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Walmart's $74 iPhone 4S discount was a 'pricing error' [u]

post #1 of 50
Thread Starter 
Walmart, the largest retailer in the U.S., dropped the price of Apple's iPhone 4S with a two-year AT&T contract by as much as $74 at some locations, but the retailer later explained that the reductions were a "pricing error."

The price drop was first discovered at a Walmart store in Edmond, Okla., by Cult of Mac. There, both the black and white 16-gigabyte AT&T iPhone 4S is on sale for $114, down $74 from Walmart's usual $188 price.

In addition, the iPhone 4 was also reduced in price at the big-box retailer's location. There customers can get both the black and white 8-gigabyte iPhone 4 for just $34, on sale from Walmart's usual $88 price with a new two-year contract.

The sale is not reflected on Walmart's website, but it isn't confined to just one store. The Verge also found that one store in Austin, Tex., was also offering the iPhone 4S for $114, though none of the stores they spoke with were offering the iPhone 4 for less than $88.

Update: In a statement to CNet, Walmart said the price change was the result of a "pricing error in limited stores." The issue has since "been addressed and normal prices are in effect."

Even without the sale in effect, Walmart's low-margin business model allows the retailer to sell Apple's iPhone at prices lower than the suggested retail price. The 16-gigabyte iPhone 4S has an MSRP of $199 with a two-year contract, while the 8-gigabyte iPhone 4 regularly costs $99.

Walmart


One study released in March revealed that Walmart does not play a significant role in iPhone sales. Outside of direct carrier sales, Apple sells 15 percent of iPhones in the U.S., while Best Buy accounts for 13 percent. The collective group of Walmart, Target, Radio Shack and Sam's Club accounts for just 3 percent of domestic iPhone sales.

Last quarter, Apple sold 35.1 million iPhones to start 2012, a higher-than-expected sum driven largely by international expansion of the iPhone 4S. Still, in the U.S., Apple's iPhone was the most popular smartphone at AT&T, Verizon and Sprint, the nation's three largest wireless carriers.
post #2 of 50

No mention of the 32GB iPhone 4S? Do they not sell it?

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13" MBP 2.53GHz C2D, 21.5" Alu iMac 3.06GHz C2D, 24" Alu iMac 2.8GHz C2D, 15" MBP 2.2GHz i7 (work)
AppleTV: 320GB, 2; TC 500GB; iPad 32GB; iPhone: 3G 8GB, 4 32GB; iPod: 30GB 5G, 80GB Classic, 2GB...

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post #3 of 50

How does this make people feel?  Is it really wise to sell at a discount at Mall*Wart?

post #4 of 50

iPhone 5 coming soon?

post #5 of 50

TS - where is your first post to jump ahead of all the people that will say this is a sign that they are dumping the iPhone because it isn't selling (or that the iPhone 5 is coming soon).
 

Hmmmmmm...
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Hmmmmmm...
Reply
post #6 of 50
Quote:
Originally Posted by Tsun Zu View Post
iPhone 5 coming soon?

 

*Dies Irae plays as I douse myself with gasoline*

 

Quote:
Originally Posted by island hermit View Post
TS - where is your first post to jump ahead of all the people that will say this is a sign that they are dumping the iPhone because it isn't selling (or that the iPhone 5 is coming soon).

 

On the contrary. My post on the original story on CultofMac was as follows:

 

Quote:
Poor dopes actually think there will be a new iPhone a month from now.
 
Screw 'em.

 

GOSH DANG IT FORUM, DON'T KEEP MY FORMATTING. I don't know how to get rid of colored backgrounds. I shouldn't care about that; they shouldn't come along. I want to be able to take text from anywhere and paste it into a quote and have it look good. I can't even do that HERE; all post <div>'s apparently don't have their own background color; it's applied to the TEXT for whatever nonsensical reason. JUST…

 

*sigh* lol.gif

post #7 of 50

Maybe just a loss leader to attract new customers to the stores?

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post #8 of 50
Wow, this will save you save you $3 a month off your $85+/mo. cell phone bill. If that isn't exciting enough for you, you get to shop at Wall-Mart. Life is good. I wonder if these people will get a $4 fee added onto their bill for YGCP. You Got a Cheap Phone?
post #9 of 50
Quote:
Originally Posted by Tallest Skil View Post

GOSH DANG IT FORUM, DON'T KEEP MY FORMATTING. I don't know how to get rid of colored backgrounds. I shouldn't care about that; they shouldn't come along. I want to be able to take text from anywhere and paste it into a quote and have it look good. I can't even do that HERE; all post <div>'s apparently don't have their own background color; it's applied to the TEXT for whatever nonsensical reason. JUST…

 

*sigh* lol.gif

Did you try pasting using "paste and match style"?

post #10 of 50

Maybe and BIG MAYBE, Tim and the boys in Cupertino ARE planning a iPhone June release to reschedule release dates so that the September/October time frame for the Holiday Shopping Season is reserved for something new coming from Apple?

