I could see it happening – e.g., Apple unveils a new high-end iPhone as well as a new low-end model at the same time, attempting to grab more market share before the next wave of competitors can get established.
Wal-Mart would probably serve as an additional source for the $199 iPhone, rather than ushering in a new discount strategy, UBS analyst Maynard Um said yesterday. Still, a $149 stripped-down model may make sense, he said.
"A $99 iPhone would be atypical of Apple's premium brand strategy," the analyst reported. "More likely is a scenario in which select Wal-Mart, and possibly Sam's Clubs, are simply added as further iPhone distribution points."