Hard to say if this will happen or not
Last modified on Tuesday, 09 December 2008 08:33
Sources are still telling us on one hand that Wal-Mart will indeed get to sell a 4GB iPhone for $99. Currently, Wal-Mart sells both the 8GB and 16GB models for $199 and $299, respectively.
The rumors about the $99 iPhone continue to gain momentum, as Apple has stated publically that they need to get into the $99 cell phone space to be truly successful and to drive up user adoption of the phone.
Several of our moles insist, however, that the Wal-Mart $99 4GB iPhone plan was already scrapped and Apple has no plans to move into the $99 cell phone space at this time. Still, some shadow dwellers insist that it is already a done deal and Wal-Mart is expecting delivery before Christmas in order to rev up iPhone sales before the end of the year.
Our take is that it is hard to say what Apple’s plans might be here. While the concept of a $99 iPhone is a good one, we are just not sure that it would be worth Apple’s time and energy to start playing in this price space.
While it would drive up the adoption rate, which would be good for Apple, it could have the effect of devaluing the reputation of the iPhone as a higher-end device, making users expect prices to drop on the higher-end models.