Prices of iPhones Slashed at Walmart

Walmart had aggressively slashed its prices on the iPhone 4S and the iPhone 5 made by Apple. Starting yesterday, the iPhone 5 will cost $129 and the iPhone 4S will be just $39. For the prices to be valid, a contract for 2 years must be signed with Sprint, Verizon or AT&T.

This is not a first for Walmart in offering drastically cut prices for devices made by Apple. Last December, Walmart offered the iPhone 4S for just $47 and the iPhone 5 for $127 for its holiday promotion.

When asked, Walmart said the pricing was permanent for these items. The prices are only valid at stores and not through the Internet.

The drop in prices is also important since Apple historically limited how much retailers could cut prices on their products. Although, retailers like Walmart often discount products by small amounts, but cutting prices by over 30% and by nearly 70% is unprecedented.

The drastic drop in prices make it difficult for other retailers and it is unknown at this time whether others will follow suit. Some retailers price match on Apple products, but Best Buy said last January it lost in one day over $65,000 price matching the iPhone 5 to the sale price of Walmart.

It is not clear why the largest retailer in the U.S. is lowering its price so aggressively on the two Apple smartphones.

One reason could be an excessive amount of inventory it wants to clean out prior to the rumored launch of the iPhone 5S this fall. The company might want to just kick start additional sales at its stores.