Best Buy ends sale of some iPhones in wake of backlash
Best Buy has stopped some sales of iPhone X and iPhone 8 models after customers complained about the retailer charging a $100 premium on the already expensive smartphones.
The company, one of Apple’s key retail partners, still sells all iPhone models on the carrier installment plans. The prices of these payment programs are the same as the monthly plans offered by carriers and Apple.
Last week, when users went to Best Buy’s website to purchase an iPhone X outright, the price was $1,099 and $1,249 for the two configurations. Apple’s pricing is $999 and $1,149.
“Although there was clearly demand for the unactivated 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.” Apple had no comment on Best Buy’s move.
People 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.”
On its website Tuesday, Best Buy said:
“Many customers told us they like to buy a phone that is not ‘activated,’ meaning it does not come with a carrier contract. This may be because they broke a phone and want to replace it or are on a company plan and not allowed to upgrade. To accommodate this, we gave consumers the choice to buy the iPhone X through installments plans with carriers or buy it outright, unactivated.”
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. But Apple, carriers and some other retailers stick to the official pricing. Best Buy sells older models, including the iPhone 7, at a $50 premium, according to a check of its website on Tuesday.
“We tried something designed to offer choice but instead created confusion. We may try again at some point, only this time with better execution,” Best Buy added in its statement.