Best Buy Lost $65,000 on the iPhone 5, Says Walmart to Blame
Meanwhile in iPhone world…Best Buy says they lost $65,000 in one day alone on the iPhone 5. They say Walmart is to blame.
So the full story is that on December 14th Walmart slashed the price of the iPhone 5 from $199 on a 2-year contract to $127. But according to Best Buy, who had already discounted the iPhone 5 to $150, Walmart couldn’t fill demand, causing its customers to flood into Best Buy stores forcing the big box retailer to price match Wally World’s offer. The result, Best Buy says, was a single day loss that peaked at $65,000.
According to Best Buy, Walmart performed a sort of bait and switch, though Walmart detests this saying they worked closely with Apple on this deal, offered no rain checks, and at the time had 98% availability at stores that were carrying the Apple device. What’s odd, is that usually companies like Best Buy won’t price match unless the product is in stock, so it seems like it was more a question of due diligence and that Best Buy has only themselves to blame.
Honestly, the debacle, if you can call it that, is a moot issue since Best Buy has already been on a bit of a losing streak so to speak, so the news doesn’t come as much as a shock. And what’s $65,000 to a company who sells billions ($16 billion in 2011) in products a year.