December 28, 2008 3:04 PM PST

Brief encounter with the Wal-Mart iPhone display

by Dan Ackerman
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Owing to, as Tom Lehrer would say, nepotism and intrigue, I found myself in the small town of Brenham, Texas, this Sunday on the very day that Apple's iPhone was to go on sale at the Wal-Mart megachain (an outfit that I, as a native New Yorker, have had very little experience with).

Popping in to check out the action and snag some photos, I found a single iPhone display--it would be generous to call it a kiosk--with an activated iPhone and a handful of brochures. The price tags on display gave both the new customer/upgrade price, as well as the full retail price. A small paper sign taped to the wall announced that iPhone sales would commence at 9 a.m., and that customers should line up for access to limited stock.

I asked a sales clerk about first-day sales, and she said as far as she knew they hadn't sold a single unit so far, "but maybe if they had started selling it before Christmas..." There was, however, a steady stream of gawkers checking out the display unit in the 10 or so minutes I spent in the electronics department.

Herewith some photos of the in-store Wal-Mart display:

New York native Dan Ackerman, a former radio DJ turned journalist, has written about technology and music for publications including Spin, Blender, The Hollywood Reporter, and USA Today. He hosts the weekly Digital City podcast and the New York edition of Editors' Office Hours. Dan's new album, Tales Out of Night School, is available now. E-mail Dan.
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by jonwgee December 28, 2008 4:08 PM PST
I'm surprised Walmart allowed you to take photos inside the store!
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by Dan_Ackerman December 28, 2008 4:14 PM PST
I'm sneaky like that.
by worthe December 28, 2008 7:36 PM PST
Hey, I'm from Brenham...Was that the only walmart with the kiosk or were you just passing through...LOL!
Reply to this comment
by PhoenixFiresky December 29, 2008 12:17 AM PST
Huh. Kinda sad, really. Somehow, it sucks the coolness factor right out of the iPhone...
Reply to this comment
by DarkHawke December 29, 2008 11:38 AM PST
One question: How?
by tech_junkie14 December 29, 2008 1:10 AM PST
I have mixed feelings about Apple selling iPhone 3Gs in Wal-Mart. It seems very unnatural for Apple to take this route to reach more users. But, a good way to grow the iPhone community nonetheless.
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by hoshie December 29, 2008 12:21 PM PST
I agree with this. With Wal-Mart and its large base of customers along with the iPhone being a household name, I think this is a win for all sides. However I feel there could be a downside to this and it's due to the 3G service. For example, in North Carolina (were I live) 3G is only available in the Raleigh-Durham, Charlotte, Jacksonville, and Fayetteville areas, leaving lots of non-3G area. Why would you want to pay for an iPhone if the 3G service isn't in your area?
by bob61744 December 30, 2008 4:05 PM PST
No iPhone available at local Wal-Mart, zip 61571, suburb near Peoria, Illinois. BUT, Verizon had end-cap aisle display for their LG 3G Dare phone. .

May be because NO AT&T 3G coverage near here, but Verizon does! If you look at AT&T 3G coverage, it is lacking in the rural Midwest. None in the state of Iowa. None in this Peoria area, hdquarters of a Fortune 50(yes, 50 not 500) company.
by pjamela3000 December 30, 2008 9:50 PM PST
FYI
Placement of the iPhone in stores was not only based on 3G network availability but on past AT&T sales history in each specific store.
by JPSaltzman December 29, 2008 7:26 AM PST
There goes the neighborhood. ;-(
Reply to this comment
by Seaspray0 December 29, 2008 7:41 AM PST
For the iphone or for walmart?
by Seaspray0 December 29, 2008 7:46 AM PST
The latest innovation from apple... a walmart kiosk?
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by thelemurking December 29, 2008 10:33 AM PST
Rumor has it that's next on Steve Jobs "things to patent" list... and many will believe that despite seeing kiosks before, it was Steve Jobs who invented them.
by Scott Gardener December 29, 2008 8:01 AM PST
Big whoop. It's the same iPhone, no upgrades, downgrades, minis, nanos, megas, 4 Gigs, 32 Gigs, or anything special. Two bucks off. That's it. We rumor-milled to death for fracking this?
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by dennisl59 December 29, 2008 8:14 AM PST
Like the $900 Dell XPS-420 systems, that Walmart can't sell(2 still on the shelf here in Round Rock), the iPhone's demographic(a lot of disposable income & gadget happy) does not shop at Walmart. Pricing is $200 to $400. Not to mention the 2 year AT&T subscription.

