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

[mabhatter]

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.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

I think Best Buy is selling the “Sim-free” variant even if you buy on a plan. They don’t know what company you’re going with so they had the most flexible model. That’s worth the $100 extra. I just looked up my iPhone 8 Plus from Best Buy and it’s an A1864 even though I just added it to my AT&T plan upgrade for regular price, not the $100 markup.

Sure Best Buy wants their “new plan” kickback.. who doesn’t on launch day? They’re probably getting more than $100 back.. but otherwise they’d have to charge a fee because I’m sure like game consoles, there’s little profit left for a third party seller.. at least the phone company gets a new account for two years if you finance for zero interest.

 

[Iconoclysm]

That's a fair point, but I remember when there were news articles predicting BB's collapse within a year or two. Instead they've held revenue flat against the Amazon onslaught. That's quite good news relatively speaking, and IMHO Best Buy shouldn't be lumped in with Sears like the post I was responding to.

Sears on the other hand is on borrowed time. Literally "borrowed" because they'd already be bankrupt if the CEO hadn't repeatedly rescued it with gigantic loans from his hedge fund money.

I completely agree that they've escaped death. However, using their stock price as the indication of how well they've done since is just not accurate. They aren't thriving, they didn't triple their profits or revenue, they simply survived.
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Agreed - but quoting flat revenue isn't the whole story either. That was my only point.

No, you're right, investor outlook for them is positive. But the whole market has also risen so using that 3x growth story is not even accurate on stocks alone.

 

[Stangs55]

So I have two iPhone X's confirmed for paying pull price with in store pickup on 11/3.

I've heard nothing about a cancellation. Will this still be honored and available?
Going to be pissed if I have to go to the back of the line at Apple for the full price option after waking up at 3am to order...

 

[Tech198]

This should teach 'em

 

[opfreak]

Crybabies ruined it. Who really cares what best buy sells its phone for? No one is forced to buy it. Furthermore, BB priced matched.

Some people just like to bitch.

 

[tremlock]

Best Buy always charges $100 at launch. This is not new this year

 

[b0nd18t]

I got caught up in this. I purchased 2 phones and didn’t realize the price was $100 higher than MSRP. I felt completely scammed when I learned they charged more and promptly canceled my order. Just left a really bad taste in my mouth and I tried to be a supporter of their business (amazon takeover imminent). No more.

And for those who are saying price match blah blah blah. NO. They won’t let you for this phone. It even told me that as part of the automated system before I spoke to a person to cancel my order. So stop acting like it was an option.

 

[KPandian1]

Best Buy sold an iPhone that everyone is used to buying at Best Buy for the Maximum Retail Price (minimum enforced by Apple) that everyone pays everywhere, all these years.

The people staying awake at 3:00 am to place an order had a certain amount of trust that they were NOT being swindled of $100! They just clicked on the iPhone X icon and clicked Buy.

Best Buy is not unknown for such deceptive practices, usually in-store. No amount of blaming Apple for over-charging for its products can deviate from this deception.

Companies like Apple, Bose, etc., control the minimum selling price to maintain their aura, no matter the development and production costs.

Deception by Best Buy exposed, deal with it. Don't blame Apple.

I am a card carrying Best Buy customer.

 

[pl1984]

Best Buy sold an iPhone that everyone is used to buying at Best Buy for the Maximum Retail Price (minimum enforced by Apple) that everyone pays everywhere, all these years.

The people staying awake at 3:00 am to place an order had a certain amount of trust that they were NOT being swindled of $100! They just clicked on the iPhone X icon and clicked Buy.

Best Buy is not unknown for such deceptive practices, usually in-store. No amount of blaming Apple for over-charging for its products can deviate from this deception.

Companies like Apple, Bose, etc., control the minimum selling price to maintain their aura, no matter the development and production costs.

Deception by Best Buy exposed, deal with it. Don't blame Apple.

I am a card carrying Best Buy customer.

How did they deceive buyers? Details please.

 

[KPandian1]

How did they deceive buyers? Details please.

