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Walmart Confirms Selling the iPhone for $197, Sales Begin Dec.28th

Aviv — Fri, 26 Dec 2008 17:35:06 +0000

Walmart has publicly confirmed that they will begin selling the iPhone on Sunday, December 28th. While the timing may be a little awkward (right after the holidays), the addition of Walmart’s enormous distribution chain is sure to add value to Apple’s iPhone sales.

There were many rumors floating around about the iPhone being sold at Walmart. The Boy Genius Report first brought attention to the story, and the date they first anticipated has turned out correct. However, speculation that Apple would start selling a $99 iPhone (through Walmart) was completely unfounded, and regardless of what a few accurate sources said, the industry ran with it.

Even though additional established sources came out and said the $99 pricepoint seemed unlikely, people still had high hopes that it might happen. Leading up to the public confirmation, we also had a leaked memo, and some premature advertising that was spotted as well.

Walmart’s press release: The retailer will offer the black 8 GB iPhone 3G model with the every day price of $197 and the 16 GB black or white model for $297, with a new two-year service agreement from AT&T or qualified upgrade. As America’s price leader, Walmart’s price match policy also allows stores to match the price of any local competitor’s advertised store price on the same item within the same promotional period.

“We are delighted to bring customers this ground-breaking mobile technology,” said Gary Severson, senior vice president, Entertainment, Walmart. “Our electronics associates have been preparing for many weeks for the arrival of iPhone 3G. We are excited to now help new customers learn more about the features and services that make the iPhone unique.”

Walmart will add nearly 2,500+ distribution centers where consumers can purchase Apple’s iPhone. Even though we’ve reported about Apple and AT&T butting heads a little bit with the iPhone’s future distribution, it would’ve been very difficult to ignore the significance of so many new locations. Perhaps we’ll start seeing Macs at Walmart sometime in 2009.

Walmart Locations Begin Advertising the iPhone 3G

Dave — Thu, 18 Dec 2008 17:52:54 +0000

Adding to the confounding evidence that Walmart will soon be carrying the iPhone, a few of the mega-retailer’s locations have already begun advertising the device’s availability.

If for some reason by now you have not bought into these reports, AppleInsider notes reader reports of Walmart window decals and cardboard display jackets that depict the device with a simple line stating, “iPhone 3G. Now at Walmart.”

We had recently caught wind of a leaked internal Walmart memo that clearly detailed their upcoming iPhone plans. So these new advertisements are really just more hard evidence to what is already widely presumed.

The Cultural and Economic Significance of Macs at Walmart

Aviv — Mon, 08 Dec 2008 21:48:49 +0000

It has been confirmed that Apple’s iPhone will be sold at Walmart before the end of this year. While most may see this as a natural step in the iPhone’s evolution, the cultural and economic significance this has on both companies is astounding.

Acceptance

Culturally speaking, Apple’s products have always been marketed as “high-end” products. Which is what most analysts will tell you is confining the company to a sliver of market share in the computer industry. In the portable media player category, Apple dominates the space. No other competitors can even come close to Apple’s market share. This has happened because Apple has made the iPods so attractively priced, and so readily available that anybody, at anytime can buy one. With the iPhone, Apple will eventually bring the same strategy forward, this is inevitable. But what this may lead to has perhaps not been focused on for more than a moment amidst all of the ongoing headlines.

Macs at Walmart? This would be a huge move for Apple. As CNBC’s Jim Goldman points out, both companies have an incredibly head-strong “my-way-or-the-highway” attitude towards business partnerships. Could Apple be loosening up its controlling ways? Not unlikely. The bleak reality sits within product availability and pricing these days. The economy is not in a good place and even moderately high priced products are looked at as too expensive.

By placing its Mac computers at Walmart, Apple could be making them available to an entire section of consumers that have never before been exposed. Not lower-level consumers per say, but consumers that are more interested in saving money. More interested in squeezing everything they can out of their hard earned dollar. And there is nothing wrong with that mentality. The idea that Apple’s products are only for those that can afford them should be tossed aside. Apple is a computer company, OS X is a direct competitor to Windows, and increasing market share should continuously be a high priority for them.

Consumer Reaction

The initial hesitance that Apple may see from its devoted customers and brand devotees should be taken with a grain of salt by the industry. No matter what analysts say about Apple’s brand devotion, consumers use Apple products because of how they function, not the social implication that comes along with the shiny Apple logo. Marketing and branding will always play a big role in Apple’s success. But convincing PC users who have had preconceived notions about the Mac for years, to give it a try, is fundamentally based on how Apple’s products work.

The economic reaction to Apple’s products by this new segment of exposed consumers should be welcoming. Apple’s products are not outrageously overpriced when compared to similar spec’d machines from PC rivals such as HP, Dell and Sony. Apple offers an entry level Macbook, which is a more than capable machine, at the sweet spot of $999. Walmart shoppers who have never before known they had a choice will realize that a PC with Windows is not their only option.

The sheer volume of Walmart’s distribution channel is very impressive. With upwards of 4,000 locations in the United States, Apple’s products could get a whole new wave of exposure. For example, a consumer with access only to Walmart, may never know that Apple has a competing product at the same price-point. By Apple placing its Macs at Walmart, this could be avoided. Potential customers could get hands-on with Apple’s products and test them out first hand.

Apple currently sell its iPods at Walmart, along with a slew of accessories both from Apple, as well as third party manufacturers. Additionally, it has been confirmed that Walmart will be carrying the iPhone by the end of 2008. This places Apple’s most sensitive, powerful and important sector of business, the iPhone, at the heart of America’s shopping masses. If Apple ever plans on entering the big leagues in terms of computer market share, placing some of its Mac products at Walmarts would be a giant step in the right direction.

We here at MacBlogz welcome the idea of Macs being sold at Walmart, or any other credible retailer for that matter. The bigger the Macintosh user base, the more ubiquitous Apple’s technologies will get, thus elevating the company’s initiatives to the forefront of the PC industry.