Wal-Mart to sell Apple iPhones at $99 in late December: report

[JoeFrat]

A cheaper version of Apple Inc's (AAPL.O) iPhone will be sold at Wal-Mart Stores Inc (WMT.N) for $99 later this month, the New York Post said.

Two models of the popular device will hit shelves at the retail giant, the paper said, citing employees at several stores.

Employees also told San Jose-based Mercury News that the $99 iPhones would be 4-gigabyte models, and that Wal-Mart was attempting a pre-Christmas launch.

Apple is in the first stage of a smartphone platform land-grab against companies like Google (GOOG), Microsoft (MSFT), and BlackBerry maker Research In Motion (RIMM). So far, none of these companies have made a phone as good as the iPhone. But they're getting closer.

The iPhone went on sale starting July 11 at $199 for the model with 8 gigabytes of storage and $299 for the 16-gigabyte version.

However, iPhone users need to sign up with data service provider AT&T Inc (T.N) for a plan that costs at least $30 a month for unlimited Web access and another $5 for 200 text messages or $20 for unlimited texting.

Apple wouldn't be foolish to lock up as many customers as it can now by making its market-leading gadget even more affordable.

Wal-Mart has been gaining market share and clout in the recession as cash-strapped shoppers seek out its low prices.

Neither Apple nor Wal-Mart were immediately available to comment.

[Sumit21]

Late last month, Piper Jaffray analyst Gene Munster estimated that Apple could lower the iPhone's price by $150 in the next six months and keep its margins the same, due to cheaper component pricing. If Apple could lower the price by $100 in the next three months to boost market share in a platform race where market share matters.