My second sentence.

 

[pl1984]

My second sentence.

That sentence says nothing about how people were being deceived / swindled. In fact I'm looking at the BestBuy site right now and I see the iPhone SE is clearly listed with a retail price of $399.00. I then check the Apple online store and find the same phone being sold for $349.00. I assume the same held true, save for the difference of $100.00 compared to $50.00, for the iPhone 8/8 Plus/X until BestBuy removed the non-carrier option. I see no deception. No swindling. In fact the only thing that appears to exist is ignorance on behalf of buyers.

 

[santaliqueur]

Best Buy always charges $100 at launch. This is not new this year

Also not new: Harvey Weinstein, Kevin Spacey, and Bill Cosby's improprieties. And they have all recently blown up, Spacey and Weinstein most recently. Sometimes all you need is the right kind of attention and the wind just takes you someplace. It doesn't matter that Best Buy hadn't done anything different than they normally did. The iPhone X has more attention on it than any phone, possibly ever.

 

[elorangutan12]

People, stop complaining about paying $100.00 for the iPhone X. If it is such a big deal, cancel the damn order and wait 5-6 weeks for it.

 

[santaliqueur]

So stop acting like it was an option.

You think we all "knew it was an option" but complained about it anyway?

We didn't know they refused to price match for this phone. I bought one from them for full price when Apple didn't open their orders until about 3:10 AM. I got one from Apple with the IUP, but kept my order with Best Buy in case I want to sell it and make a few dollars.

Knowing they won't price match on this phone is not common knowledge, and I didn't know about it until your post. Not everyone knows what you know, so don't react like we do.

 

[pl1984]

You think we all "knew it was an option" but complained about it anyway?

We didn't know they refused to price match for this phone. I bought one from them for full price when Apple didn't open their orders until about 3:10 AM. I got one from Apple with the IUP, but kept my order with Best Buy in case I want to sell it and make a few dollars.

Knowing they won't price match on this phone is not common knowledge, and I didn't know about it until your post. Not everyone knows what you know, so don't react like we do.

It's OK for you to make a few dollars but not Best Buy?

 

[Syk]

Don't know how people are feeling swindled or deceived by BB selling the phone for $100 more.

The price was on the check out screen. Apple had already announced the price for the phone so you can't say you didn't know what the price for the phone was.

It's your own fault if you bought from BB and didn't notice the $100 extra price.

As I said in the other thread. If I was buying an X out right and I could have slept in till 6am and still preordered the phone from BB for $100 more and still got it on the 3rd or following week. I wouldn't have cared if I wanted the phone that bad. That $100 would have been worth sleeping in rather than playing the waiting game at 2am only to have the app crash and push me to the back of the line, if the app even let me in.

$100 would sure beat paying ebay/craiglist sellers price.

Also depending on what credit card you charged it to, some have price protection. I would have just got my card company to refund me the $100 on my statement. Before someone says credit card charges interest. Still put it on the card, get the $100 adjustment and pay the statement off before interest applies

 

[dampfnudel]

It's 2017, Best Buy should've known better than to anger the social media gods with their greed.

 

[santaliqueur]

It's OK for you to make a few dollars but not Best Buy?

It's ok for you to jump to conclusions and not read my post AT ALL?

I have no issues with Best Buy making extra money here. You should probably read posts before you comment. Otherwise, you risk looking like a complete fool.

 

[pl1984]

It's ok for you to jump to conclusions and not read my post AT ALL?

I have no issues with Best Buy making extra money here. You should probably read posts before you comment. Otherwise, you risk looking like a complete fool.

I did read your post. I see nothing in it that makes my comment to you make me look a fool. Feel free to explain though, I'm happy to learn.

 

[lordofthereef]

Maybe it has something to do with a current promotion on credit cards (Citibank) for 5% off Best Buy purchases until the end of the year. I assume Best Buy sponsors these rebates but they have less margin to lose on the iPhone?

