Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Wal-Mart slashes iPhone price to $97

By Chavon Sutton, staff reporter


NEW YORK (CNNMoney.com) -- Wal-Mart, the world's largest retailer, plans to slash the price of Apple's 16GB 3GS iPhone to $97 beginning Tuesday.

Apple (AAPL, Fortune 500) is widely expected to unveil a brand-new iPhone next month, and could be working with retailers to clear out its remaining inventory of the about-to-be-outdated model.

At the new price, customers will save $100 on Apple's smart phone, which currently sells for $199. The deal requires that the phone be purchased with a two-year contract from AT&T, the iPhone's exclusive service provider.

"It is our commitment to always lead on price," Mehrdad Akbar, Wal-Mart's (WMT, Fortune 500) senior category director for wireless, in a prepared statement about the price change.

Apple sold 8.3 million iPhones last quarter, more than twice the amount sold during the same period a year ago.

Wal-Mart's pre-Memorial Day price whack comes as technology giants such as Google (GOOG, Fortune 500), Research in Motion (RIM) and Hewlett-Packard (HPQ, Fortune 500), which recently snapped up Palm, vie for top dog status in the smart phone market. Industry analysts say that worldwide smart phone sales topped 54 million units in the first quarter, up nearly 49% from a year ago.

At $97, Wal-Mart's price slightly undercuts the $99 price tag several analysts anticipated for the remaining iPhone 3GS stock. When consumers get sight of a new iPhone model on the horizon, sales of the existing model typically falls off sharply.

In the furor surrounding last month's theft of a new iPhone prototype, Apple filed legal documents claiming that leaked details of the new model would be "immensely damaging" to the company because "people that would have otherwise purchased a currently existing Apple product would wait for the next item to be released."

-CNNMoney.com senior writer Parija Kavilanz contributed to this report To top of page

Index Last Change % Change
Dow 26,017.81 -97.84 -0.37%
Nasdaq 7,296.05 -2.23 -0.03%
S&P 500 2,798.03 -4.53 -0.16%
Treasuries 2.61 0.03 1.28%
Data as of 7:06am ET
Company Price Change % Change
Kinder Morgan Inc 19.01 -0.56 -2.86%
AES Corp 11.53 0.81 7.56%
KeyCorp 20.82 -0.44 -2.07%
Oracle Corp 50.23 -0.04 -0.08%
Wells Fargo & Co 63.95 0.07 0.11%
Data as of Jan 18
Sponsors

Sections

More than 5% of DACA recipients have started their own businesses since enrolling the program, according to a recent survey. More

In the latest sign change may be afoot at the Consumer Financial Protection Bureau, interim director of the agency Mick Mulvaney asked for zero funding in its quarterly budget request. More

Amazon's short list of contenders for its HQ2 includes major cities like New York and Los Angeles, but also some surprises such as Columbus and Indianapolis. More

Three changes under the new federal tax law mean that the number of tax filers hit by the AMT will drop by about 96% to an estimated 200,000. More