Best Buy Selling iPhone X on Installment Plan Only After Criticism Over $100 Premium

[MacRumors]

Best Buy is no longer selling iPhone X and iPhone 8/8 Plus models outright following criticism of the $100 premium it was charging over Apple's retail prices, reports Bloomberg.

When pre-orders kicked off for the iPhone X on Friday, Best Buy was selling the full-priced 64GB model for $1,099 and the 256GB model for $1,249, $100 more than Apple asks for the two devices. Similar price increases were applied to iPhone 8 and 8 Plus orders.

Best Buy only offers the iPhone X via carrier payment plan now​

Best Buy confusingly said it was charging a premium because flexibility sometimes has a cost, and that by offering full-price iPhones, customers can "get a phone the way they want." The statement made little sense as the same full-price commitment-free iPhones are available from Apple and other retailers.

Rather than dropping its prices, Best Buy has decided it will no longer offer iPhone X, iPhone 8, and iPhone 8 Plus models for outright purchase, instead only selling them via carrier installment plans from Verizon, AT&T, and Sprint. The payment plans feature no extra charge, with the monthly device payments going directly to carriers.

"Although there was clearly demand for the un-activated iPhone X, selling it that way cost more money, causing some confusion with our customers and noise in the media," Best Buy spokeswoman Danielle Schumann said. "That's why we decided a few days ago to only sell the phone the traditional way, through installment billing plans."

When a customer purchases an iPhone via a carrier installment plan, Best Buy receives a payment from the carrier in question, but that payment is not received for iPhones at full price, which seems to be why Best Buy was charging an additional $100. No other retailer charges an additional $100 for the iPhone, though.

While Best Buy has stopped offering the latest iPhone models as an outright purchase sans installments, it is continuing to sell older models and charging a $50 premium on those devices when purchased without a carrier payment plan. The iPhone 7, for example, is priced at $599, $50 more than Apple charges.

Article Link: Best Buy Selling iPhone X on Installment Plan Only After Criticism Over $100 Premium

 

[840quadra]

More proof that this company has lost it’s way.

Ashamed to drive past their headquarters 2 times a day.

 

[Brookzy]

That's hilarious.

Imagine applying the same response to an Apple issue...

"In response to criticism at six-week wait times for the iPhone X, Apple has decided to stop selling it completely."

 

[826317]

If this isn't the definition of American greediness, I don't know what is.

 

[eswank]

So what happens to those that did buy it at launch with the $100 premium? Is there a automatic refund?

 

[iamMacPerson]

They have been doing this for years. When my dad bought an iPhone 4 on launch day from Best Buy he was surprised to find an extra $100 tacked on the bill vs what AT&T and Apple would’ve wanted. Don’t understand why it’s just now becoming a problem. That’s why I don’t buy phones from Best Buy anymore.

They were doing it on the iPhone 7 and 7 Plus too when I was looking at them a few weeks ago (shortly after launch of 8 and 8 Plus). They dropped the prices by $100, which brought them in-line with original MSRP, and didn’t reflect the new MSRP of $100 less all carriers and Apple were charging. They also don’t price match on phones.

 

[oneMadRssn]

This is going to be a footnote in a business school case studies book. Which chapter through? Retail pricing, or public relations?

 

[justiny]

That’s real big of them.

 

[mi7chy]

Simply all you had to do was price match and they'll honor it. Now you have one fewer local supplier. Classic example of being worse off engaging the mouth instead of the brain.

 

[Rayban]

I can buy an "un-activated" phone at full price from Apple with no markup. Are they implying that Apple charges them extra to sell at full price? Makes no sense.

 

[california_kid]

They finally figured out that they could simply fire the person who came up with this idea and it would add more to their bottom line that the few people who paid the $100 premium.

 

[akfgpuppet]

Funny, they didn't mark up the Note 8 when it came out, and it is still available to purchase a full price.

 

[sw1tcher]

So what happens to those that did buy it at launch with the $100 premium? Is there a automatic refund?

If someone paid that inflated price, then that person was obvious okay with it, so why should s/he get the $100 back?

If you don't like the price, don't pay it. Or just return the iPhone for a full refund... unless you can get Best Buy to do a price match/adjustment.

 

[Rayban]

Simply all you had to do was price match and they'll honor it. Now you have one fewer local supplier. Classic example of being worse off engaging the mouth instead of the brain.

