason.
post #12 of 31
Quote:
Originally Posted by Habañero View Post

ick... but it'll cost a lot more to get the stink of Sam's club off ya.

Makes Crazy Eddie's Christmas deals seem tame. (I miss those annoying ads.)
post #13 of 31
Quote:
Originally Posted by Wurm5150 View Post

Apple is still getting full price regardless of what price retailers sell the iPhones. iPhones are already free in several countries by signing a contract at a high monthly bill. It's no different than US retailers slashing prices for the iPhone. It's about attracting and getting more people in to their stores and hoping consumers will walk out of there with more than just an iPhone.

Unless you have specific information that this is the case, I don't think it's at all clear that this is necessarily the case for either the Radio Shack or the Sams Club discounts. It's one thing for a carrier to discount the phones in order to make money off a long term service contract. But it's quite another for a retailer to discount when they have no other way of recouping the lost money.

I think it's more likely that Apple is behind the Sam's Club and Radio Shack discounts. As I noted in my earlier post, Apple may be trying to learn more about the price-elasticity of iPhone demand in the United States.
post #14 of 31
Quote:
Originally Posted by Blastdoor View Post

I think it's more likely that Apple is behind the Sam's Club and Radio Shack discounts. As I noted in my earlier post, Apple may be trying to learn more about the price-elasticity of iPhone demand in the United States.

Maybe. But there are other possibilities:

1) Sam's is selling iPhones as a loss-leader, to get people into the stores. Perhaps you weren't aware of this, but some stores are selling iPads at unusually low prices as well. I doubt Apple needs any pricing help to sell iPads at this time - it can't make them fast enough as it is. Same thing: A deeply-discounted iPad gets people in the store.

2) This promotion is being subsidized (partly or fully) by AT&T, which is coming to the end of its exclusivity deal with Apple.

3) This promotion is being subsidized (partly or fully) by Apple, but not as an experiment in 'price elasticity'. Instead, it simply wants to clear out older (3G) iPhone models.

Apple may indeed be interested in selling a lower-cost iPhone down the road. But that time may be years away, and may require a new generation of products. Take for example the iPad, which held the same relative price for years until Apple decided the time was right for lower-cost models.
post #15 of 31
Quote:
Originally Posted by patrickf View Post

----

Wow, my kids and I have iPhone 4s and we shop at Walmart. I also use a PC. A cheap one. How about that? What status symbol? I use my phone because I really like it. That's the only reason.

Why'd you quote me? I'm on your side!

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply
post #16 of 31
Quote:
Originally Posted by Blastdoor View Post

Unless you have specific information that this is the case, I don't think it's at all clear that this is necessarily the case for either the Radio Shack or the Sams Club discounts. It's one thing for a carrier to discount the phones in order to make money off a long term service contract. But it's quite another for a retailer to discount when they have no other way of recouping the lost money.

I think it's more likely that Apple is behind the Sam's Club and Radio Shack discounts. As I noted in my earlier post, Apple may be trying to learn more about the price-elasticity of iPhone demand in the United States.

I doubt that very much. Most retailers contracts have "most favored nation" clauses. That means other retailers can't buy for less than they can for the same terms. There are also laws requiring this. I was involved some years ago in an e-commerce operation and because we were going to buy so much product, I insisted on lower wholesale prices from the distributors. Turns out because of a lawsuit, they couldn't do that. The wholesale price could only be based upon how much product was purchased in a single order (not even how many units or how many dollars we would buy over the course of a year.) (Of course there are ways around this like co-op advertising credits, but basically, that's the way it works.)

It's not clear to me that Radio Shack and Sam's Club aren't making money on the long term service contract, but even if that's the case, it doesn't matter. They don't have to make money on the iPhone. The purpose of these discounts is to get people into the store to buy other things - they are loss leaders. That's why the Sam's Club promotion ends at Christmas.

