Apple, often lauded for its strict pricing policies, appears to be getting more promotional this holiday season.
On Friday, Walmart said it would begin selling the new iPhone 5 at $127, down from an original price of $189.97. The deal is valid with a two-year wireless contract. That's well below Apple Stores' ticket price of $200. Best Buy also has a deal at $149.
The 16 GB iPhone 4S is being offered at Walmart at $47, versus an original price of $89.97. Best Buy is offering it for $49.99, and Apple for $99.
Other Walmart deals include a 16 GB, third generation iPad with WiFi for $399, down from $499. Buyers also receive a $30 iTunes card. Best Buy is selling the same model for $499. Apple offers the iPad 2, which doesn't have a Retina display and a slower processor, for the same price on its website.
The Walmart offers will be available for 30 days in about 3,000 of its stores until supplies last. They are not available online. Not part of the discount is the latest, fourth-generation model iPad.
The deals appears to be a coup for Walmart, which can tout the best Apple deals this holiday season. Target also has some Apple discounts but not as steep as Walmart's.
"We worked together with them on this," Sarah Spencer, Walmart spokesperson told Reuters. "They are a great partner."
While Apple has run discounts in the past, it's rare to have a new item such as its iPhone 5 selling at a cheaper price elsewhere than at Apple Stores. Some said the seemingly higher level of promotions this holiday season could be a response to pricing pressures from competing smartphone and tablet providers. The move also comes as Walmart in September indicated it would stop selling Amazon's Kindle line after Target did the same in the spring.
Speaking to Money's Life Inc. blog, Brian Sozzi, chief equities analyst at NBG Productions, believes Apple's rapid launches may be leading to more promotions being found in the marketplace. He was concerned that consumers seeing discounts may be more apt to wait instead of paying full-price for new products as they've typically done in the past.
He also said Apple Stores' branding could also be undermined by the deals across the marketplace.
"You start to worry about, well, mixed messages," said Mr. Sozzi. "You now have consumer discounts (at) Wal-Mart stores, and then a full-price experience at a mall-based store."