US Giant Walmart is set to sell Apple's iPhone imminently according to various sources. The phone will apparently be on sale at the world's largest retail store and chances are that it could be a $99 model and would almost certainly push for broader adoption while sacrificing a few things.
Here are five reasons why the entry-level iPhone won't be as successful as Apple will like it to be - if ever it is released.
(1) $99 with no strings attached?
Prospective customers will still need to buy the phone with a two year contract from AT&T. AT&T Nation plan cheapest tariff costs $75; that's 450 anytime any network, 5000 night and weekend minutes and 200 texts for the user. That's $1800 for the duration of the contract.
(2) Will it really matter?
As demonstrated above, there's only $100 difference between a prospective $99 lower specced model and the 8GB version. That's a tiny fraction when spread over the length of the contract. It would in effect be less taxing for cash-strapped consumers if AT&T and Apple decide to spread the cost of the iPhone over 24 months. At the end of the day, the cost of the contract, not that of the phone will be the deciding factor.
(3) What corners will be cut?
Apple will have to make some concessions if it is to sell a cheaper iPhone so as (a) no to cannibalise any sales of its higher end iPhones (b) not to have a customer backlash if the lower end iPhones is perceived to have better value for money. So what corners could be cut? Well, Apple could very easily bring out the original 4GB version, without 3G, without GPS and possibly with a less classy material. But can Apple actually afford to specced down the iPhone when facing stiff competition.