Best Buy Complains About Walmart's iPhone 5 Holiday Sale, Claims $65,000 Profit Loss in One Day

The Wall Street Journal notes that several retailers including Best Buy and Toys "R" Us have complained to attorneys general in a handful of states about advertising practices of Walmart. Generally, the complaints stem from comparison ads by Walmart in which competitors assert that Walmart is using inaccurate pricing or non-equivalent items to claim that it offers the lowest pricing.

walmart iphone 5 127 text
But Best Buy also alleges that Walmart was deceptive with its iPhone 5 holiday sale in which it dropped pricing to $127, although the article quotes $150 pricing.

Best Buy said it lost about $65,000 in profit the day Wal-Mart's promotion first ran on Facebook, because it was compelled to match Wal-Mart's advertised $150 price, even though it concluded that Wal-Mart didn't actually have a sufficient number of iPhones available.

Walmart claims that it did have sufficient stock of the iPhone 5, quoting 98% availability at its stores carrying the device. Walmart had noted as the sale launched that it was working closely with Apple on the promotion and was securing significant numbers of iPhones, but that the sale was first-come, first-served with no rain checks offered at stores where the device was out of stock.

Best Buy had already been selling the iPhone 5 for $149.99 when Walmart announced its own sale, but it is unclear if Best Buy used the $73 difference from regular price or $23 difference from Best Buy's sale price in calculating its profit loss. Assuming the latter, Best Buy would have price matched on approximately 2800 iPhone 5 sales in one day.

Related Forum: iPhone

Top Rated Comments

AFDoc Avatar
143 months ago
Sounds like a bunch of whining to me.
Score: 42 Votes (Like | Disagree)
ouimetnick Avatar
143 months ago
awww Poor Best Buy

NOT

Bunch of clueless goof balls run Best Buy. Trying to sell Monster cables and Bose junk. And their extended warrantee.

The sales reps have no idea what they are actually talking about, and considering their geek squad is run by idiots, I don't like BB.
Score: 30 Votes (Like | Disagree)
Wicked1 Avatar
143 months ago
Wish amazon would put BB out of business already.

They won't have to, BB is bleeding cash and losing customers every month now.

The founder is trying to buy the company and go private but the board thinks BB is worth a lot more, so as BB bleeds and becomes devalued, the founder is getting the company cheaper by the month, however they can not compete with Amazon and Apple directly. I have never heard one good Geek Squad story, and I warn people not to get it.

They have become a showcase for people to look and see the products and then buy them online or somewhere else cheaper.
Score: 17 Votes (Like | Disagree)
Avatarshark Avatar
143 months ago
We are suppose to care because...

Besides 68,000 is a drop in a bucket of multi-billion dollar gouging sales during the year
Score: 16 Votes (Like | Disagree)
mantan Avatar
143 months ago
Wow....I NEVER thought I'd see the day where MR users were running to Walmart's defense of discounting Apple products.....or maybe it's just the fun the mob has piling on whoever the target of the day is.

When the original Walmart post came out, it was filled with smarmy remarks about Walmart customers and how they were unworthy to sell your beloved Apple products.

Now some of you are championing competition....even though Apple clearly envokes strict price controls on almost everyone who sells their equipment.

The hypocrisy of this site is a trip.....

If we want competition, then truly open it up and let resellers sell Apple gear for any price they choose. Otherwise spare me the economics lessons Best Buy needs to learn about competition.
Score: 14 Votes (Like | Disagree)
rdowns Avatar
143 months ago
Best Buy needs to concentrate on remaking their business or they won't be around to see 2014.
Score: 14 Votes (Like | Disagree)

Popular Stories

iOS 16 4 Web Push

Apple Confirms Governments Using Push Notifications to Surveil Users

Wednesday December 6, 2023 5:06 am PST by
Unidentified governments are surveilling smartphone users by tracking push notifications that move through Google's and Apple's servers, a US senator warned on Wednesday (via Reuters). In a letter to the Department of Justice, Senator Ron Wyden said foreign officials were demanding the data from the tech giants to track smartphones. The traffic flowing from apps that send push notifications...
iOS 17

iOS 17.2 Will Add These 12 New Features to Your iPhone

Friday December 1, 2023 12:19 pm PST by
iOS 17.2 has been in beta testing for over a month, and it should be released to all users in a few more weeks. The software update includes many new features and changes for iPhones, including the dozen that we have highlighted below. iOS 17.2 is expected to be released to the public in mid-December. To learn about even more features coming in the update, check out our full list. Journal ...
iphone se 4 modified flag edges

iPhone SE 4 May Reuse Existing iPhone 14 Battery

Wednesday December 6, 2023 1:17 pm PST by
Recently, MacRumors has received details on the battery currently being tested on the upcoming fourth-generation iPhone SE, and the information corroborates previous findings in relation to the device. The iPhone SE 4, known by its device identifier D59, is expected to use the exact same battery found in the base model iPhone 14. Partially assembled prototypes of the next iPhone SE have been ...
best buy snowflakes

Best Buy's New Weekend Sale Has Record Low Prices on MacBook Pro and MacBook Air

Friday December 8, 2023 7:37 am PST by
Best Buy's month-long holiday sale continues this weekend with multiple all-time low prices on Apple's line of MacBook Pro and MacBook Air computers. In addition to Apple notebooks, Best Buy's event has discounts sitewide on home appliances, TVs, video games, and more. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive...
beeper mini

Apple Puts a Stop to Beeper Mini's iMessage for Android Feature

Friday December 8, 2023 2:24 pm PST by
Apple appears to have closed the loophole that Beeper Mini used to bring iMessage to Android, putting a stop to blue bubbles from Android devices. Beeper Mini quit working earlier today, with users receiving "failed to lookup on server: lookup request timed out" error messages. Beeper said on Twitter that it is investigating the issue, but Beeper CEO Eric Migicovsky told TechCrunch that "all ...
maxresdefault

Review: Two Months With the iPhone 15 Pro Max

Thursday December 7, 2023 12:04 pm PST by
Apple's iPhone 15 lineup came out in September, and while most reviews are done shortly after a new device launches, we like to follow up with a longer term review that gives us an opportunity to provide a deeper dive into what it's like using these phones on a day to day basis for months. Subscribe to the MacRumors YouTube channel for more videos. MacRumors videographer Dan Barbera has been...
12

Apple to Launch Two iPad Air and Two OLED iPad Pro Models Early Next Year

Wednesday December 6, 2023 9:53 am PST by
To boost falling iPad sales, Apple has a major refresh planned for the iPad lineup in early 2024, according to Bloomberg's Mark Gurman. Apple plans to debut new iPad Air and iPad Pro models, both of which will feature notable changes. The iPad Air will come in two sizes like the iPad Pro for the first time. The smaller model will continue to measure in at 10.9 inches, but the larger version...
anker new gold

Anker Begins Countdown to Christmas Sale With Up to 50% Off Popular Charging Accessories

Thursday December 7, 2023 7:55 am PST by
Anker has launched its newest holiday sale, this one offering a special deal every day in the lead-up to Christmas. These sales offer up to 50 percent off select products, and include discounts on USB-C chargers, portable batteries, and much more. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment, which ...