 

Okay...  before anyone else decries it...  I call

 

BS on my own post! (insert missing emoticon here, tired of laughing one... and only laughing one!).

/

/

/

Ten years ago, we had Steve Jobs, Bob Hope and Johnny Cash.  Today we have no Jobs, no Hope and no Cash.

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Ten years ago, we had Steve Jobs, Bob Hope and Johnny Cash.  Today we have no Jobs, no Hope and no Cash.

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post #11 of 50
Quote:
Originally Posted by WelshDog View Post

Did you try pasting using "paste and match style"?

 

"?" *Loohs it up. Tries it* Oh, yeah, like I'm ever going to remember that. lol.gif

post #12 of 50
Quote:
Originally Posted by Rot'nApple View Post

BS on my own post! (insert missing emoticon here, tired of laughing one... and only laughing one!).

devil.gif

smoking.gif

Life is too short to drink bad coffee.

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Life is too short to drink bad coffee.

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post #13 of 50
What would the trolls say? "The iPhone 4S is being discounted because nobody wants a phone without <niche-attribute /> ?"

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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post #14 of 50
Quote:
Originally Posted by Suddenly Newton View Post
What would the trolls say? "The iPhone 4S is being discounted because nobody wants a phone without ?"

 

A 5" screen.

Android.

A stylus.

Candy-based OS names.

Multi-gigahertz processors.

Multiple gigabytes of RAM.

Quad-core processors.

Removable batteries.

Snapdragon.

 

Hey, look, alphabetical.

post #15 of 50
Quote:
Originally Posted by Tallest Skil View Post

 

A 5" screen.

Android.

A stylus.

Candy-based OS names.

Multi-gigahertz processors.

Multiple gigabytes of RAM.

Quad-core processors.

Removable batteries.

Snapdragon.

 

Hey, look, alphabetical.

 

You forgot an M... microSD expansion.

Hmmmmmm...
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Hmmmmmm...
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post #16 of 50
Quote:
Originally Posted by island hermit View Post
You forgot an M... microSD expansion.

 

I did indeed. And MicroUSB port. And MiniHDMI.

post #17 of 50
Quote:
Originally Posted by island hermit View Post

 

You forgot an M... microSD expansion.

 



Steve Jobs killed that one personally.

NoahJ
"It is unwise to be too sure of one's own wisdom. It is healthy to be reminded that the strongest might weaken and the wisest might err." - Mahatma Gandhi
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NoahJ
"It is unwise to be too sure of one's own wisdom. It is healthy to be reminded that the strongest might weaken and the wisest might err." - Mahatma Gandhi
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post #18 of 50
Quote:
Originally Posted by Suddenly Newton View Post

What would the trolls say? "The iPhone 4S is being discounted because nobody wants a phone without <niche-attribute /> ?"

I think we can all agree that this is obviously a fire sale.

post #19 of 50
Quote:
Originally Posted by Rot'nApple View Post

Maybe and BIG MAYBE, Tim and the boys in Cupertino ARE planning a iPhone June release to reschedule release dates so that the September/October time frame for the Holiday Shopping Season is reserved for something new coming from Apple?

Okay...  before anyone else decries it...  I call

BS on my own post! (insert missing emoticon here, tired of laughing one... and only laughing one!).
/
/
/

Actually, I think you're on to somethings:

1) July-August new iPhone

2) September-October iTV

The iTV (Interactive TV) will be a powerful iOS STB that allows you to interact with a connected HDTV using companion iPads...

...Interactively pause, scrub, telestrate, annotate, magnify, zoom, adjust, composite, access metadata (compare prices, shop, buy, mark for later review, etc.) live, streamed or recorded TV (including pictures, slide shows, documents, books, reference/educational material, presentations, etc.).

Coming soon to your big box store of choice.

That's how Steve cracked it !
Edited by Dick Applebaum - 5/4/12 at 9:40am
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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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"Swift generally gets you to the right way much quicker." - auxio -

"The perfect [birth]day -- A little playtime, a good poop, and a long nap." - Tomato Greeting Cards -
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post #20 of 50
Quote:
Originally Posted by Tallest Skil View Post

A 5" screen.
Android.
A stylus.
Candy-based OS names.
Multi-gigahertz processors.
Multiple gigabytes of RAM.
Quad-core processors.
Removable batteries.
Snapdragon.

Hey, look, alphabetical.

Whoa, alphabetical? I'm not sure you want to do that as it probably violates someone's copyright based on "structure, sequence and organization". :0
melior diabolus quem scies
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melior diabolus quem scies
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post #21 of 50
Quote:
Originally Posted by island hermit View Post

You forgot an M... microSD expansion.

