Walmart Slashes Prices for iPhone 5S and 5C - Permanently
Walmart is cutting the prices of their iPhone 5S and 5C in a great effort to make space for the incoming iPhone 6's. Will they be able to tempt iPhone fans into purchasing an older model of the iPhone instead of waiting it out for a new one?
At Walmart, the iPhone 5S was once priced at $149 with a two-year contract. Alongside it, the iPhone 5C was priced at $49. The prices for the two phones have been slashed, now sitting at $99 for the 16GB 5S and $29 for the 16GB 5C.
The deal is only available at the Walmart store. Online purchase is not included.
The iPhone 5S starts at $199 in the Apple store.
When the company was asked why they were taking such an effort, they did not say it was to create space for the iPhone 6. Instead, they said they want to provide their customers with the technology they are looking for.
Brian Colello, an equity analyst with Morningstar said that this is a slow time of the year in regards to iPhone sales, so one could sympathize Walmart's reduction of prices.
"Walmart's decision is a tactical one to clear inventory or drive traffic," he also said. This does not mean that there will be a sharp drop in demand for iPhones.
Walmart offered a similar price reduction recently, but the only difference about this promotion is that this price reduction is permanent.
iPhone 5S sales have been sharp ever since the device was introduced in September 2013. The 5C model did not receive the same kind of reaction.
In April, Apple announced that they had sold more than 43.7 million iPhones in its second quarter. This was less than the 51 million iPhones it sold in its first quarter, including the holiday season.