That will buy a lot of groceries.

Prediction: No sales bump launching these at Walmart.

But I could be wrong.

Thank You.
Reply to this comment
by geofbrewer December 29, 2008 5:45 PM PST
Maybe you should have asked an associate how much product lost space to the iPhone display? Or how much of their wages and benefits will be coverd by iPhone sales?
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by macmanca December 29, 2008 11:01 PM PST
Neato pics inside W-Mart Dan, never been in one myself.

I agree with the Mystrey Poster that said $200-$400 buys a lot of groceries at W-Mart.

Used my iPhone since it came out, and now im using it with Tmobile for a cheap $35/mo with no data plan (i use wi-fi only)

But its a good point, how many W-Mart customers will fork over the cash for the iPhone and qualify with AT&Ts crazy credit approval? I bet not too many mini-driving families with 2.5 kids and a tract house with a satellite dish will go for this.

Living a block from Apple, i think they are drinking too much of their own Kool-Aid ;-)
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by utlxa1877 December 30, 2008 12:55 AM PST
I've from Brenham as well, my first question is WHY ARE YOU IN BRENHAM!!! And knowing the people, and the fact that the AT&T store is right next to wal-mart, most people would probably go there rather than wal-mart to buy their iPhones. Seeing how I live and go to school in Austin, I am not there, but my family still lives there, I will ask them to take a look at it for themselves.

And I will be forwarding this article to everyone I know!
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by Dan_Ackerman December 30, 2008 10:05 AM PST
Ha! I was visiting the in-laws in the semi-nearby town of Roundtop. And yes, I noticed the AT&T store right next door (by the drive through Starbucks...which totally blows my NYC mind...)
by utlxa1877 December 30, 2008 11:20 AM PST
Brenham aims for simplicity, couldn't you tell!
by danieldurazo December 30, 2008 4:12 PM PST
The addition of the iPhone to Walmart's fantastic merchandise mix has spawned a whole new category of iPhone apps targeting the Walmart shopper.

Here's a sample from my Top Ten List of Walmart Apps at http://danieldurazo.com/2008/12/29/walmarts-top-ten-iphone-apps/

2. iSmile: Are your teeth missing or misaligned? No need to worry. Choose from a selection of ?virtual? smiles and just hold your iPhone in front of your mouth to show off your gleaming new smile!
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by pjamela3000 December 30, 2008 9:47 PM PST
I'm hearing a lot of noise about the iPhone being "too cool" to sell in Walmart and doubts about why Walmart would bother selling such a high ticket item. We seem to be forgetting that Walmart is one of the only retailers out there right now that are still making their numbers despite the economy crisis. Walmart offers more things for more people (rich, poor, techno geek or whatever) in a conveinent one stop box. This not only saves on feul but most importantly, my time. I am not poor and I do not have a family of 5 to feed, but I still take advantage of Walmart's "save money, live better" philosophy. I think it is cool that they are trying new things. Just ask Apple what they did for the iPod...........
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by February 9, 2009 6:47 AM PST
Well, all this talk about Wal-Mart reminded me of the documentary directed by Robert Greenwald, "Wal-Mart-The High Cost of Low Price". This documentary is worth seeing if you shop at Wal-Mart. If the Wal-Mart family has changed their business practices, I apologize. If not, I would think twice about even shopping there.
Just my 2Cents.
ps. I also think that Apple lowers it's image of high end, quality products by selling them at discount stores but, if that what Steve Jobs wants to do, it's his company to do with what he pleases. Apple just seems to lose it's "cool" when you see it's products being sold outside the Apple store.
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