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Apple Drops iPhone 4S Price in Preparation for iPhone 5 Release

Retailers and carriers in the United States (U.S.) reportedly start cutting off prices of iPhone 4S and iPhone 4 Thursday, August 9th. While the Cupertino-based tech giant didn’t say the reason the prices of its popular smartphone were dropped, everybody knows it’s paving the way for the release of iPhone 5.

A story from The Wall Street Journal said that Apple allegedly authorized its retail employees to award discounts up to $49.01 for buyers who may cite lower prices from other retailers or outlets. This is the first time Apple uses this price-matching scheme and it has never advertised that the prices of its 2011 model iPhones will be dropped.

Previously, Apple didn’t really drop prices of its device until a new one is released but it seems like it is on track to “getting the most” out of its soon to be phased out smartphones. Analysts believe that once iPhone 5 is released, Apple as well as retailers and carriers offering iPhone 4 and 4S will have a hard time selling them.

For now, there are quite a few outlets in the U.S. that offer this discount and three of those are Best Buy Co., Target Corp., and Sprint Nextel Corp. European customers, however, are not as lucky considering only Amazon Germany dropped iPhone 4S 16GB price to €529 earlier this week. For people who know Apple and its way to squeeze more revenue from its older models are confident price drop will be expected as iPhone 5 nears its release.

Apple had disappointing sales of the iPhone last month and many believe it is because people who are planning on getting a unit of the most popular smartphone are holding out for the new version which is expected to land this fall.

“Our weekly iPhone sales continue to be impacted by rumors and speculation regarding new products,” said Peter Oppenheimer, Apple’s Chief Financial Officer, confirming reports that Apple failed to meet expectations for the second time in its 39 quarters of sales report.

There is no official information provided by Apple as to the pricing and availability of the iPhone 5 but it is expected to capture a bigger share in the smartphone market.

Apple is currently entangled with Samsung over its patent claims and while their legal battle is becoming nastier and fiercer each month, it is actually making iPhone 5 more popular while depreciating the value of Samsung Galaxy devices. Apple claims Samsung plans on copying its entire product line up.

Source: WSJ

Image Credit: MacRumors