The company announced on Thursday, Sept. 12, that they will sell the iPhone 5C for $79 and the iPhone 5S for $189. The prices represent a $10 discount on the 5C and a $10 discount on the 5S from their regular retail prices through Apple and major wireless companies.
Why the lower price? Apple has been notoriously strict with its pricing, strongly suggesting the official Apple sticker price to retailers. Generally, stores stick to this scale because Apple offers a financial incentive to stores that sell at the price point (or above) according to Bloomberg Businessweek. This incentive keeps Apple’s pricing (along with their branding and messaging) simple and straightforward.
Wal-Mart, however, will not be getting a discount from Apple as a retailer. It will be taking a pay cut and hoping the cheaper price makes for larger profits.
“Because of our size and scale and what we’re able to do, we’re able to provide these prices,” Sarah McKinney, a Wal-Mart spokeswoman,