Customers can now get the 16 GB iPhone 6 for $129, a reduction of $50 from the retailer's usual price; while the 16 GB iPhone Plus model will now cost only $229, down from the standard price of $279. Customers will also get a two-year service from AT&T Inc. ( T ), Verizon Wireless or Sprint Corp. ( S ) on purchasing iPhone 6 from Wal-Mart stores.
In addition, Wal-Mart is offering the iPhone 5S for $49 with a two-year contract, down from $79. Samsung Electronics Co.'s Galaxy S5 is also on sale for $79 compared to its original price of $139.
Besides iPhones, Wal-Mart is also offering attractive discounts on Xbox and PlayStation gaming consoles and televisions.
It seems Wal-Mart has pulled up its socks to give its customers the best deals and is leaving no stone unturned to attract holiday shoppers. In mid-November, the company had stretched the Black Friday (Nov 28) deals over five days starting from Thanksgiving Day (Nov 27) till Cyber Monday (Dec 1), per reports. (Read: Will Wal-Mart Get a Boost from 5 Days of Black Friday Sales? ).
Wal-Mart celebrated Cyber Monday from Nov 29 through Dec 5, and offered 500 online deals on electronics, toys, apparel, home decor and more on Walmart.com. (Read: Wal-Mart to Kick Off Cyber Monday with Attractive Deals )
Wal-Mart is offering deals on hundreds of items this weekend in order to celebrate the last number-sequential date this century, i.e. 12/13/14. Wal-Mart will keep majority of its stores open for 24 hours a day and will remain open until 8 p.m. on Christmas Eve, offering customers ample time to purchase these new deals.
Wal-Mart has been struggling of late with declining U.S. comparable store sales in seven of the last eight quarters due to a challenging retail sales environment and difficult consumer spending. Low-income shoppers are squeezed between stagnant wages and reduced government food stamps.
In the recently reported third quarter of fiscal 2015, Wal-Mart's earnings came in line with estimates, while revenues were better-than-expected. The company however narrowed its earnings guidance for fiscal 2015, as the company anticipates a fierce competitive environment ahead of the holiday season. (Read: Wal-Mart's Q3 Earnings In Line, Sales Beat; View Narrowed )
The company is therefore seeking new ways to boost revenues amid macro-economic headwinds like budget-strained customers, reductions in government benefits, higher taxes, tighter credit and higher group health care costs.
The move to offer discounted prices on iPhone 6 models is surely going to increase traffic at its stores. It is also encouraging that gas prices have reduced, which should increase consumer spending power a bit. This may benefit the company and other retailers in the upcoming holiday season.
Walmart currently holds a Zacks Rank #4 (Sell).
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