After dropping pricing below Apple’s recommended pricing in previous years as a loss leader and promotional tool, Walmart has decided to drop the contract pricing of the iPhone 4S and 5 to $39 and $129 respectively after new 2 year agreement on multiple carriers this weekend with AT&T and Verizon being the participating carriers in the price cuts.
While the move to drop contract pricing to such levels outside of a limited promotion isn’t unheard of for the world’s largest retailer, to do so on a permanent basis is being seen as a shrewd move by the conglomerate, with many analysts pointing to the forthcoming refresh in the iPhone 5S as the impetus to move as much current postpaid inventory as possible ahead of its eventual release.
Since the release of the 5S is not expected until September at the earliest, the price cuts also reflect the desire to avoid the quarterly slowdown in sales that were commonplace before the release of every generational update and are expected to keep the iPhone models competitive against recently updated Android flagships. The price drops will only be available in-store and will not be made available online.
Walmart Apple iPhone 4S (AT&T/Verizon) – $39
Walmart Appple iPhone 5 (AT&T/Verizon) – $129