I happen to agree with those who think that selling the iPhone through these mass market distributors debases the product. One of the main reasons why Apple opened its own retail is because they were unhappy with how their products were presented and supported in retailers like CompUSA and Circuit City. But they now think Radio Shack and Sam's Club does a good job?

I've never been in a Sam's Club, but I have been in a WalMart twice. And what I've found there is a few good prices surrounded by mostly bad prices, at least for the products that I would consider buying. Electronics, photography and media were all priced higher for name brands than J&R in Manhattan, a large, but independent retailer with a single store. And J&R pays its staff far more than minimum wage. Stores like WalMart and Target get a reputation for low prices by having absurd sales on few select items, but it's actually a big con. Most of the decent products I see in these places are selling for list price. Even when Circuit City went out of business, their "going out of business" prices were higher than everyday prices at B&H Photo/Video (NYC) or J&R, yet people were walking out with the stuff like they were giving it away. Especially when it's so easy to check prices on the web, you'd think people would know better.
post #17 of 31
Not trying to diss anyone at all and I apologize if anyone was offended. I guess, let me phrase it a different way.

In my experience in cell phone industry, people have come to correlate the price of the handset with the quality of it. Now I'm not talking about tech junkies like us, but more so average consumers. It used to be that the free or cheap phone was the way to go because back then, the only thing everyone did was call. But nowadays, people often regret the free phone they got because "you get what you pay for" as they regretfully say to me. They saw how that free phone was a lower quality than the ones you'd actually spend some money on in both quality and functionality.

Even more recently, I've watched people save up for the more expensive smartphone instead of going for the cheaper one because of their stigma with cheap or free phones, without much care of the functionality of the phone itself. They still see price as a sign of quality.

So my question to you guys, restated, is do you think that the Apple Brand can outweigh people's stigma on cheap or free phones if the iPhone's price is lowered?
post #18 of 31
Quote:
Originally Posted by Mister Snitch View Post

Maybe. But there are other possibilities:

1) Sam's is selling iPhones as a loss-leader, to get people into the stores. Perhaps you weren't aware of this, but some stores are selling iPads at unusually low prices as well. I doubt Apple needs any pricing help to sell iPads at this time - it can't make them fast enough as it is. Same thing: A deeply-discounted iPad gets people in the store.

2) This promotion is being subsidized (partly or fully) by AT&T, which is coming to the end of its exclusivity deal with Apple.

3) This promotion is being subsidized (partly or fully) by Apple, but not as an experiment in 'price elasticity'. Instead, it simply wants to clear out older (3G) iPhone models.

Apple may indeed be interested in selling a lower-cost iPhone down the road. But that time may be years away, and may require a new generation of products. Take for example the iPad, which held the same relative price for years until Apple decided the time was right for lower-cost models.

Hasn't (I don't know) been against stores selling below a certain amount? So that's why iPods are at full price, but you can get a gift card?

What I mean to say is that it appears Apple is indeed behind allowing retailers to cut prices on iPhones. Which is a HUGE thing. Must be scared of Android.
post #19 of 31
Quote:
Originally Posted by patrickf View Post

What I mean to say is that it appears Apple is indeed behind allowing retailers to cut prices on iPhones. Which is a HUGE thing. Must be scared of Android.

Actually there is nothing to suggest that Apple 'approves' of these price games. I would imagine that they are allowed because Apple got their full cost and ATT isn't playing favs and upping their subsidy to cover the discount.

Nor does this have anything to do with Verizon etc getting the iPhone anytime soon.

The folks talking about loss leaders are on the money. These places are willing to lose their cut in order to get folks into their locations.

It is also worth bringing up that we don't have any numbers. This wildly successful promotion for Radio Shack may have sold out within days but are we talking 5 phones per size for each store, or 100 each size. And where they really at all locations or are there only select stores that handle phones. If it turns out that only 20% of stores received phones, that could make things a bit more tame

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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post #20 of 31
Interesting... Looks like iPhone4 Bogo can't be too far behind.
"Why iPhone"... Hmmm?
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"Why iPhone"... Hmmm?
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post #21 of 31
Quote:
Originally Posted by Chaseism View Post

I am all for lower prices, but won't this hurt Apple just a bit. Like it or not, Apple is a status symbol...

