Walmart Slashes iPhone 5C Price to $45

Interested in picking up Apple's new iPhone 5C? You might want to consider dropping by Walmart — the discount department store has lowered the price of Apple's most colorful smartphone to just $45 with a two-year contract.

Walmart was already selling the iPhone 5C for $79 — $20 below Apple's MSRP — and has now cut the price by another $35. Why the price drop? We're pretty sure it's related to Best Buy's current promotion of the iPhone 5C for $50 (thanks to a $50 Best Buy gift card promotion).

See also: 8 Great Hidden Features in iOS 7

While Best Buy's discount will last through the weekend, Walmart tells us that "customers can expect this low price throughout the holiday season." That's great news for customers who are looking at adding or upgrading an iPhone to their wireless plans in the next few months.

This isn't the first time Walmart has undercut Apple's prices (with a two-year contract) on the iPhone. In June, the company made unprecedented cuts to the prices of the iPhone 5 and iPhone 4S.

In the past, Apple has severely limited the degree to which retailers can discount its products. The fact that Walmart has made this kind of price cut, just two weeks after the phone's release, seems to indicate that Apple's position on discounting — at least for phones — has changed. A lower price point is also likely to drive more cost-conscious customers to the iPhone — and in turn, to Walmart stores.

We don't get the impression that Walmart is dropping the price because of lack of demand for the iPhone 5C, especially after Apple released that it sold 9 million iPhone 5S and 5C devices in its first weekend. Rather, it's likely about pursuing wireless contract sales.

The truth is, retailers like Walmart and Best Buy don't make as much money from the subsidized devices as they do from new two-year agreements. That's one reason online retailers — most notably Amazon — are often willing to sell subsidized devices at such a discount. It's not about selling phones; it's about signing users to new contracts.

Walmart is continuing to sell the iPhone 5S for $189.

What do you think of Walmart's new iPhone 5C pricing strategy? Does this change your plans to purchase a new phone? Let us know in the comments.

1. 

   The iPhone, but Friendlier

   The iPhone 5C is very similar in capabilities to the iPhone 5, but the physical design has significant differences. The "unapologetically plastic" backside, which comes in multiple colors, gives the phone a more playful feel.

   For most U.S. carriers, the iPhone 5C starts at $99 with a two-year contract.

2. 

   Plastic Back

   The plastic back gives the phone less of an "exclusive" feel, although it makes the phone slightly thicker overall.

3. 

   Case Fail

   The case for the iPhone 5S adds a couple of millimeters to the thickness. It has a "matte" finish that contrasts with the iPhone's glossy back, but that also makes it difficult to get out of some pockets.

4. 

   iOS 7

   The iPhone 5C of course comes loaded with Apple's latest mobile software, iOS 7. Here's the lock screen.

5. 

   Apps

   iOS 7 gives Apple's apps a colorful new look, which nicely matches the iPhone 5C design.

6. 

   Curved Edge

   Instead of edges or bevels, the iPhone 5C has rounded corners.

7. 

   Plastic Buttons

   The volume buttons are plastic oblongs instead of the metal circles you'll find on the iPhone 5S and its predecessors.

8. 

   Connectors

   The connectors are on the bottom of the phone, amounting to the Apple Lightning connector and the headphone jack.

9. 

   SIM Card Slot

   Like the iPhone 5, the SIM card slot is on the side.

10. 

    Packaging

    The iPhone 5C packaging is plastic, no doubt another way Apple managed to cut costs on the device.

Image: Mashable