Tags: best buy | sales | apple | iphones | pricing | backlash

Best Buy Stops Some Sales of New Apple iPhones After Pricing Backlash

Best Buy Stops Some Sales of New Apple iPhones After Pricing Backlash
Sean-Pavone/Dreamstime

Tuesday, 31 October 2017 01:18 PM

Best Buy Co. said it stopped some sales of the iPhone X and iPhone 8 after consumers complained about the retailer charging a $100 premium on the already expensive smartphones.

The company, one of Apple Inc.’s key retail partners, still sells all iPhone models via carrier installment plans that let customers pay for the devices over several months. The price of these payment programs are the same as the monthly plans offered directly by carriers like Verizon Communications Inc. and AT&T Inc. and similar offerings on Apple’s website. 

Last week, when users went to Best Buy’s website to purchase an iPhone X at the full, upfront price, Best Buy charged $1,099 and $1,249 for the two configurations. Apple’s pricing is $999 and $1,149.

"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."

Last week, consumers took to Twitter to complain about the extra charge. "Never buying from you again," one Twitter user wrote. "Charging $100 premium due to demand is treating your customer like dirt."

Best Buy previously said the $100 premium was intentional because offering different purchasing options for iPhones "has a cost." The retailer gets payments from carriers when it sells phones that are already set up to work on the carriers’ networks. It doesn’t get that money when devices are sold without carrier activation. Still, Apple, carriers and some other retailers stick to the official pricing. Best Buy still sells older iPhone models, including the iPhone 7, at a $50 premium, according to a check of its website on Tuesday.

Preorders for the iPhone X started on Oct. 27 and the device goes on sale in stores on Nov. 3. Apple has said that preorders have been "off the charts."

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Best Buy Co. said it stopped some sales of the iPhone X and iPhone 8 after consumers complained about the retailer charging a $100 premium on the already expensive smartphones.
best buy, sales, apple, iphones, pricing, backlash
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2017-18-31
Tuesday, 31 October 2017 01:18 PM
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