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.


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.

Top Rated Comments

(View all)
Avatar
102 months ago
Sounds like a bunch of whining to me.
Score: 42 Votes (Like | Disagree)
Avatar
102 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)
Avatar
102 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)
Avatar
102 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)
Avatar
102 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)
Avatar
102 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)

Top Stories

iPhone 12 Pro in Graphite and iPhone 12 in Blue Shown Off in Unboxing Videos

Monday October 19, 2020 8:20 am PDT by
While the iPhone 12 Pro does not launch until Friday, we now have an early unboxing video of the device courtesy of Twitter account DuanRui, providing a closer look at the shiny new flat-edge design and sleek Graphite color option. Ben Geskin re-uploaded the unboxing video to YouTube, which we've embedded below: Geskin has also uploaded an unboxing video of the iPhone 12 in Blue: ...

Kuo: iPhone 12 Pro Demand Higher Than Expected

Sunday October 18, 2020 10:39 pm PDT by
TF International Securities analyst Ming-Chi Kuo released a research note this morning detailing what he's seen with the volume of iPhone 12 and iPhone 12 Pro pre-orders in the first weekend of sales. Kuo had previously indicated that Apple's estimated shipment allocations for the new iPhone models placed the iPhone 12 at the top with 40-45% of inventory allocation (up from 15-20%). However, ...

Apple's New MagSafe Charger and Cases Begin Arriving to Customers

Saturday October 17, 2020 10:10 am PDT by
Apple's new MagSafe charger and cases have begun arriving to some customers earlier than expected, and images of the accessories have started to surface on Twitter. The photos provide a first look at the products in real-world use. As of writing, some MagSafe cases are also available for pickup at select Apple Stores in countries like the United States, Canada, and Germany. Filip...

HomePod Mini Cable is Non-Detachable, Ends With USB-C Connector for Use With Included 20W Power Adapter

Friday October 16, 2020 12:45 pm PDT by
While not detailed in the tech specs, MacRumors can confirm that Apple's new HomePod mini features a non-detachable power cable that ends with a USB-C connector for use with the 20W power adapter included in the box. With the switch to USB-C, the HomePod mini could potentially be powered by a wider range of devices and peripherals, ranging from MacBooks to USB-C battery packs with enough...

Samsung Mocks Apple for Ditching Power Adapters With iPhone 12 Lineup

Thursday October 15, 2020 11:51 am PDT by
Samsung on its social channels is mocking Apple for removing the power adapter from the iPhone 12 lineup and other iPhone models, pointing out the fact that the Samsung Galaxy smartphones continue to ship with a power adapter. "Included with your Galaxy," reads a Samsung Facebook post that features a picture of a power adapter. Apple notably is no longer providing power adapters or...

New Google App Feature Lets You Hum a Song to Search for It

Saturday October 17, 2020 4:05 am PDT by
Google has added a new feature to its Search app that allows you to hum a song that's stuck in your head, and then use the company's machine learning algorithm to try and identify it. In the Google app or using the Google Search widget, tap the mic icon and say "what's this song?" or click the "Search a song" button. Then start humming the tune for 10-15 seconds. When you're done, the...

Brazilian Certifications Suggest iPhone 12 Mini Features 2,227mAh Battery and iPhone 12 Has 2,815mAh Battery

Friday October 16, 2020 1:08 pm PDT by
Apple's iPhone mini has the shortest battery life out of all the iPhones in the iPhone 12 lineup due to its small size, but Apple has not provided public information about the battery's capacity. A regulatory filing from Brazil, however, suggests the iPhone 12 mini has a battery capacity of 2,227mAh. The same regulatory information says the iPhone 12 features a 2,815mAh battery, which is...

iPhone 12 Pro Pre-Orders Already Selling Out With Delivery Times Pushing Into November

Friday October 16, 2020 6:35 am PDT by
Apple today opened pre-orders for the 6.1-inch models of the iPhone 12 and iPhone 12 Pro through its website and the Apple Store app, and estimated delivery times are already slipping into November for select configurations in the United States. Customers ordering a SIM-free/Pacific Blue/128GB version of the iPhone 12 Pro, for example, are already facing an estimated delivery window of...

Hands-On With Apple's MagSafe Charger for iPhone 12

Monday October 19, 2020 11:54 am PDT by
Alongside the new iPhone 12 models, Apple introduced a MagSafe charger that attaches to the back of the iPhones using magnets embedded both in the charger and in the iPhone. It allows for speedier charging and paves the way for a portless iPhone in the future. MagSafe chargers are shipping out and are in some Apple retail locations now, and we picked one up to check it out. Subscribe to the ...

Apple Offering Free AirPods With iPhone 11 Purchase in India as Part of Diwali Celebration

Friday October 16, 2020 12:35 pm PDT by
Apple today launched a new Diwali promotion in India that will see the company providing customers with a set of AirPods with the purchase of any iPhone 11 model. The new iPhone 12 models are not part of the promotion. Apple is offering the standard AirPods With Charging Case free with purchase, but customers can choose to upgrade to the AirPods with Wireless Charging Case or the AirPods Pro....