Why Are These Retailers Dropping iPhone 5C Prices?

Source: Apple.com

When it comes to iPhone 5C shopping, early may not necessarily be better. Only two weeks after the device was released, Wal-Mart Stores Inc. (NYSE:WMT) is offering Apple’s (NASDAQ:AAPL) iPhone 5C for $45 when it is purchased with a two-year service contract. Meanwhile, both RadioShack (NYSE:RSH) and Best Buy (NYSE:BBY) are offering customers a $50 gift card with their iPhone 5C purchases, which will bring the total price of the iPhone 5C down to $50 at those retailers.

Walmart’s iPhone 5C sale will run throughout the holiday season, according to a company spokeswoman who spoke to MarketWatch. RadioShack starts its sale on Saturday, while Best Buy’s sale kicks off Friday.

All these retailers are selling the iPhone 5C for a lower price than Apple does. Apple currently sells the iPhone 5C with a two-year contract for $99 through its website.

Walmart already surprised many industry watchers by offering the 16GB iPhone 5C for $79 during the device’s launch weekend. Most retailers don’t go below Apple’s set prices since the company typically provides strong marketing incentives for companies that keep iPhone prices above a certain level.