WalMart slashes prices of iPhone 3GS to $97

CNN Money ^ | May 24, 2010: 7:39 PM ET | By Chavon Sutton

[Swordmaker]

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iPhone next month, and could be working with retailers to clear out its remaining inventory of the about-to-be-outdated model.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.

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[GeronL]

A lot of people who can’t afford $199 will give the $97 phone a good look I am sure. Especially when AT&T is no longer the exclusive carrier.

[Swordmaker]

iPhone 3Gs price slahed to $97 at Walmart in anticipation of iPhone 4G roll-out. PING,

iPhone price drop Ping!

If you want on or off the Mac Ping List, Freepmail me.

[TheStickman]

Wish Sprint had snagged the iPhone deal instead of AT&T. I’d be a happy iPhone owner I have no doubt.

Enjoying my HTC Hero a LOT however :)

[Swordmaker]

A lot of people who can’t afford $199 will give the $97 phone a good look

I think this price will only be for the AT&T version and only with a two year commitment with a $375 early termination fee. The new iPhone 4G will be the one that will be available on other networks as well as AT&T if that is going to happen.

[Mr. K]

is Sprint good?
I had verizon and those lying bastards will NEVER get another penny out of me

[Dallas59]

$97....and another $97 a month to run it.

[whence911]

"Especially when AT&T is no longer the exclusive carrier."

When will that be and which other carriers will have the i-phone?

[James C. Bennett]

Will the 4G iPhone be offered sans contract, any time in the future? I’d heard the 3GS is offered in that manner in ATT stores. I’d buy one in a heartbeat, if that were the case. I travel frequently (L.A., London, Sydney, Bangalore), and need a phone whose SIM card can be swapped several times a year.

The iPhone 3GS is the best handheld device ever designed. I’m not sure deviating from the minimalism in designing the 4G was a good idea. I have to see how Android 2.2 fares, in the future months.

[whence911]

What happened with verizon?

[bigbob]

Amen to Sprint...SERO plan still best deal going.

Would prefer a Droid over an I-anything though.

[MediaMole]

The early termination fee won’t go up until June 1, so this may be a chance to get a 3GS for a reasonable deal.

I predict that everyone else will offer it for around $99 on Memorial Day Weekend as well.

[Aria]

I have T-Mobile and am pretty happy with the android.

[BigCinBigD]

I would not be seen in public with an iphone. I just got the HTC Touchpro2 so I can call, text and surf like a adult.

;o)

[I see my hands]

"I just got the HTC Touchpro2 so I can call, text and surf like a adult"

I figure I'm an adult therefore what I do is what an adult does.

[GeronL]

I don’t know the exact date but its coming

[Do Not Make Fun Of His Ears]

Are you that doofus on the Mac vs. PC ads?

;-D

[newheart]

Could not agree more. I’d gladly pay 3 or 4 hundy for an iPhone 4G if it wasn’t shackled to AT&T. ( I paid 5 for a Blackberry three years ago.) And I agree, my HTC Hero is a surprisingly reasonable substitute. If it only synched with iCal or MobileMe.

[Aria]

My HTC G1 was stolen so I had my choice of a HTC MyTouch or a Motorala Cliq - and today I ended up choosing the HTC. Not totally sure this was the best one. Had to do this online with the insurance company so haven’t actually seen them to compare.

I did like the real keyboard on the G1.

[IYAS9YAS]

I had verizon and those lying bastards will NEVER get another penny out of me

Been with Verizon ever since they bought out AirTouch Cellular in Idaho back in the late 90s. Never had a problem they didn't fix.