Ho Ho Ho! Wal-Mart Slashes Prices on iPhones and iPads

David Paul Morris | Bloomberg | Getty Images

Wal-Mart Stores said on Friday that it began selling Apple's flagship iPhone 5 smartphone at a big discount inthousands of its stores.

Wal-Mart said it is selling the 16 GB Apple iPhone 5 for$127, versus an original price of $189.97. The price is validwith a two-year contract from wireless carriers Verizon,Sprint and AT&T, the retailer added.

Wal-Mart said it is also selling the 16 GB iPhone 4S and the16 GB iPad 3 with Retina display and WiFi atdiscounts.

The offers will be available for 30 days in about 3,000 ofWal-Mart's stores, which were not identified. They are notavailable online, according to the retailer.

Apple has focused on high-priced, premium gadgets for manyyears and has strictly enforced its prices with retailers andother distributors. However, a Wal-Mart spokeswoman said onFriday that the discounts were arranged with Apple.

"We worked together with them on this," the spokeswoman,Sarah Spencer, said. "They are a great partner."

Wal-Mart is pricing the iPad starting at $399, down from$499. Beginning Dec. 17 the retailer said it will throw in a $30iTunes card.

Wal-Mart is selling the 16 GB iPhone 4S for $47, versus anoriginal price of $89.97, it said.

There was no immediate response from Apple to a request forcomment.