Best Buy Says iPhone X Costs $100 Extra at Full Price Because Flexibility Sometimes 'Has a Cost'

[reesecameron]

It's old baby boomers who don't know squat about electronics that keep this company alive.

I have little doubt that in 5 years they will declare bankruptcy.

 

[currocj]

That’s some capitalist logic for you.

...says the guy who just paid $1149 + tax for a phone

 

[jmgregory1]

Apple is milking their customers. Why not them ?

That's such a BS comment. Apple makes between 30% and 40% gross profit on the products they make and sell. That's a typical amount for many businesses. And as Microsoft itself is now realizing, to design, manufacture and sell higher quality devices requires higher price points. You can argue all you want that Apple should take a lower profit margin, but they're not going to do that. They're in the business to be in business, including to make money. Just like every other profit driven company.

 

[alent1234]

People still shop there?

best place to buy a phone
[doublepost=1509197133][/doublepost]

That's such a BS comment. Apple makes between 30% and 40% gross profit on the products they make and sell. That's a typical amount for many businesses. And as Microsoft itself is now realizing, to design, manufacture and sell higher quality devices requires higher price points. You can argue all you want that Apple should take a lower profit margin, but they're not going to do that. They're in the business to be in business, including to make money. Just like every other profit driven company.

best buy makes money on the carrier commission. that's why the $100 premium if you pay upfront

 

[Fattytail]

This is very interesting, I would like to see the idiots that actually purchased from them!!

Oh don’t you worry, there are plenty. That’s why Best Buy does this. It’s not really that out of the ordinary for a company to raise prices in the face of high demand. Just a little weird for that to be on something so highly publicized as an iPhone.

 

[KingslayerG5]

I was #11 for pre-orders for the iPhone 4. Now #17 for iPhone X. Keep humming Stevie Nicks' "Edge of Seventeen".

I actually feel bad for Best Buy. They may end up being the next Circuit City. I barely see anyone inside those stores compared to the late-90's and 00's. Nobody really buys electronics or physical media stuff anymore. Black Fridays are dying.

Best Buy is ready to go extinct like Circuit City. Only thing keeping Best Buy afloat is being a third-party for carriers. Walmart seems to rule all because you can also shop for food and clothes.

 

[manhattanboy]

Best Buy Says iPhone X Costs $100 Extra at Full Price Because

Because: Courage

 

[bkaus]

Target was selling iPads for more than Apple.com a while back...

 

[coolbreeze]

The irony here is Best Buy often sells Apple hardware for much less than Apple themselves.

The $250 off 2017 iPad Pro's w/free pencil (for the 12.9") earlier this week is an example.

I've always bought open box Apple gear from Best Buy at deep discounts, especially after negotiating lower than the sticker. Now they have a PR mess on their hands for trying to make a buck on the X. Ok.

 

[rich1812]

Best Buy began accepting iPhone X pre-orders alongside Apple at 12:01 a.m. Pacific Time today, but several customers quickly realized that the electronics retailer is charging an extra $100 for the smartphone at full price.

Apple charges $999 or $1,149 for the iPhone X with 64GB or 256GB of storage in the United States. Best Buy charges $1,099 or $1,249 online and in stores for the equivalent models on a Verizon, AT&T, or Sprint account.

In a statement issued to MacRumors, Best Buy said its prices reflect a customer's ability to "get a phone the way they want."

"Our prices reflect the fact that no matter a customer's desired plan or carrier, or whether a customer is on a business or personal plan, they are able to get a phone the way they want at Best Buy. Our customers have told us they want this flexibility and sometimes that has a cost," a Best Buy spokesperson told MacRumors.

A customer ordering an iPhone X through Apple also has the flexibility of choosing their desired carrier and plan, so Best Buy's statement doesn't really justify why the device costs $100 more at its stores.

Best Buy representatives in stores, on the phone, and on Twitter have provided mixed answers about its price matching policy for the iPhone X. A company spokesperson simply linked us to Best Buy's price matching policy in general.

Best Buy also charges $100 more for the iPhone 8 and iPhone 8 Plus at full retail price in the United States.

Article Link: Best Buy Says iPhone X Costs $100 Extra at Full Price Because Flexibility Sometimes 'Has a Cost'

 

[djlythium]

That’s called ‘markup’, happens all the time with cars, and it’s just good business.

 

[rich1812]

Retailers will made up any bogus excuses the jack the price. so BS. How come the customers can't make up bogus claims to lower the price? Can I charge BB a fee for walking to their store? A fee for taking my energy and time to talking to their sellman? :-}

 

[cmaier]

Returning items:

Amazon: Print shipping label. Deduct cost of return shipping from your refund. Pack and tape box. If no mailroom nearby, drive to UPS or post office. Once mailed, hope that it arrives safely.

Best Buy: Drive 10 minutes to store (or go during my weekly grocery runs since it’s right next to my grocery store). Return complete. What’s more, if I buy something on BestBuy.com (which I frequently do as I get free 2-day shipping via Elite status), I can return it at any store and not have to deal with return shipping.

To each their own, I guess.

I’ve never had to pay to return ship to amazon. And I am always credited with the refund as soon as ups reports to amazon that they have the package - same day I drop it in the mailroom.

Their policy: Amazon will process your return and issue a full refund with no deduction for return shipping after receiving your return of the eligible product(s). If your return is not a result of an Amazon error, we will not refund the original shipping fees

Since I never pay shipping fees, the “we will not refund” part is irrelevant to me.

