These Retailers are Fighting Over the iPhone
Best Buy (NYSE:BBY) and several other retailers have accused Wal-Mart (NYSE:WMT) of using misleading advertising during the holiday shopping season for discount on products, including Apple’s (NASDAQ:AAPL) iPhone 5.
The retailers, including Toys “R” Us and a number of regional supermarket chains, were incensed by what they call an “aggressive” marketing campaign from Wal-Mart that advertised inaccurate prices and resulted in big losses for them, according to The Wall Street Journal.
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Best Buy was particularly angered by a sale in Walmart stores where the 16 GB iPhone 5 was being sold for $150, or nearly $50 off its regular price. The electronics retailer said it lost about $65,000 in profits on one single day that Wal-Mart advertised the promotion through Facebook. According to Best Buy, it was forced to match Wal-Mart’s advertised price, even though the latter did not have enough inventory to meet demand.
In addition, a Wal-Mart ad claimed a Dell (NASDAQ:DELL) laptop cost an additional $251 at Best Buy. However, the electronics retailer said the two laptops in the comparison were different models and that the one it offered had a longer battery life.
The retailers have filed official complaints with attorney generals in several states.
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