New information from Boy Genius Report points to a $99 iPhone with 4GB of storage to be sold at Walmart, while AT&T is slashing nearly 12,000 jobs to stabilize itself during the economic downturn.
BGR has been reporting information regarding the iPhone’s arrival at Walmart since early October. See here, here, and here. Today’s new information not only correlates with what they have been explaining for a few months, it sheds new light on Walmart’s possible offerings with the iPhone, and Apple’s possible answer to the price umbrella that has been created.
We’re not putting our stamp of approval behind this one just yet as the tipster isn’t listed in our BGR’s Guide to respected Ninjas handbook, but it does make you think, doesn’t it?
They aren’t completely endorsing the rumor, as they explain that it may not be completely accurate. As we all know, this could simply be speculation. As MacRumors points out, “when Apple originally introduced the iPhone, it came in 4GB and 8GB models. Only a couple of months later, Apple discontinued the 4GB model altogether and dropped the price of the 8GB model. Apple currently sells an 8GB ($199) and 16GB ($299) iPhone with 2 year contract.” Apple CEO Steve Jobs has previously explained that the current $199 price-tag on the iPhone creates a “price umbrella” that Apple needs to make sure doesn’t get exploited by competitors.
AT&T Slashing 12,000+ Jobs
Macworld explains that AT&T will lay off nearly 12,000 employees through the next 12 months, in order to reorganize the company during these tough economic times.
The move will cost AT&T nearly $600 million in the fourth quarter of 2008, as they dish out severance payments to those workers, which make up around 4% of AT&T’s entire workforce.
In an attempt to lessen the blow, AT&T explained that it will be adding employees in certain areas of service, such as wireless, video and broadband. Non-management, union contracted workers will not be affected and most have a guaranteed job.
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5 Comments to “Walmart to Sell 4GB $99 iPhone While AT&T Slashes 12,000 Jobs”
Makes sense to me. Apple needs new iPhone products.
I’m quoting you on this Aviv —
“In order to sell a less-expensive iPhone, priced (let’s say) at $99, Apple would need to introduce a new model with less storage. The current models would get bumped in specs, and a cheaper iPhone would be introduced and outfitted with less storage than its bigger brothers. The current 8GB iPhone would have absolutely no place in this line up, and will probably be discontinued. At the same time, for Apple to increase or double the iPhone’s storage, they would need to either raise the price, or increase the iPod touch’s storage capacity as well, in order to avoid significant cannibalization, or confusion among consumers.
Theoretically, the iPhone family would have a diverse selection of products, just like the current iPod line-up. Perhaps not as many models or choices in color, but the storage capacity and features will be spread across the products, lowest to highest, priced accordingly. In what initially might seem to conflict, Friedman Billings Ramsey analyst Craig Berger has reported today that “Apple has cut its calendar Q4 iPhone production plans significantly more than originally estimated.” Chances are Apple is cutting production (on current iPhone models) to level out with industry demand. Although extremely difficult, the company must have the ability to foresee downturns in the industry, and mobile market. ”
From this article: http://www.macblogz.com/2008/11/03/32gb-iphone-3g-making-its-debut-at-macworld-2009/
All makes sense to me.
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Hey jojo, haha, Thanx
I do though believe that it’s simply nothing more than natural product line progression, that will force Apple to introduce new iPhones at competitive price-points with varying feature sets. It worked for the iPod, and it will work for the iPhone, it’s just a matter of time.
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hopefully we can buy more than just one now.
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Wal-Mart’s going to sell a 512MB iPhone for $12…
http://www.maccomedy.com/wal-mart-to-sell-512mb-apple-iphone-for-12/
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Are these 4gb iPhone or 512mb iPhone sold by Walmart going to be prepaid phones ?
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