iphone5On Saturday, Walmart will begin offering the iPhone 5 at a $60 discount (from $189 to $129) and the iPhone 4S at a $50 discount (from $89 to $39), reports Mashable. The prices are permanent, available only in-store and require signing a new 2-year contract with Verizon, Sprint, or AT&T.

We asked Walmart if the new pricing is temporary and were told that no, this is in fact the permanent price of the items. The new price is only available in Walmart stores and is not available online.

The price drop is also notable because Apple has historically limited the degree to which retailers can drop prices on its products. Although some retailers such as Walmart routinely discount items by $10, cutting the price by more than 30% (in the case of the iPhone 5) and nearly 70% (in the case of the iPhone 4S) is unprecedented.

While it is not unusual to see seasonal sales at Walmart, it is odd to see a drastic, permanent price cuts on one of Apple's devices. iPhone pricing, however, has grown increasingly competitive in recent months, which has led to significant price drops at multiple retailers. Best Buy, for example, dropped the iPhone 5 price by $50 in May and recently reintroduced a successful trade-in program to allow iPhone 4/4S users to upgrade to the iPhone 5 at no cost.

It is likely that stores are also aiming to get rid of existing inventory before the introduction of the iPhone 5S, which is expected to be announced in the fall. In recent weeks, news of Apple's upcoming refreshed iPhone has been picking up, and this morning, photos of the device itself surfaced. The iPhone 5S is expected to come equipped with an improved camera, a dual LED rear flash, and a fingerprint sensor.

Walmart's discounted iPhone pricing is set to begin this Saturday, on June 22 and will last indefinitely.

Top Rated Comments

clickerman Avatar
161 months ago
Walmart is not clearing stock. Apple is trying to goose sales until their new products come out later this year.
Score: 5 Votes (Like | Disagree)
blitzer09x87 Avatar
161 months ago
thanks but no thanks, i'll wait for the iphone 5s, but i'd say that this is a great move by apple, this would further affect the s4's dying sales.
Score: 3 Votes (Like | Disagree)
imwoblin Avatar
161 months ago
It gets even better. AT&T is now running a 50% off promotion which includes iPhones. You can now get a new iPhone 5 for $99 w/ new contract!
Score: 2 Votes (Like | Disagree)
Snowshiro Avatar
161 months ago
And in Japan, the iPhone 5 is still free, as it has been since the day of launch. Oh and they give you $100 (10,000 yen) cashback as well. So basically it's minus $100.

Amazes me how America seems to put up with this nonsense.
Score: 2 Votes (Like | Disagree)
beaniemyman Avatar
161 months ago
looks like the iphone 5 is not selling well, poor apple. GS4 and the htc one have really affected the sales
Score: 2 Votes (Like | Disagree)
maxosx Avatar
161 months ago
Well it looks like Apple's run of high priced, fat margined products is waning. Good news all around.

Sooner or later people wake up to the fact that although Apple makes good products, perhaps they're not "Magical & Revolutionary" after all.

As the "Steve Jobs Effect" wears off, reality sets in.

----------

Wow. Steve fought long and hard to make Apple stores perfect, to display his creations in a way that sets them apart.

Now they are in Walmart bargain bin. WTF??

Steve Jobs is the one who approached WalMart to place his products with this mass market low end retailer. He knew sooner or later there was no avoiding it.
Score: 2 Votes (Like | Disagree)

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