I was listening to the radio on the drive in this morning and heard that Walmart will begin to sell $99 iphones! This is not a rumor but it’s now been confirmed that Apple will allow Walmart to sell the 4 GB iphone for $99 later this month!
To buy the phone, you will need to sign up for a 2 year service agreement and have a monthly data plan for $30/month! But currently Apple is only selling the 8 GB model for $199 and 16 GB model for $299.
What does this mean and say about our economic times? A LOT!
Everyone knows Apple does not typically strip down and their computers, laptops, or ipods for less money. Nope instead they bring out a newer version with more memory, technology, slimmer, etc and sell the new model for the same price as the old. And Apple stops producing the old models. But why are they suddenly bringing back the older 4 GB model and selling it at Walmart for a stripped down price?
Personally I think it’s because people aren’t buying the iphone as quickly as they projected. People are hesistant to spend $200 on a phone AND have to pay $30/month extra to use it! With AT&T cheapest plan that’s $39.99+$30 = $69.99 + taxes = $80/month for a cell phone.
Yes a cell phone is a NEED not a WANT for many people. Those who only have cell phones and no land based lines, they need a reliable cell phone. But they don’t NEED a luxury iphone. They don’t need an extra $30/month data plan. The truth is that very few people need to have internet access 24/7. Those who do typically have their employers pay for it. So an iphone is a wanted luxury, not a necessity.
And I believe that in these hard times, Apple is suddenly realizing people are buying less ipods, less iphones, less laptop computers as much. People are keeping their older luxury goods and are not in as much a rush to replace them as previously.
Also with people losing jobs left and right, I’m sure people are reconsidering whether they want to tie themselves into a 2 year contract for a minimum of $80/month? That their minimum cell phone bill will be double what it could be?
My DH nearly salivated again over the iphone when we heard the news in the car. But honestly after we had lunch this weekend with friends I’m more against than EVER. We had lunch with this couple who just had a baby. The husband just got an iphone for work and my DH and him spent the entire lunch talking about the applications and playing with the phone. They were ignoring the wife and myself and any conversation other than the phone. The wife tells me she hates the phone, her husband all he does now is talk about it and is constantly playing with it. Like how they were playing with it over lunch and barely eating. She said she wanted to toss it out the window, if her husband did not need it for work (yes there is a specific application for his job that he sells to companies for his employer).
So while I might give in eventually I really want to fight against my DH becoming obsessive with the phone. I can’t imagine what I would do to him if he pulled out an iphone during a meal out and ignored me. We might not have an iphone. My friend the wife? She banned it from meals out with just the two of them and they had a huge fight about it. In fact during lunch she kicked him trying to get him to put it away.
But I wonder if this is a sign that people are spending less? This inducement by Walmart and Apple acknowledging that people don’t want the $199 and $299 current iphone models out because of price. Whereas before they were standing in line paying $499 and $599 just two years ago summer of 2007 when it came out?
9 responses so far ↓
1 fitwallet // Dec 8, 2008 at 10:54 am
“The husband just got an iphone for work and my DH and him spent the entire lunch talking about the applications and playing with the phone. They were ignoring the wife and myself and any conversation other than the phone. The wife tells me she hates the phone, her husband all he does now is talk about it and is constantly playing with it.”
This is EXACTLY why I don’t want my girlfriend to get one! I can’t stop her, of course. But we now have 3 friends with iPhones, and all they do is talk about how amazing they are and play with them obsessively. My housemate plays games on the darn thing while she’s microwaving dinner. Can’t we be without technology for 5 minutes of the day? I had to ask one friend to please stop showing my girlfriend the many cool things her iPhone can do, because we can’t afford to buy one. But it’s going to be mighty hard to convince my girlfriend she doesn’t need one when both of our current cell phone plans are up next year.
2 Revanche // Dec 8, 2008 at 12:05 pm
“The wife tells me she hates the phone, her husband all he does now is talk about it and is constantly playing with it. Like how they were playing with it over lunch and barely eating.”
Um, it doesn’t seem like it’s a phone or financial problem so much as a compulsive people problem… it’s sad that they have to fight about his inattention during meals together and actually ban the thing.
I do completely agree that the pricing structure is exhorbitant. Maybe the data plan pricing doesn’t seem that expensive in comparison to other data plans, but the fact that it’s mandatory gets to me.
3 amy // Dec 8, 2008 at 1:31 pm
Love reading your site. Just have to say here that I am sorry your friend is married to such a rude man, and her shifting blame for his behavior to apple’s iphone is sad.
Amyway, I will continue to enjoy reading your financial analysis, commentary, and insights each day. Keep up the good work.
4 LivingAlmostLarge // Dec 8, 2008 at 1:32 pm
Earlier this year I discussed why I keep a basic cell phone plan.
http://www.livingalmostlarge.com/2008/09/27/why-i-keep-a-basic-cell-phone-plan/
The truh is Revanche, people nowadays can barely survive a minute without being on the cell phone as FitWallet also agreed.
5 AJ // Dec 8, 2008 at 2:10 pm
You got the facts half right. Wal-Mart will indeed carry the iPhone but it will not cost $99.
6 Tim // Dec 8, 2008 at 4:57 pm
until i can buy one cheap and unlocked, i’m not getting one and i’m a gadget guy. besides, all my cellphones have been primarily used as alarm clocks. the only person who calls me is my wife. i guess it is good that the people we know aren’t phone talkers. i guess we are just old fashion and prefer to talk to people face to face and enjoy their company rather than texting and sms’ing every moment of the day.
7 Fabulously Broke // Dec 8, 2008 at 5:50 pm
I can’t stand it when technology takes over the dinner table too…. I can’t believe she had to kick him to get him to put the phone away!
8 LivingAlmostLarge // Dec 9, 2008 at 10:22 am
Nope, many people prefer chatting face to face. I am with you FB, that our generation of people are becoming exceptionally rude. I place my DH in that category.
9 TStrump // Dec 11, 2008 at 2:14 pm
$99 for an iPhone!?
In Canada, we are totally ripped off – the cheapest iPhone is $199 AND you have to sign up for a 3-yr plan. Plus, the plans aren’t unlimited.
I’m still getting one, though.
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