Is This Major Sale Another Sign of a New iPhone Launch?

more iphone5Yet another major retailer has launched a sales promotion aimed at reducing its stock of older models of iPhones as Apple (NASDAQ:AAPL) resellers anticipate an iPhone 5S debut this fall. Beginning on June 22, Walmart (NYSE:WMT) is reducing the price of the iPhone 5 from $189 to $129. This is over 30 percent off the iPhone 5’s regular price.

The savings on the iPhone 4S is even greater. The cost of the iPhone 4S will go from $89 to just $39 – almost 70 percent off the regular price.

However, as with any sales promotion, there are a few stipulations. Customers must sign up for a two-year service contract with AT&T (NYSE:T), Sprint (NYSE:S), or Verizon (NYSE:VZ).

Walmart’s heavily discounted iPhones may increase the pressure on its competitors pricing schemes. Best Buy (NYSE:BBY) is currently running its own iPhone promotion by offering customers a free upgrade to an iPhone 5 if they bring in their old iPhone 4 or iPhone 4S. Similar to Walmart’s promotion, Best Buy customers must also upgrade with a 2-year contract at AT&T, Sprint, or Verizon.

All Things D reports that Best Buy lost about $65,000 in one day last year when it was forced to sell the iPhone 5 at Walmart’s prices thanks to a price-matching guarantee. Best Buy later accused Walmart of false advertising since it reportedly didn’t have enough iPhones in stock.

Here’s how Apple and Walmart closed out on Friday.

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Here’s how Apple traded on Monday:

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