Do you guys think this is a smart move on the value of Apple?

Given that iPhones have already become as 'common' as Toyota Camrys/Honda Accords, such delusions of status/grandeur no longer apply.

Most Apple products (e.g iPod/iPhone) are little more than appliances at this point.
"Why iPhone"... Hmmm?
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"Why iPhone"... Hmmm?
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post #22 of 31
Quote:
Originally Posted by Blastdoor View Post

Looks like Apple is trying to learn more about the price-elasticity of demand for the iPhone.

Also, this is another sign that Apple is totally committed to winning the mobile platform "war".

Apple has nothing to do with WALMART/SAMS CLUB pricing.
WALMART buys them and sells them at the best price it can.

But you are correct that Apple is determined to win the mobile war.
Steve does not want a repeat of the Mac vs PC war.
We will see the battle lines redrawn in January.
post #23 of 31
Quote:
Originally Posted by Chaseism View Post

Not trying to diss anyone at all and I apologize if anyone was offended. I guess, let me phrase it a different way.

In my experience in cell phone industry, people have come to correlate the price of the handset with the quality of it. Now I'm not talking about tech junkies like us, but more so average consumers. It used to be that the free or cheap phone was the way to go because back then, the only thing everyone did was call. But nowadays, people often regret the free phone they got because "you get what you pay for" as they regretfully say to me. They saw how that free phone was a lower quality than the ones you'd actually spend some money on in both quality and functionality.

Even more recently, I've watched people save up for the more expensive smartphone instead of going for the cheaper one because of their stigma with cheap or free phones, without much care of the functionality of the phone itself. They still see price as a sign of quality.

So my question to you guys, restated, is do you think that the Apple Brand can outweigh people's stigma on cheap or free phones if the iPhone's price is lowered?

I think you are confusing price (cost to the buyer) with quality.

Savvy buyers determine quality in several ways; research; comparative evaluation; product/company reputation; experience of friends and contemporaries; advertising, etc.

Once quality is determined, choice is reduced to among those quality products that best serve the buyers needs.

Finally, the savvy buyer shops for a bargain.

Bargain == Quality at a Good Price!


Conversely, you can buy poor quality products at what appears to be a good price, but they never satisfy your needs. Then you repeat the cycle and end up spending more than if you got a quality product at normal price -- let alone a Bargain.


Apple's products still have the same retail price as always, and offer quality at that price.

Some retailers offer these at below retail prices -- a bargain.

Bargain == Quality at a Good Price!


The quality of the product is unchanged.


/consumerism 101

.
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post #24 of 31
Quote:
Originally Posted by DaHarder View Post

Interesting... Looks like iPhone4 Bogo can't be too far behind.

Isn't it interesting how DaHarder "lights up a room"...

... when he leaves it?

.
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"The perfect [birth]day -- A little playtime, a good poop, and a long nap." - Tomato Greeting Cards -
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post #25 of 31
This is nothing new. Apple occasionally has used Sams Clubs to get rid of some inventory at slightly reduced pricing.

Quote:
Originally Posted by AppleInsider View Post

A leaked internal memo from wholesaler Sam's Club shows that the company is set to offer Apple's latest-generation 16GB iPhone 4 for just $147 with a two-year AT&T contract.

In an internal memo leaked anonymously to Engadget, it appears Sam's Club will offer the 16GB iPhone 4 for $147 until Christmas day. The picture of the memo also mentions the 8GB iPhone 3GS available for $47 with a two-year contract.

"We will be offering these devices at this outstanding Member value until Christmas Day," the memo reads. "Please reprint your flags and have a great sales weekend."

The discount is the lowest yet seen for Apple's smartphone, beating a promotion held earlier this month by Radio Shack. That sale saw $50 knocked off the price of the iPhone 4, bringing the 16GB model to $149.

