Apple May Sell 4GB iPhone for $99 at Wal-Mart

In case you missed it, Apple will be selling iPhone 3G at Walmart stores from December 28th and its employees are already receiving training on iPhone activation.Boy Genius Report claims that Apple might sell a 4GB iPhone model for only $99 with a two year contract at Walmart stores.

You might remember that Apple first introduced the iPhone in 4GB and 8GB models but had later discontinued the 4GB model and slashed the prices of the 8GB iPhone.

Apple currently sells an 8GB iPhone for $199 and 16GB iPhone for $299 with a two year contract. There are also rumors that Apple might introduce a 32 GB iPhone at Mac World 2009.

Analysts have speculated in a report that Apple could sell iPhone 3G for $99. Charlie Wolf of Needham Research had estimated that Apple could drop the subsidized price of the 8GB iPhone 3G to $99 and still manage a 42.3% profit margin:

“The financial expert estimates that the average, unsubsidized price of an iPhone 3G in the summer was $666 and so would give Apple a nearly 50 percent gross margin on each sale as well as a heavy subsidy from AT&T of $450. Both give Apple a large amount of space to adjust its price and could see the phone maker drop the price of an 8GB iPhone to $99 while still supplying a comfortable 42.3 percent margin…

Any such price drops would be potentially devastating to competitors in the market, according to Wolf. The analyst believes that a $100 cut in the iPhone 3G’s advertised price could “double or triple” projected sales and quickly overtake most other smartphones on the market and leave only successful but “niche” smartphone manufacturers like Research Motion, which produces the BlackBerry.”

Steve Jobs had also suggested that Apple needs to be aware of a possible “price umbrella” below the iPhone that competitors may take advantage of.

However, BGR is not too confident of the report and advice that it to be taken with caution.

Will you buy a 4G iPhone 3G?

-via Boy Genius Report

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