Will Apple release a $99 iPhone through Walmart after Christmas?

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Permalink Reply by Nicki Laycoax on December 11, 2008 at 9:55pm

It would be odd if the iPhone was cheaper than an iPod... hmmm... I bet they'd sell out though.

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Permalink Reply by Nancy Leyes Myrland on December 11, 2008 at 10:35pm

There is such a love affair going on between Apple and its followers and users, that its brand equity allows it to create tiers without harm, for now. One example would be Martha Stewart. Martha sells products at every price point imaginable, through K-Mart, Macy's, MarthaStewart.com and others.

There are expectations of quality at every level, and as long as those are met, those brands that are strong, and which enjoy a positive brand relationship with customers and clients, will be successful. As long as features are offered at the higher price point, then the high-end users will stay happy. Look at all the other high-end electronics being offered now at WalMart. That won't kill the brand. In fact, the high-end user will actually check out the prices at WalMart out of curiousity.

Nancy Myrland
Myrland Marketing, Inc.
www.twitter.com/nancymyrland
www.myrlandmarketing.com

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Permalink Reply by Kyle Lacy on December 12, 2008 at 6:27am

I will no longer by Apple products if they start selling in Walmart. Talk about a way to kill your brand.

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Permalink Reply by Steve Stuck on December 12, 2008 at 10:31am

Why would it kill the brand?

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Permalink Reply by Colin Clark on December 12, 2008 at 4:02pm

Wal-mart has a reputation for selling 'cheap' stuff. if Apple releases a Walmart-only iPhone they contradict their existing image, which they've spent years building. It would make them a lot of money in the short run, but it would alienate their existing customers who don't see iPhones as cheap commodities. In the end they could lose the support of their most loyal supporters, the people who consistently go out and buy the newest coolest thing Apple has to offer. When something equally cool comes out (there's no reason to think it won't) Apple loyalists will jump ship if Apple doesn't preserve its brand.

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Permalink Reply by Steve Stuck on December 12, 2008 at 4:42pm

So your paragraph just really says: Don't sell to the the people who shop at WalMart because they are usually lower end of the spending spectrum and can't grasp the "brand".

Too funny of a posting.

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Permalink Reply by Nicki Laycoax on December 12, 2008 at 4:53pm

If you didn't buy Apple, what would you buy?

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Permalink Reply by Pat Coyle on December 12, 2008 at 9:17pm

We're going to hold you to this, Kyle...see Steve's post below...it's coming!!

:-)

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Permalink Reply by Milo Curtis on December 12, 2008 at 10:24am

Apple already offers it's full line of iPods at Walmart. This would be a move to expand it's current line up, as opposed to a brand new retail outlet. Some of the speculation has Walmart ofering a 4gig model (vs 8gig). Bestbuy starts retailing the iPhone back in Sept. (that's where I got mine). As a result, 40% of Apples revenue now comes from the iPhone. I doubt this will happen because of the current in store activation process ATT requires. Can't see a Walmart Associate working that process out.

Oh, this was posted from my iPhone.

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Permalink Reply by Steve Stuck on December 12, 2008 at 7:34pm

FYI- Went to WalMart tonight in Brownsburg and talked with their department manager back in electronics. December 28th the phone gets released there at that store. The main electronic personnel had to take 4 hour courses on the Apple i-Phone. They all had to finish up classes on it tomorrow. The one guy there basically said the only thing they had to learn different compared to the other cell phone products was the software applications they had to understand.

I guess Apple loyalists better get their lifejackets ready for this ship jumping.

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Permalink Reply by Pat Coyle on December 12, 2008 at 9:24pm

I suppose it makes sense Right now iPhone is gaining share, but mostly among folks who can afford the pricier phone. Youth 12-17 are buying Samsung and young adults 18-24 are not buying LG over iPhones. But if an "entry level" iPhone becomes available under $100, I'm guessing you'll see throngs of young people jumping on the bandwagon. These are the same folks who are already accustomed to using Mac computers in school...they will be psyched at the low pricepoint to own the sleek and trendy iPhone, and i don't think the folks who can afford the heavier duty iPhones will begrudge the lower price point for a lesser iPhone, even if it is available at Walmart. (BTW Does Walmart have Starbucks kiosks?) As long as the $99 iPhone works well and doesn't over promise and under deliver, this move will allow iPhone to basically control the non-Blackberry smart phone market in the US...at least until someody comes out with something cooler...which could take a week or two at the rate we're going.

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Permalink Reply by Cindy Dunston Quirk on December 13, 2008 at 1:41am

I really don't think that will happen. Apple is very protective of their hot products and I just don't see Apple allowing the mass marketing of such a desirable item. Besides, at this point iPhones have to be activated in the Apple store and I am not certain that Wal-Mart has the facilities or personnel to make that happen.

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