Money Matters - Simplified

Grab the iPhone 5c for $45 at Walmart

Retailers like BestBuy and Walmart are aggressively cutting the price of recently launched 16GB iPhone 5C to attract a larger set of customers.

At the first stage the battle is fought between the manufacturers; Apple Inc. and Samsung. At the next level, the challenge is to make the get the product on the retailer’s shelves. Thereafter, it is left to the retailer to pass on the gadget to the ultimate consumer.

That’s the stage we are in with regard to the marketing of the latest launch from the repertoire of Apple; the iPhone 5c. The price drop war is on and the biggest beneficiary is none other than the consumer, ‘the king.’

BestBuy Vs Walmart
A day after BestBuy announced that it will offer Apple's iPhone 5c for $50 with a two-year contract; Wal-mart offered the same gadget for $45, $54 less than Apple's price of $ 99.

"This is what we do -- low prices is what we do," Sarah Spencer McKinney, director of corporate communications for Walmart, was quoted as saying in the ABC News.

"As a price leader, we are always looking for ways to surprise our customers with low prices and disrupt the competition," added McKinney.

The deal is likely to stay for the entire holiday season and is available with a two-year contract. Walmart had led the way when it offered the 5c at $79 when the phone was officially launched.

The price point of $45 is likely to exert the pull factor on many cost-conscious customers and drive them to the Walmart stores to grab the offer.
While consumers save money, retailers benefit by getting the former enter into the two year contract.

5C is, by and large, last year's iPhone with a colorful plastic casing. Meanwhile, the 5s, the up-scale version of the iphone which is equipped with a better processor, camera and a new fingerprint reader, is selling like hot cakes.

Apple divulged that it sold 9 million iPhones in the opening weekend but stopped short of revealing the sales break-up of the newly launched models.