Wal-Mart, the top U.S. retailer is saying nothing, but rumor
has it that a smaller, $99 4GB iPhone will be hitting their stores by the end
of the month.
Published press reports quote sources from inside Wal-Mart
stores across the nations who’re saying that a 4 GB iPhone will arrive by
December 30th. One of the reports said that Wal-Mart was trying to
get it out before Christmas.
A Wal-Mart spokesperson, Ashley Hardi, told press that the
retailer had no official announcement in regards to the phone. Apple, who also
had no comment, currently sells the iPhone only through its exclusive carrier
AT&T, on Apple’s own retail site, and through Best Buy. AT&T
representatives were not available for comment.
The news arrives amid Apple’s continued domination of the
smartphone and mobile device industry, with increasing market share each
quarter, and jacking up the revenue for AT&T as well, indirectly.
Should these rumors ring true, this new, small-storage
version of the iPhone could also enable Apple to increase the iPod’s market
share, as it has been starting to decline. The music player is seen as
something of a gateway device into Apple’s computing device line, says a recent
industry report drawn up by Piper Jaffray, and thus is slowing growth is somewhat
concerning for the company.
Ken Dulaney, CP of mobile and wireless for Gartner told press
that the new iPhone would bring more business to AT&T, and that all
carriers may start using retail suppliers to expand their reach, as well as
manage costs, and this does not mean a direct competition between AT&T and
Wal-Mart. The move would make money for all parties involved
AT&T’s data services revenues are strong enough that
they can afford to pay a part of the iPhone activation fee to Wal-Mart for
channel access even after device subsidies, according to analysts. The basic
iPhone version’s mandatory two-year data plan starts at roughly $40 per month.
Dulaney is saying that the large of the revenue is not made
so much on the up-front price, but rather on the service and later likely
renewal. Thus Apple’s broadened retail market would generate greater revenue in
applications and music through its iTunes and App Store services.
According to Jack Gold, senior analyst for J. Gold
Associates, a competitive product offer of $99 would do a lot for Apple’s
market share and let it compete with BlackBerry, Samsung, Motorola and other
competitors.
He went on to note that even users who only want the iPhone
for its music functions and don’t want a data plan would be valuable to Apple
as they would increase music sales, and encourage upgrading from an iPod, which
is being done by the latter’s users less and less. It’s a win-win situation.
The third quarter of 2008 saw Apple selling 6.9 million
iPhones, which is more than the total 6.1 million sales for the phone’s first
generation, which were sold for over a year.
Piper Jaffray senior analyst Gene Munster’s latest research
note predicted the iPhone will account for 18.4% of the company’s total sales
in 2009, where it currently holds 5.7%.