 

[scir91]

Best Buy is notorious for over-selling on pre-orders. They've done it with numerous Apple products in recent years... you get excited that you'll get it release day then you get an email two days before saying they're sorry but there's been a delay with their deliveries and it'll be an extra week or two... and you wait... and wait...

just curious, although off topic as it is a game console, did best buy also markup the nes and snes mini consoles (the ones that came out last year and this september 29)? they were and remain hot items. i didn't follow but am wondering if anyone on this board is aware of that.

 

[pika2000]

The irony here is Best Buy often sells Apple hardware for much less than Apple themselves.

The $250 off 2017 iPad Pro's w/free pencil (for the 12.9") earlier this week is an example.

I've always bought open box Apple gear from Best Buy at deep discounts, especially after negotiating lower than the sticker. Now they have a PR mess on their hands for trying to make a buck on the X. Ok.

Retailers don't just sell stuff for less automagically (unless they are really trying to clear inventory).
What usually happens is that, the sales team at Apple or Apple's distributor had some budget for marketing. Often times those teams can use that budget to support retailers in putting discounts/promos on their products. And yes, this can result retailers selling Apple stuff for less than Apple store. Most of these promo/discounts are actually within the control of Apple.
[doublepost=1509202316][/doublepost]

Antitrust. Apple / Samsung can't just order a store which prices they should charge. On the other hand, why would you care if Best Buy charges $100 more than Apple? Just buy at Apple if you want a phone without a contract, and before you do that compare the price with what a phone company will charge you.

This. Not sure why people are complaining. Bestbuy are within their rights to charge whatever price they want for their inventory. The S in MSRP is "Suggested," doesn't mean retailers must charge MSRP. There are plenty of other places that sell iPhones.

 

[TallManNY]

I almost bought my phone through Verizon financing because I didn't see the full price option on the Apple Store App at first. Then I realized that Verizon was going to charge me $40 a month for service. While if I pay full price upfront, then Verizon just charges me $15 per month for the line. That is a pretty big savings.

 

[PieMac]

Best Buy has price matched 2 different iPhones in the past for me and my partner with Apple.com (the closest Apple store is unfortunately 2 hours away). We purchased the iPhone 6S Plus in store and they matched the price on the spot...no issues at all. I ordered 2 of the jet black iPhone 7 Plus last year and they price matched both over the phone with no issues. I don’t enjoy the extra step of price matching, but I do enjoy BB’s 0% financing options and in the case of the iPhone X, it’s 18 months no interest financing.

I have orders in for the iPhone X from both Apple and BB-both for delivery next Friday on release day. I am hoping BB will price match again with no issues, if not I will cancel my order with them and go with Apple...options are always a good thing!

 

[xgman]

Anyway this is BS because I tried to order an X on Best Buy yesterday and was forced to provide carrier account details, so I could not just buy the phone without having a contract in effect. I call total BS!

 

[marty11]

Wow. If I ever had the slightest amount of guilt testing something in store at best buy then buying it from BH or Adorama tax free, it's all been absolved.

Now I'm going to straight up tell the salesman I am just using the store to decide.

 

[bdragule]

Give Best Buy a break, they're not used to selling new products. Most things on the shelf are repackaged customer returns.

 

[AZhappyjack]

Retailers will made up any bogus excuses the jack the price. so BS. How come the customers can't make up bogus claims to lower the price? Can I charge BB a fee for walking to their store? A fee for taking my energy and time to talking to their sellman? :-}

You can try. Won’t get any ‘buyers’, though. It’s what ‘free enterprise’ is all about. Sell what you want at any price you want. Let the market sort out the winners and losers.

Re: Best Buy ... if the price is too high for your liking, shop around. No one is forcing you to buy anything from anyone.

 

[chriscrowlee]

just curious, although off topic as it is a game console, did best buy also markup the nes and snes mini consoles (the ones that came out last year and this september 29)? they were and remain hot items. i didn't follow but am wondering if anyone on this board is aware of that.

Don't think so... they're just doing this for unactivated phones as a way to dissuade people from coming in and buying up their inventory vs people activating in store on lucrative plans where BBY makes a commission from the carrier.
[doublepost=1509207451][/doublepost]

Antitrust. Apple / Samsung can't just order a store which prices they should charge. On the other hand, why would you care if Best Buy charges $100 more than Apple? Just buy at Apple if you want a phone without a contract, and before you do that compare the price with what a phone company will charge you.

Are you insane? A manufacturer absolutely can sign into a vendor agreement with a retailer to only charge MSRP\disallow discounting of the items. What planet are you living on? Let me guess, you think a company can't dictate how a franchise runs their business either. LOL. How do you think franchises like McDonalds and Burger King are so consistent? Because of contracts that stipulate that they have to follow everything the franchise grantor puts into the contract or they lose their franchise. Gosh I wish people knew what they were talking about on here.

 

[lederermc]

Does anyone still use Best Buy? I thought they went under last year.

 

[AZhappyjack]

Does anyone still use Best Buy? I thought they went under last year.

Way to pile on.

I’ve been a customer for years. I shop around, but still do a fair amount of business with BestBuy. Their prices on Macs are pretty much awesome.

I love it when a lightning rod issue pops up and the masses do a collective meltdown.

 

[XBeatzX]

I don't know if this has been mentioned. But this photo was taken at a Best Buy in Houston during Hurricane Harvey. Will never step foot in another Best Buy.