It doesn’t. They do this every year. With every iPhone. This isn’t new. For some reason the internet marched into it like crazy this time around.

 

[MotherFinMike]

Up until This year I would get two phones at full price from Best Buy an I would get them price match each a an every year

 

[santaliqueur]

I did read your post. I see nothing in it that makes my comment to you make me look a fool. Feel free to explain though, I'm happy to learn.

Fine, even though you jumped all over me, and it's on you to defend your post, I'll explain why you were wrong. I'm looking forward to either:

• Your apology, or
• You attempting to argue your way out of why you were wrong

First, I never said I was upset Best Buy was charging more, so it's really strange that you chose to reply to me like I'm caught red handed and bolding your post. IT'S FINE FOR YOU TO MAKE MONEY BUT NOT BEST BUY?!??!?

It's fine for both of us to make extra.

While I would have attempted to price match at Best Buy, I'm not too concerned that they don't allow people to do it for this phone. Either I will sell it for a profit ($100 less than I would've made) or I'll return it sealed for what I paid.

You look like a fool because you are trying to make me look bad for having an opinion I don't have. Either you can't read or you chose not to. I'm not sure which is better.

 

[lordofthereef]

Hey Lordofthereef, that wasn't because of you at all, and sorry if it came off that way.
I just spoke with customer service and it sounds like the best way to take care of the situation is to let the phones get delivered, and go into your local BestBuy and talk with a manager there. They said their hands are tied with pre-orders, but once they're fulfilled, it's your phone and you can go talk with a manager at a store and they can advise customers there.

I’m happy that it sounds like you’re getting taken care of. It’s always a bummer when people lose faith in a company based on one incident. (Not saying you have but if you believed some of the comments nobody would shop at Best Buy again).

Ive had to fight for things there too. Years ago my klipsche subwoofer failed under warranty. They (at the time at least, but maybe still) had a deal where you just take it in to Best Buy to swap out since they are too heavy to ship and there were no klipsche stores nearby. They refused me. Twice. Finally I came in and got in thenlgone with corporate in front if the CS manager. Corporate confirmed I was correct (which I told them I was told BY BEST BUY that this was the policy), and I got my sub swapped.

 

[alphaod]

Honestly I still don’t understand why people are still bickering over this charge. If you want to complain go after those car dealers that mark up low production cars with the same kind of arguing fitness. They don’t mark up by $100. They mark up by five digits sometimes.

 

[lordofthereef]

I got caught up in this. I purchased 2 phones and didn’t realize the price was $100 higher than MSRP. I felt completely scammed when I learned they charged more and promptly canceled my order. Just left a really bad taste in my mouth and I tried to be a supporter of their business (amazon takeover imminent). No more.

And for those who are saying price match blah blah blah. NO. They won’t let you for this phone. It even told me that as part of the automated system before I spoke to a person to cancel my order. So stop acting like it was an option.

I still recommend you call. If you look in this exact thread, at least three people now have said they’ve been promised a price adjustment ($100 refund). It’s completely up to you who you do business with, but it would make sense to me to at least try.

As far as amazon takeover being imminent, I’m not sure I see what you’re seeing when looking at Best Buy financials and stocks. But even if it gets to that, this would be terrible for consumers. Once amazon has a stranglehold in every market imagineable, they can do whatever they want to with prices. It may feel better on some egos in here, but would be terrible for consumers.
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Also not new: Harvey Weinstein, Kevin Spacey, and Bill Cosby's improprieties. And they have all recently blown up, Spacey and Weinstein most recently. Sometimes all you need is the right kind of attention and the wind just takes you someplace. It doesn't matter that Best Buy hadn't done anything different than they normally did. The iPhone X has more attention on it than any phone, possibly ever.

The problem is that people are acting like this is indeed new, stating it is dishonest, gouging, and using other ridiculous terms. I think it’s inportant to point out that it isn’t new, because that is part of the facts, and therefore they aren’t taking advantage of the iPhone X hype, as has been claimed. Even the most recent MR article took quite a sensationalist soon in the topic a few days back.