Wal-Mart, the world’s largest retailer, plans to slash the price of Apple’s 16GB 3GS iPhone to $97 beginning Tuesday.
Apple is widely expected to unveil a brand-new iPhone next month, and could be working with retailers to clear out its remaining inventory of the about-to-be-outdated model.
At the new price, customers will save $100 on Apple’s smart phone, which currently sells for $199. The deal requires that the phone be purchased with a two-year contract from AT&T, the iPhone’s exclusive service provider.
Apple sold 8.3 million iPhones last quarter, more than twice the amount sold during the same period a year ago.
At $97, Wal-Mart’s price slightly undercuts the $99 price tag several analysts anticipated for the remaining iPhone 3GS stock. When consumers get sight of a new iPhone model on the horizon, sales of the existing model typically falls off sharply.
In the furor surrounding last month’s theft of a new iPhone prototype, Apple filed legal documents claiming that leaked details of the new model would be “immensely damaging” to the company because “people that would have otherwise purchased a currently existing Apple product would wait for the next item to be released.”