Walmart Drops 16GB iPhone to $97

| News

Walmart raised a few eyebrows Tuesday morning when it dropped the price of the 16GB iPhone 3GS from US$199 to $97. The surprise price reduction added fuel to the rumors and speculation that Apple will introduce the fourth generation iPhone during its annual World Wide Developers Conference on June 7.

The reduced price is available for both the black and white models, and requires the usual two-year service contract.

Apple is expected to unveil the fourth generation iPhone at WWDC during a keynote presentation hosted by CEO Steve Jobs. Based on a series of leaks, the updated model will likely include the first major redesign of the unit’s case, a 5 megapixel camera and flash, a faster processor, and potentially a front facing camera, too.

When Apple released the iPhone 3GS, the company kept the 8GB iPhone 3G in its lineup for $99. Assuming Apple continues to keep a low cost version of the combination iPod and smartphone in its product inventory, the 16GB iPhone 3GS may take the iPhone 3G’s place.

Apple hasn’t confirmed that it will introduce the fourth generation iPhone at WWDC, but the timing matches the company’s usual product update pattern.

Sign Up for the Newsletter

Join the TMO Express Daily Newsletter to get the latest Mac headlines in your e-mail every weekday.

6 Comments Leave Your Own

Jeff Gamet

I can’t imagine Walmart reducing the price of the 16GB iPhone so much without Apple’s approval, so it wouldn’t surprise me at all if this really is the new low-end model with low-end pricing. That also tells me that there’s a good chance the lowest capacity fourth generation iPhone will have at least 16GB or RAM and probably more.

geoduck

So…
why should I get an iPodTouch?
The iPT starts at $219 (CDN) for the 8Gb unit. The $97 iPhone has a camera unlike the iPT. Why wouldn’t it be a good tactic to get the $97 iPhone and never activate it, just use it WiFi? Why won’t this cut into iPT sales?

jas

geoduck:  simple, the purchase REQUIRES a 2-year AT&T service agreement (which is a CONTRACT, with a $379 early termination fee).

David Nelson

Indeed, the “real” cost of an iPhone is significantly higher but you don’t see it up front. It’s subsidized by your phone bill and paid by AT&T to Apple.

You can only buy an iPhone without a contract and activation if you pay a few hundred dollars extra.

geoduck

I knew there had to be a catch. As Dave Nelson said the ‘real’ cost of the iPhone is higher and hidden.

BurmaYank

My iPhone 3G is due for a 2nd anniversary upgrade/renewal in October, so if I can’t afford a new 4G then, I’m thinking I’d be quite happy with a new 3GS with multitasking, etc. instead.

Log-in to comment