updated - August 4, 2020 Tuesday EDT
Wal-Mart is cutting prices on the iPhone and iPad.
According to CNN, the retail chain is reducing the price on the 16 gigabyte iPhone 5, the 10 inch iPad, and iPad 2.
The company recently introduced a program which gives credit to customers who return their iPhones for the purchase of a new one CNBC reported. The move is common when companies get rid of older models to make room for a new product
NBD Group vice president of connected intelligence, Eddie Hold, told CNBC the move is quite popular.
"There's plenty of competition in the field," he said. "Trade-in programs for smartphones have probably become the biggest, hottest area of smartphone transactions this year."
Apple is expected to announce the latest model of the iPhone and iPad Sept. 10.
The price of the 10-inch iPad has been cut $50 from $399 to $349. The iPad with retina display was slashed from $499 to $449. There's no discount on the iPad mini.
Wal-Mart has also decreased the price of the iPhone 4s from $89 to $39 CNBC reported. The majority of iPhone 4s models go for $100 with a new contract.
Top competitor, Samsung, has reduced the price of the Galaxy S4 to $138 with a $10 price cut on Verizon's model, and a $30 discount on AT&T's device. 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.
Frost and Sullivan senior industry analyst told CNBC Apple's new program, does not come as a shock.
"If you look at Apple's overall business model, it's not just about the devices but the overall universe," he said. "Offering a competitive trade-in program helps ensure those customers stick around, particularly if they receive a gift card instead of cash, as is the case with Apple's existing online program."
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