Apple’s Worldwide Developers’ Conference starts a week from today, and although most analysts are NOT expecting a new flagship iPhone, some retailers seem eager to clear some shelf space just in case. Best Buy and Target are both discounting the iPhone 5, in some cases offering up to $100 off the prices that carriers are charging.
Best Buy is offering $50 off all iPhone 5 models, and up to $100 for those customers ready to sign a two-year contract with AT&T. So the 64GB model is $350, the 32GB model is $250, and the 16GB model is $150. Target is discounting both the iPhone 5 and the iPhone 4 on AT&T, Sprint and Verizon by $50.
Apparently Best Buy is undaunted by the losses it incurred through discounting the iPhone 5 during the holiday shopping season. It offered similar $50 discounts at that time, but then Walmart countered with even lower prices. Because it advertises that it will match competitors’ prices, Best Buy was forced to lower its prices even further, and ended up losing money on the iPhone 5.
Best Buy has been struggling due to competition from online retailers, and clearly sees opportunity in mobile devices, which many consumers want to touch and try before buying. The retailer recently committed to open 1,400 Samsung kiosks in its stores this year, in a bid to offer Android buyers an alternative to the Apple stores. But unlike the Apple stores, the Samsung kiosks will not repair broken phones and tablets.
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