iPhone At Walmart? Yes. At $99? Unlikely.

The latest rumor is that the phones will "sell" for $197, just a few bucks cheaper than at Apple or an AT&T store. However, until Apple issues a press release, then this story is just rumor.

According to MacRumors.com, WalMart employees are not being trained about a $99 iPhone, and thus it seems extremely unlikely.

http://www.macrumors.com/2008/12/08/99-wal-mart-iphone-seems-unlikely/

Should BW be putting such news on the front page of their website?

I have a 4GB iPhone and you can put a lot of applications on it and a lot of music. It's when you put videos and movies on it that it feels a little less, but I never had a problem in over a year. It's still the same great experience.

I think it would be a good deal if ATT could offer better pricing. That's the real cost factor to me.

A point often mentioned in regards to this potential price break is that in the large scheme, (2 year agreement w/ data plan ~ $2000) $100 shouldn't make a difference to a potential rational buyer.

But then again, with the credit market revealing the average consumer's leverage, wouldn't surprise many to see a jump in sales if this was ever to occur.

Thank you Arik for the helpful article! Most articles are getting consumers hopes up for a future let down.

I’m I the only one who see’s the contradictions in this article? In the second paragraph the question is posed “Why bother with a 4GB iPhone in the first place?” the author continues “Sure you can get the price down from the $199 starting price on the 8 GB model, but you can’t fit much in the way of media and applications on a 4 GB phone” debunking their question, in the closing paragraph the author quotes an analyst on suggesting the 4 GB model would cannibalize the current 8GB and 16GB models. If no on would bother with such a ‘small’ capacity phone, how could it cannibalize sales of the larger devices? In response to the second statement, 4GB is well over 1200 songs, or approximately 90 albums, which – granted no movies or larger applications (most of the iPhone applications are relatively small in size) are installed – would suffice for all but the most fanatical audiophiles. The ‘Catchet’ isn’t fully intact as at local Walmarts Apple’s iPod products already inundate the most visible end cap of the MP3 kiosk in the electronics section. Adding the iPhone to the selection would be exceedingly more feasible than the iMac desktops and laptops as the iPhone is intended to fill the chasm between the music/video playing iPod’s and the versatile Apple computers.

P.S. Robert Brown's comment and the sourced articles suggest an 8GB, still pushing the Apple Catchet to the "Save Money Live Better" retailer as suggested by the above qouted analyst

Unlike many other handsets, Apple makes money through the App Store and iTMS. These profits will make up for giving away the phone. With competition heating up with BlackBerry (RIM), Google android, and Nokia attempting to come back, Apple could be attempting to change the game, steal market share, and turn a profit by carving out the low end market, so that the upgrades are committed to Apple. After all you'll want to move your music and apps to your next phone.

Isn't that what drug dealers do? Give away a free sample, and once you're hooked, they jack the price. Oh wait, that's why the world is on Microsoft. :-)

Another reason why would should not bother with a $99 4GB iPhone: the 8GB is already FREE in Europe. Yes, FREE!
Check the report here: http://techpulse360.com/2008/12/08/a-99-iphone-at-walmart-its-free-in-europe/

The problem isn't the price, the problem is now that Walmart is selling Iphones, the Iphone has officially lost its snob appeal.