Could Apple Inc. (NASDAQ:AAPL) be ready to get rid of as many high-priced smartphones as possible before newer, cheaper models hit the market? One sign that may point to yes is the glut of unlocked iPhone 4s and 5s Wal-Mart is about to offer consumers who are currently on pay-as-you-go plans.
The Wall Street Journal reported early on Wednesday that Apple is working on a lower-end iPhone, citing unspecified sources it dubbed “briefed people.” Speculations on how the phone would be cheaper include a swap of polycarbonite casing for the aluminum currently used among others. This is all pure speculation at this moment, however as spokespersons for Apple have declined to comment.
But it appears that Apple Inc. is ready to get the iPhone 5 and iPhone 4 to as many markets as possible, as a deal was just cut with Wal-Mart’s Straight Talk Wireless in order to offer the phone to prepaid customers who pay $45 monthly for unlimited talk, data and text services. A brand of TracFone Wireless, Straight Talk currently provides services to a section of 21.6 million U.S. subscribers. When all the recent T-Mobile and AT&T customers are factored in, it’s clear that Apple Inc. (NASDAQ:AAPL) is trying to move product on a much larger and quicker scale than usual though the reasons for doing so can be as simple as trying to grab more market share.
What makes this plan different, and gives it an edge over competition from other pay-as-you-go firms like Virgin Mobile, is that Wal-Mart can also offer its customers financing through credit plans that offer zero-percent interest for part of a finance period, making a $649 white or black iPhone 5 accessible to a prepaid consumer for a cost of roughly $70 a month. This move shows that Apple is ready to consider markets that can’t traditionally afford an iPhone in order to more effectively compete with burgeoning Android markets. Who’s to say where Apple will stop in their bid for more marketshare? There’s certainly a still a clamor for Apple products.
In Las Vegas on Tuesday, Senior vice president of Entertainment for Walmart U.S., Seong Ohm said, “We believe customers shouldn’t have to choose between saving money and having the latest technology,” as he explained the philosophy behind the partnership to bring prepaid consumers the iPhone5. “Now customers can have the coveted iPhone with unlimited talk, text and data without a contract.”
Some things pertaining to how the phone operates will still remain the same, so Apple Inc. (NASDAQ:AAPL) iPhone customers fed up with AT&T’s network shouldn’t celebrate their new found freedom just yet. Straight Talk phones will still use AT&T infrastructure to operate. There is also not any indication of whether or not the Straight Talk phones will support AT&T’s LTE network yet.
An informal survey of users conducted by That’s It Guys, however, finds that Straight Talk users currently only receive HPSA+ for their data and will not be operating in speeds that are “true” 4G. “Techies” often call these speeds 3.75G because of their slightly slower rates.
