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November 19, 2008 9:55 AM PST

Wal-Mart to carry iPhone after holidays?

by Tom Krazit

Apple could soon have another distribution channel for the iPhone: Wal-Mart.

(Credit: CNET)

The largest retailer in the world could be getting the iPhone.

Wal-Mart won't have the iPhone at every location come the end of December, if a report from the Boy Genius Report is accurate. But Apple will have iPhones in 2,500 stores in the U.S. and an additional 69 Sam's Club warehouse stores on December 28, according to the report.

It's not clear what price will be charged for the iPhone inside Wal-Mart, but it would be hard to imagine Apple embracing the idea of significant discounts even though CEO Steve Jobs has talked of needing to stay aware of lower-priced competitors. Wal-Mart also offers T-Mobile's Android G1 phone, and though CNNMoney.com had reported that the famously low-price retailer would be offering the G1 for a $30 discount, a Wal-Mart store in San Leandro, Calif., was selling the G1 for the standard $179 on Wednesday morning.

Apple has shown a willingness to embrace the big-box types over the past few years. iPods can be found at retail stores across the country, and electronics behemoth Best Buy devotes significant space for all of Apple's major products inside many of its stores.

But what's surprising about this report is the timing, however: three days after Christmas? Perhaps Wal-Mart wouldn't have been able to get ready or train their staff in time for the holiday season, but with iPhone sales expected to decline slightly off last quarter's totals, you'd think Apple would have wanted a major distribution channel on line during the holiday rush.

See also:
Sources: Apple, music labels talk DRM-free songs

Tom Krazit writes about the ever-expanding world of Internet search, including Google, Yahoo, online advertising, and portals, as well as the evolution of mobile computing. He has written about traditional PC companies, chip manufacturers, and mobile computers, spending the last three years covering Apple. E-mail Tom.
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by jd_in_sb November 19, 2008 10:46 AM PST
Thanks writing for your great article. Your question about why Wal-Mart wouldn't start selling before Christmas shows me, however, that you (and perhaps others) don't realize that it is impossible to give an iPhone as a Christmas gift.
This is because a 2 year AT&T contract is required to purchase an iPhone. That doesn't work when you want to give an iPhone as a surprise gift on Christmas day. And if you give someone a *gift certificate* for an iPhone as a present, that still means the phone will actually be purhcased AFTER Christmas.
So Wal-Mart not selling before Christmas really means nothing.

Merry Christmas!
- John
Reply to this comment
by Tom Krazit November 19, 2008 11:06 AM PST
It may be difficult to give the iPhone as a "surprise" present, but not everyone cares if they wake up on Christmas morning to unwrap their shiny new phone, or get it two weeks beforehand. Not to mention the fact that anyone who has an ATT family plan could buy an iPhone for their spouse/child/bartender, and still do the surprise thing if they wanted to.

The handset sellers generally see a 15 percent increase in sales in the fourth quarter compared to the third, so apparently some people do spend more money on phones before the holidays than they do during other times of the year.
by aka_tripleB November 19, 2008 12:49 PM PST
I doubt the contract issue is much of one for the people who buy cell phones for gifts. How many people buy phone for other besides those who are buying one for a child or significant other? They're like to be the one in charge of the account so the 2-year contract will be under their name. Cell phones for anyone else don't make good presents unless their current phone needs to be replaced.

Are you one of those people who really would give the gift that keep on taking?
by coryschulz November 19, 2008 10:52 AM PST
You guys are so harsh on the writers here. I kinda feel bad for them sometimes.
Reply to this comment
by loose_screw November 20, 2008 3:41 AM PST
I agree, but what are you gonna do? Can't really disable or moderate comments on a web 2.0 news site, as that would drive away traffic. Besides, I sometimes read the articles for reader reactions to see if others feel the same way I do.

The writers are just going to have to develop a thick skin and take things at face value.
by Penguinisto November 19, 2008 11:42 AM PST
@cory - I guess it's easier (for all sides) to perform ad hominem... *shrug*

@Tom: Maybe it's just a contract thing? Wal-Mart's logistics chain has been described with some pretty weird language at times... and in downright vulgar terms at others.
Reply to this comment
by jasctt November 19, 2008 12:47 PM PST
fap fap fap ****Iphone...AARRRGGGHHH (cue orgasmic moaning a la Elite dying howl on HALO)*** Enough already, folks. I heard that if you let a person with cancer talk on an Iphone, it will cure their cancer. Can you confirm, CNET?
Reply to this comment
by AppleSuxLeo November 19, 2008 1:38 PM PST
Good one.
by Seaspray0 November 19, 2008 1:55 PM PST
Isn't one of the prerequisites for anything to be sold in walmart was that it had to be made in china?
Reply to this comment
by dirty55409 November 19, 2008 4:59 PM PST
Nope it just has to be sold at dirt cheap prices so they can maximize profit and continue to increase the divide between their poorly paid staff and their CEO's fat wallets. They also typically have to drop the prices so low on an item that it hurts the manufacturer and other retailers.
by cbaisa November 20, 2008 1:58 AM PST
I think they are made in China. That's one of the reasons Apple made $330 profit off of each first gen iphone.
by loose_screw November 20, 2008 3:44 AM PST
Well, I guess since Walmart sells ipods, and AT&T phones, I'm not too surprised to see them start carrying iphones now that they're pretty ubitiquous. Apple may have decided to wait until after the holidays to make it available to Wally World to minimize any perceived tarnishing that associating the iphone with "Walmart" might have during the critical holiday shopping season. High end snobs may turn their noses at the thought of spending their money on something that's available at a low end retailer like Walmart.
Reply to this comment
by mderby05 November 20, 2008 6:37 AM PST
I think that walmart will maintain the price standard, and offer better financing as a result.... 24 months no interest, perhaps, on an iphone purchase? Not only will that keep the client base strong, but walmart can still profit off of everything else sold with their credit card. Side note: Most Best Buy stores saw far less activations and sales of iPhones than expected when they were released at their stores. Apple, for the most part, knows what they are doing, and steve & co. really don't need this as much as walmart does.
Reply to this comment
by Josh BSN November 20, 2008 10:38 AM PST
they'll be selling them without the contract.
Reply to this comment
by dfl2002 December 25, 2008 11:17 AM PST
Apple IPhone already has modem to connect to Internet.
Why Apple does not make iPhone capable to to a modem to our Laptop??
Please answer me.

David
HiDavid11@yahoo.com
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