Yeah, and a little microSD card wallet to store and organize all the cards... You could even have a master "index" card so you could drill-down to the exact card holding a specific file, app or game...
"Swift generally gets you to the right way much quicker." - auxio -

"The perfect [birth]day -- A little playtime, a good poop, and a long nap." - Tomato Greeting Cards -
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"Swift generally gets you to the right way much quicker." - auxio -

"The perfect [birth]day -- A little playtime, a good poop, and a long nap." - Tomato Greeting Cards -
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post #22 of 50
Quote:
Originally Posted by Dick Applebaum View Post


Yeah, and a little microSD card wallet to store and organize all the cards... You could even have a master "index" card so you could drill-down to the exact card holding a specific file, app or game...

 

I think you're onto something, Dick...

 

I hate it when I find a SD card amongst the junk on my desk and then realize it contains long forgotten photos of some long forgotten event.

Hmmmmmm...
Reply
Hmmmmmm...
Reply
post #23 of 50
Quote:
Originally Posted by digitalclips View Post

Maybe just a loss leader to attract new customers to the stores?

 

My thoughts exactly.  Anyone know who is the actual wholesale buyer from Apple? Is it AT&T or Walmart?

Either way, I assume AT&T pays a significant  "commission" to Walmart for the resulting contract. I'm guessing AT&T's kickbacks cover all costs at normal price, maybe even with some room for profit.

This new sale is probably a local loss leader to drum up business.

post #24 of 50

I think that since the US has had the iPhone 4S that they are selling them less because of the drop in demand so they can spurt short term sales until the iPhone 5 gets released.  Now, if Apple does what they have done in the past, when the iPhone 5 comes out, Apple will take the sweet spot iPhone 4S and offer that model after the release of the iPhone 5, because some people don't necessarily want or afford the top end models.

post #25 of 50
Quote:
Originally Posted by Tallest Skil View Post

Quote:
Originally Posted by island hermit View Post
You forgot an M... microSD expansion.

 

I did indeed. And MicroUSB port. And MiniHDMI.

 

I think that a lot of budget minded music lovers would pass on any phone missing an SD card slot.  There's a big advantage for the manufacturer, in that they have a better chance of selling 16 Gigs of flash for $100 if they leave the card slot out.  But at least some people want the opportunity to add/swap data quickly, cheaply and with huge capacity.

post #26 of 50
Quote:
Originally Posted by BigBillyGoatGruff View Post

Quote:
Originally Posted by Suddenly Newton View Post

What would the trolls say? "The iPhone 4S is being discounted because nobody wants a phone without <niche-attribute /> ?"

I think we can all agree that this is obviously a fire sale.

 

 

Maybe a fire sale in the sense of an overstock condition.  

 

Or maybe they want ot promote the store-in-a-store setups, and this is a good way to get Apple buyers to stop by.

 

We  don't have enough information to really know.  Could be a combo - They wanted a promotion, and picked this product due to stocking levels.

post #27 of 50
(Sigh) For all the snooties who think that iPhones are to good to be sold at a low-life place like WalMart, here's the link for you!

http://www.peopleofwalmart.com/photos/

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 #28 of 50
Quote:
Originally Posted by kent909 View Post
Wow, this will save you save you $3 a month off your $85+/mo. cell phone bill. If that isn't exciting enough for you, you get to shop at Wall-Mart. Life is good. I wonder if these people will get a $4 fee added onto their bill for YGCP. You Got a Cheap Phone?

 

This. The real cost of the phone is buried in the monthly contract fee. For all we know, AT&T may be kicking money back to Wal*Mart for each iPhone contract activation.

 

I'm paying $35/mo for unlimited data and a few hundred minutes of voice with VirginMobile/Sprint. Yes, I have to actually buy the phone, but the cost of the phone is not hidden from me.

 

- Jasen.

post #29 of 50
Quote:
Originally Posted by Dick Applebaum View Post

Quote:
Originally Posted by island hermit View Post

You forgot an M... microSD expansion.

Yeah, and a little microSD card wallet to store and organize all the cards... You could even have a master "index" card so you could drill-down to the exact card holding a specific file, app or game...

 

Or maybe you buy a 64 gig card to supplement the 64 gigs in your  phone.  They are available cheap.  The  smaller capacities are ultra cheap.  

 

What you describe was necessary in the bad old days when cards were only a fraction of a gig in size.  Now it is optional, but it wouldn't be so terrible to take 64 gigs of movies with you on vacation on one card, with 64 gigs of music on another.  All while leaving your permanent stuff untouched in the main storage.