Simply all best buy had to do was knock it down $100 and save their paying customers from begging for their $100 back.

 

[Cyroceon]

As if they needed any more reason to join Sears on the Soon to be Bankrupt Companies List.

 

[Sketchr]

More proof that this company has lost it’s way.

Ashamed to drive past their headquarters 2 times a day.

I'm from the twin cities as well. I've loathed Best Buy and their practices for a long time now.

 

[840quadra]

Simply all you had to do was price match and they'll honor it. Now you have one fewer local supplier. Classic example of being worse off engaging the mouth instead of the brain.

Actaully no, that didn’t solve the problem. They would price match the base price of the phone, and still add $100 to the price.

We attempted to purchase a few phones for a small business 2 years ago, and ended up going direct to Apple in that case because of their policy. Actually turned out good, as that client of mine now has a business account with Apple, that we setup that same week.

As if they needed any more reason to join Sears on the Soon to be Bankrupt Companies List.

Actually the stock and the company is doing better than it has in years.

Mishaps like this aren’t helping their reputation tough.

 

[MagMan1979]

That PR statement wreaks with so much BS I think I can smell it from here!!!

Un-*****-believable response from them, "selling it that way cost more money", BS!!!

 

[agsystems]

So what happens to those that did buy it at launch with the $100 premium? Is there a automatic refund?

Unlikely - this folks will give you a store credit to keep you hostage there

 

[az431]

Simply all you had to do was price match and they'll honor it. Now you have one fewer local supplier. Classic example of being worse off engaging the mouth instead of the brain.

Best Buy does not price match phones. It's an exception to their price match policy.

 

[swissglide]

LOL, BestBuy does a shameless money grab operation, gets called out on it, throws a temper tantrum, drops the ball, and goes home. Waa, waa.

 

[DEMinSoCAL]

They have been doing this for years. When my dad bought an iPhone 4 on launch day from Best Buy he was surprised to find an extra $100 tacked on the bill vs what AT&T and Apple would’ve wanted. Don’t understand why it’s just now becoming a problem. That’s why I don’t buy phones from Best Buy anymore.

They were doing it on the iPhone 7 and 7 Plus too when I was looking at them a few weeks ago (shortly after launch of 8 and 8 Plus). They dropped the prices by $100, which brought them in-line with original MSRP, and didn’t reflect the new MSRP of $100 less all carriers and Apple were charging. They also don’t price match on phones.

Because the new trend is to make mountains out of mole hills it seems. Everyone here that is whining about it and how bad BB is, isn't even buying one from them, but feel they have to make a big deal about it.

There are SO MANY other scenarios in retail where the business is selling something for more than retail and people can't hand over their credit card fast enough. Ever buy wine in a fine restaurant? Twice the retail price, but to people swear and bad-mouth the restaurant and promise never to go back?

People here make no sense.

 

[hasanfari]

Simply all you had to do was price match and they'll honor it. Now you have one fewer local supplier. Classic example of being worse off engaging the mouth instead of the brain.

EXACTLY but hey we (I) were able to get an unlocked phone before everyone else. People just don't think, emotions get the best of them.

 

[Nick A]

How about just charging the actual retail price of the phone?? Sounds like they cut off their nose to spite their face.

Regardless I never recommend buying a phone at Best Buy.

I pre-ordered the LG G4 a few years back and paid full price because there was a promo for a $100 gift card with purchase.

I went to pick it up on release day and the employees were confused and said they didn’t have it. I called corporate and they said they have no idea on when they will have it but I’ll get an email when it’s available. (Every local AT&T/Verizon store had available stock)

Three weeks later I get an email from them to come pick up the phone. When I got there they claimed the $100 gift card was only when activating a new line. I showed them their promo and said it literally says “with purchase of an LG G4” and no where does it say with a new line. They basically said sorry nothing we can do. Had to call corporate and after some going back and forth they mailed me the GC about a month later.

Nonsense.

 

[Riddlin]

More proof that this company has lost it’s way.

Ashamed to drive past their headquarters 2 times a day.

LOL Seriously. I drive by daily and don't even think about this. Good lord. They are free to do what they want. Are you ashamed to drive by car dealerships that charge more for the car your driving. Or the gas station that charges $.10 more a gallon then the guy down the street. This is the most ridiculous comment I have ever read.