Wal-Mart slashes iPhone 5 and iPad prices

It looks like a regular iPhone 5, but it's half-off at Wal-Mart.

NEW YORK (CNNMoney)

The retail giant said it has slashed the price of the 16 gigabyte iPhone 5 to $98. Wal-Mart (WMT, Fortune 500) had previously offered it for $129 -- still far cheaper than the usual $200 price tag of the iPhone 5. To get the discount, customers will need to sign a new two-year contract with AT&T (T, Fortune 500), Verizon (VZ, Fortune 500) or Sprint (S, Fortune 500).

Wal-Mart also cut $50 off the price of its 10-inch iPads. The latest iPad with Retina Display now costs $449 and the price of the iPad 2 is $349. The $330 iPad mini did not get a discount.

The price cuts come as Apple (AAPL, Fortune 500) is widely expected to be unveiling a new iPhone and possibly a new iPad on Sept. 10. Retailers often slash prices to clear out inventory ahead of a new product launch.

Related story: Selling your old iPhone? Do it now.

RadioShack (RSH) is currently offering a $50 discount on all iPhones, including the iPhone 4S and iPhone 4, and customers don't need to sign a new contract to get the price-cut. T-Mobile (TMUS) is offering the iPhone 5 for $149 with a new two-year payment plan.

And like Wal-Mart, Best Buy (BBY, Fortune 500) is offering $100 off the iPhone 5, but customers need to trade in their old iPhone to get the deal -- not such a bargain when you consider older iPhones are fetching as much as $300 in some channels.

But Wal-Mart's deal undercuts all of them.

The retailer also cut the price of the iPhone 4S to $39, down from $89. Most iPhone 4S smartphones sell for $100 with a new contract.

At the same time, Wal-Mart slashed the price of the Samsung Galaxy S4 to $138, a $10 price cut on the Verizon version and a $30 discount on the AT&T edition.

First Published: September 1, 2013: 12:40 PM ET

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