Edited by I am a Zither Zather Zuzz - 5/4/12 at 10:24am
post #30 of 50

UPDATE: This was an error on their part.

post #31 of 50
Quote:
Originally Posted by Tallest Skil View Post

UPDATE: This was an error on their part.

So a loss if not a leader then ... LOL

p.s. using the new AI on an iPad sucks!
From Apple ][ - to new Mac Pro I've used them all.
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"Google doesn't sell you anything, they just sell you!"
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From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
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post #32 of 50
Quote:
Originally Posted by digitalclips View Post

Maybe just a loss leader to attract new customers to the stores?


What he said.

It is useless for sheep to pass laws outlawing carnivorism when the wolf is of a different mind.
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It is useless for sheep to pass laws outlawing carnivorism when the wolf is of a different mind.
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post #33 of 50

Pricing error with all that pre printed advertising and display material.

 

If an error the only error is displaying it prematurely.

post #34 of 50
Quote:
Originally Posted by GPDawes View Post
Pricing error with all that pre printed advertising and display material.

 

What 'pre-printed advertising'? Those are the shelf tags.

 

Quote:

If an error the only error is displaying it prematurely.

 

Five months prematurely.


Edited by Tallest Skil - 5/4/12 at 12:26pm
post #35 of 50

Walmart in my area has always seemed suspicious when it comes to Apple Products. To this day in their case they display the Ipad1! The Ipods they display are also last years models. Clueless....

post #36 of 50
Quote:
Originally Posted by Tallest Skil View Post

UPDATE: This was an error on their part.

 

Quote:
Originally Posted by digitalclips View Post


So a loss if not a leader then ... LOL
p.s. using the new AI on an iPad sucks!

 

I was going to post *  that I thought it was odd that Apple was allowing Wal-Mart to offer a large discount...  Apple is quite firm about its MSRPs... only allowing small discount's.   It doesn't want four stores on every street corner competing for the lowest price... it lowers the perceived value of the product in the eyes of the buyer/public.

 

* I got busy doing manly things -- writing a Motion Template to add a Karaoke effect to FCP X.  I have a friend that makes music videos in several languages (Hindi, Japanese, French, English, Spanish... Boston).

 

When we had Apple stores we had to get prior approval for any but a small discount, say 2-5%...  Apple would rather you return the product to them (and would waive or reduce restocking fees) than have authorized dealers engaging in price wars.

 

 

I agree that the new AI site [mostly] sucks on an iPad...  But, the new iPad's excellent dictation compensates for most of the downside.


Edited by Dick Applebaum - 5/4/12 at 12:43pm
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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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"Swift generally gets you to the right way much quicker." - auxio -

"The perfect [birth]day -- A little playtime, a good poop, and a long nap." - Tomato Greeting Cards -
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post #37 of 50
Quote:
Originally Posted by Dick Applebaum View Post


I was going to post *  that I thought it was odd that Apple was allowing Wal-Mart to offer a large discount...  Apple is quite firm about its MSRPs... only allowing small discount's.   It doesn't want four stores on every street corner competing for the lowest price... it lowers the perceived value of the product in the eyes of the buyer/public.

* I got busy doing manly things -- writing a Motion Template to add a Karaoke effect to FCP X.  I have a friend that makes music videos in several languages (Hindi, Japanese, French, English, Spanish... Boston).

When we had Apple stores we had to get prior approval for any but a small discount, say 2-5%...  Apple would rather you return the product to them (and would waive or reduce restocking fees) than have authorized dealers engaging in price wars.


I agree that the new AI site [mostly] sucks on an iPad...  But, the new iPad's excellent dictation compensates for most of the downside.

Just can't get that dictation thing to work on my iPad 2 grrrrr 1wink.gif
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
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From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
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post #38 of 50
Quote:
Originally Posted by I am a Zither Zather Zuzz View Post

 

Or maybe you buy a 64 gig card to supplement the 64 gigs in your  phone.  They are available cheap.  The  smaller capacities are ultra cheap.  

 

What you describe was necessary in the bad old days when cards were only a fraction of a gig in size.  Now it is optional, but it wouldn't be so terrible to take 64 gigs of movies with you on vacation on one card, with 64 gigs of music on another.  All while leaving your permanent stuff untouched in the main storage.

iCloud.

post #39 of 50

This doesn't surprise me at all. I work for Walmart and I am constantly doing price chances from the starting price to a rollback or home office price change and then back to the original price the very next day or my favorite clearance items going back to regular price but the item still being on clearance. Apparently there is a flaw in pricing system software. If only Walmart would use Macs haha.

post #40 of 50
Quote:
Originally Posted by Dick Applebaum View Post


The iTV (Interactive TV) will be a powerful iOS STB that allows you to interact with a connected HDTV using companion iPads...
 

Apple will never release a product called 'iTV'. Maybe Apple HDTV, or the iPanel, but not iTV.

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