According to Associated Press,
) surprised buyers by offering its two latest versions of iPhones
- iPhone 5C and iPhone 5S - at discounted prices at
). The retail giant will sell iPhone 5C at $79 instead of its
list price of $99. Similarly, iPhone 5S will be available at $189
compared with the list price of $199.
Although Walmart is selling the phones at a discounted price,
it will pay Apple its full selling price, thus not affecting the
Apple launched the two versions of iPhone - iPhone 5S - an
upgrade to its existing iPhone 5 - and a low-cost phone, iPhone
5C a couple of days back.
iPhone 5S comes in three colors - dark gray, silver and gold -
and is targeted at premium consumers. The phone features a faster
processor, a new fingerprint scanner (Touch ID) and a smarter
8-megapixel camera, which can capture 10 frames a second in
"burst" mode. The phone is also equipped with a chip that tracks
movement as customers carry it around.
iPhone 5C, available in five colors - blue, green, pink,
yellow and white - targets medium- and low-end consumers. The
devices come with a polycarbonate cover instead of aluminum. The
phone is equipped with most of iPhone 5's technology.
Apple is conscious of the fact that although the iPhones are
affordably priced, many customers will not part with their cash
readily. Thus, it is experimenting to see if providing the goods
at discounted prices results in faster and profitable deals.
The discount offer for iPhone 5C will last till Sep 25, and
pre-orders will be served on a first-come, first-served basis.
iPhones 5S, however, are not available for pre-orders.
The investor community and shareholders were disappointed with
AAPL as the pricing of the so called low-cost smartphones did not
match their expectations. The move to offer them at discounted
prices may help the company to regain investor's confidence.
The discounted iPhones are also expected to boost Walmart's
sales in the coming quarters. In its recently concluded
second-quarter fiscal 2013 earnings, Walmart missed both the
earnings and revenue expectations for the second time in a row.
Amid the challenging retail environment, WMT also lowered its
fiscal 2014 earnings and revenue guidance.
Other Stocks to Consider
Both Walmart and Apple carry a Zacks Rank #3 (Hold). Other
retailers that are presently doing favorable business include
Delhaize Group. (
Koninklijke Ahold N.V.
). While Delhaize carries a Zacks Rank #1 (Strong Buy), AHONY
carries a Zacks Rank #2 (Buy).
APPLE INC (AAPL): Free Stock Analysis Report
AHOLD N V ADR (AHONY): Get Free Report
DELHAIZE-LE (DEG): Free Stock Analysis Report
WAL-MART STORES (WMT): Free Stock Analysis
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