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Wal-Mart Selling Apple's iPhone 5 at Big Discount

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A customer buys new Apple Inc. iPhone 5 devices at a store in San Francisco, California, U.S.
David Paul Morris | Bloomberg | Getty Images

Wal-Mart Stores said on Friday that it began selling Apple 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 with Retina display and WiFi at discounts.

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.

Apple did not respond to a request for comment.

Wal-Mart's cooperation with Apple is a contrast to itsrelationship with Amazon.com, the world's largestInternet retailer.

In September, Wal-Mart said it would stop selling Amazon'sKindle eReaders and tablets, placing a bet that consumers wouldbe more interested in Apple's gadgets. This spring, Target stopped selling Kindle devices.