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iPhone 5 Walmart ads bring Best Buy $65,000 profit loss

by Nicole
January 5, 2013 at 8:53 am

Various retailers such as Best Buy and Toys “R” Us have complained to attorneys general in several states about Walmart’s advertising campaign for the iPhone 5 and other devices.

Credit: Apple

According to The Wall Street Journal, the retail giant had proposed a$ 127 price for the iPhone 5 on a two-year subscription just before Christmas, while the smartphone was offered at $ 150 by other brands.

Best Buy complains about having lost $ 65,000 in profit the day Walmart announced the ad on Facebook, since they had to sell the iPhone 5 at the same price as the competition.

Best Buy also accuses Walmart of not having a sufficient number of iPhones available.

Walmart claims the contrary: that it provided an availability rate of 98% in its stores offering the iPhone 5.

The retailer also announced that they worked with Apple on this promotion, securing a sufficient number of smartphones.

If Best Buy has calculated a difference of $ 23 on the price of an iPhone for $ 150 (the price of the latter varies between 150 and $ 200), then the brand would have lost the sale of about 2,800 units on the day the Walmart ad was announced.

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