Walmart deal for iPhone sales boosts mobile Web and commerce
Walmart Stores Inc.'s decision to sell the Apple iPhone is the best possible route to introduce the mobile Web, mobile marketing and mobile commerce to the masses.
Starting yesterday, 2,500 Walmart stores nationwide began selling the Apple iPhone 3G's 8GB model for $197 and the 16GB black or white version for $297. A two-year carrier service contract or qualified upgrade with exclusive iPhone partner AT&T Inc. is required.
With this distribution channel, the Apple iPhone is now sold by AT&T, the No. 1 wireless carrier; Best Buy Co., the No. 1 electronics products chain; Walmart, the No. 1 retailer; and at the Apple stores and online.
Talk about distribution clout.
And there's little discounting either. The Walmart iPhones are discounted only $2 from the standard $199 and $299 prices for the two models. Which shows again Apple's confidence in its brand and product.
Of course, as is Walmart's standard practice, the mass merchandiser will match a local competitor's advertised store iPhone price for the same product during the promotional period.
A Piper Jaffray analyst claimed that the Walmart deal with Apple will boost iPhone sales by 10 percent next year to 50 million worldwide. That will be no mean feat for a mobile device that made its debut only in July 2007.
Mobile marketing and commerce will next year ride piggyback on the increasing sales of smartphones. But what differentiates Apple from the rest of the pack is its recognition of the importance of the user interface in the mobile experience.
What do people love about the iPhone? No. 1 is the ability to surf the Web -- the real Web and not some chopped-up version -- and download nifty applications on its phone.
Why other manufacturers such as Nokia, Research In Motion, Samsung, LG, Motorola and Sony Ericsson can't offer Internet Explorer on their mobile devices is beyond fathoming.
If Apple can make a phone with a large screen to enable such a user-friendly Web experience, why can't the others?
A good browsing environment leads to a thriving ecosystem developing applications for the device. The Apple iPhone, at last count, has some 10,000 third-party applications created just for the phone, some free, others for purchase.
If a phone looks like a phone, it will be used like one. If a phone invites more than just talk and text, it will become a computer complement -- which is what the iPhone is becoming, although Research In Motion's BlackBerry has earned that status for business use.
Only two things prevent the Apple iPhone from becoming to mobile what IBM and Intel became to the PC.
One is price. Knowing Apple's aversion to discounting, don't expect much in the way of lower prices, unless it is for a stripped-down version.
Another major stumbling block is switching carriers.
Many mobile subscribers are loath to switch to a new carrier, either for coverage or loyalty purposes. Number portability is allowed, so that is no longer an issue.
So, consumers who do cross over and make the iPhone purchase are willing to overcome these two obstacles for the benefit of a better mobile Internet experience. What does that say for the future of mobile commerce, mobile media and mobile marketing?
Flat-panel televisions, gallons of milk, acres of toilet paper and supersized shampoo bottles: that's the company that the iPhone needs to keep in the shopping cart for Walmart Mom to recognize that a smartphone is a smart buy.