That promotion proved to be extremely successful for both Radio Shack and Apple, as the retailer almost completely sold out of iPhones nationwide. AppleInsider contacted a number of Radio Shack stores across the U.S. and found that all but one had no stock of the iPhone 4.



The Sam's Club price is $2 lower than Radio Shack's promotion, but also requires a membership to the warehouse club. Sam's Club, a subsidiary of Walmart, recently began selling the iPhone, along with Apple's iPad.
post #26 of 31
Quote:
Originally Posted by Tallest Skil View Post

Keep dreaming.

Do you have a better theory? You say that like you're pretty sure it's not. I'm not saying I'm %100 right but it is a theory none the less.
post #27 of 31
Quote:
Originally Posted by TechManMike View Post

Do you have a better theory? You say that like you're pretty sure it's not. I'm not saying I'm %100 right but it is a theory none the less.

I don't believe the VeriPhone will come out until the standard launch in June at the earliest, so it wouldn't matter.
I don't believe Apple has any "good faith" in AT&T, and hasn't since just after the launch of the 3G.

Here's my theory: Apple is simply expanding the iPhone market as they did the iPod. If they have more avenues of distribution, they'll have more avenues of distribution and parity for future updates. If the AT&T iPhone is available from ten resellers, the AT&T/Verizon iPhone'll be available from all ten of them as well. It's just expansion. The iPod wasn't sold by every Tom, Dick, and Harry on its launch, and look at it now.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply
post #28 of 31
There sure are a lot of comments about a rumor that apparently no one bothered to get up off their butts today and check it out. I'll drop by a local Sam's Club tomorrow to see for myself whether this is a hoax or not, but at the moment the needle on my BS meter is way over in the red zone. Is everyone on this thread that gullible?

I admit to being a Fanatical Moderate. I Disdain the Inane. Vyizderzominymororzizazizdenderizorziz?

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I admit to being a Fanatical Moderate. I Disdain the Inane. Vyizderzominymororzizazizdenderizorziz?

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post #29 of 31
I'm calling BS on this whole story - at least in Pennsylvania. My local store said they do not and never did carry the iPhone, and to their knowledge the same goes for other stores in southeastern PA....
post #30 of 31
Quote:
Originally Posted by Kirboid View Post

I'm calling BS on this whole story - at least in Pennsylvania. My local store said they do not and never did carry the iPhone, and to their knowledge the same goes for other stores in southeastern PA....

You're right in that iPhones are not sold at Sam's Club locations in Pennsylvania, except for one in Pittsburgh. The list seems to be highly selective.

http://www.samsclub.com/sams/pagedet...equestid=39656

For some reason there are a bunch of locations around Chicago. I meant to get to a nearby warehouse in the western suburbs to check out the rumor today, but ran out of time. Maybe tomorrow ...

I admit to being a Fanatical Moderate. I Disdain the Inane. Vyizderzominymororzizazizdenderizorziz?

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I admit to being a Fanatical Moderate. I Disdain the Inane. Vyizderzominymororzizazizdenderizorziz?

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post #31 of 31
Quote:
Originally Posted by Kibitzer View Post

There sure are a lot of comments about a rumor that apparently no one bothered to get up off their butts today and check it out. I'll drop by a local Sam's Club tomorrow to see for myself whether this is a hoax or not, but at the moment the needle on my BS meter is way over in the red zone. Is everyone on this thread that gullible?

Okay - I checked this out at a nearby Sam's Club and at least the rumor is true at that location in Woodridge, Illinois. However, the $147 iPhone 4 16gb was "out of stock" as of mid-afternoon Wednesday for a new two-year signup or add-on to existing service. They were still offering the $47 3Gs deal.

I admit to being a Fanatical Moderate. I Disdain the Inane. Vyizderzominymororzizazizdenderizorziz?

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I admit to being a Fanatical Moderate. I Disdain the Inane. Vyizderzominymororzizazizdenderizorziz?

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