iPhone snags cover of Best Buy circular ahead of Sunday's launch

[AppleInsider]

While there's no sign that sales of Apple's iPhone 3G have slowed, they're due for an incremental boost come Sunday when the device goes on sale at Best Buy retail outlets nationwide.

A copy of next week's Best Buy circular (below) duly notes the handset's arrival with a sprawling glamour shot across its cover, the latest example of a blossoming relationship between Apple and the No. 1 U.S. specialty electronics retailer.

Best Buy has long offered Apple's complete line of iPod digital music players. More recently, it expanded a store-within-a-store concept that highlights most of the company's Mac computer line to approximately 600 of its locations.

On September 7th, Best Buy will also become the first independent U.S. retailer to carry the iPhone 3G when it's put up for sale at 970 Best Buy locations and 16 Best Buy Mobile specialty outlets across the country. More importantly, however, the deal broadens Apple's reach by expanding the number of iPhone distribution points by approximately 30 percent to over 3000 locations.

Up until now, Americans could only purchase the iPhone from approximately 2,200 locations, including approximately 190 Apple retail stores and 2000 mobile phone dealerships operated by exclusive US iPhone carrier AT&T.

According to next week's circular, Best Buy will be promoting free in-store phone and email setup -- a complimentary offering at Apple's own retail shops -- to customers who purchase an iPhone 3G with one of four pre-designed accessory packages.

The packages range in price from $106 for an "On the go" bundle with a 5-pack of DLO surface shields and Shure Stereo headset, to $234 for an "In the car" kit that includes a Belkin FM transmitter and Jawbone Bluetooth headset.



In a report to clients this week, Lehman analyst Ben Reitzes noted that Apple has managed iPhone 3G into a supply and demand equilibrium just in time for Sunday's Best Buy launch. He, along with several other Wall Street analysts, have cited the Best Buy play and recent international roll outs as cause to consider that current quarter iPhone sales estimates have been lowballed.

"We continue to believe our estimate of 3.8 million iPhones sold in Apple’s fiscal fourth quarter is very conservative," he said. "Checks of build plans and in-store demand continue to indicate that investors could be positively surprised by demand this quarter and its impact on Apple’s free cash flow."

[ View this article at AppleInsider.com ]

[BRussell]

I keep hearing that they're going on sale at all Best Buy locations, but I don't think that's true. My home state of Montana doesn't have AT&T service, nor do a few other states I believe, so I sincerely doubt our Best Buys are going to be selling iPhones.

[solipsism]

Originally Posted by BRussell

I keep hearing that they're going on sale at all Best Buy locations, but I don't think that's true. My home state of Montana doesn't have AT&T service, nor do a few other states I believe, so I sincerely doubt our Best Buys are going to be selling iPhones.

That would make sense as there would be no way for Best Buy Mobile to set you up with an AT&T account. I'm sure you won't be finding any of those flyers in your local paper.

[halhiker]

Why in HELL does Best Buy charge 99 cents EXTRA to buy the iPhone from them? I know it's only 99 cents but there is NO reason one should have to pay MORE just to get a phone at Best Buy.

[SpamSandwich]

Is 99 cents really gonna break you? Oy, vey. If you don't like it, spend the extra 2 bucks in gas going somewhere else.

[Slewis]

Null.

[halhiker]

Originally Posted by SpamSandwich

Is 99 cents really gonna break you? Oy, vey. If you don't like it, spend the extra 2 bucks in gas going somewhere else.

NO. 99 cents will not break me but IF I were in the market for a new iPhone I would go to ATT just out of principle. There is NO reason BB should be charging MORE to get the iPhone there. It's just stupid.

Oh, and the ATT store is closer to my house so I'd save on gas, too.

[jakarpinsk1]

Will BestBuy activate your phone on spot?? like att and apple does?? or no....

Im hoping not so then i can go out and buy the new phone without all the plan charges

[solipsism]

Originally Posted by jakarpinsk1

Will BestBuy activate your phone on spot?? like att and apple does?? or no....

Im hoping not so then i can go out and buy the new phone without all the plan charges

Part of your comment seems serious and part seems joking. I'll answer as though you are serious. Whether they activate it or not, you still have to signup for an AT&T account.

Not all Apple Stores activate the phones for you. When I got mine, they let me do it self without even opening up the iPhone box.

[jakarpinsk1]

Originally Posted by solipsism

Part of your comment seems serious and part seems joking. I'll answer as though you are serious. Whether they activate it or not, you still have to signup for an AT&T account.

Not all Apple Stores activate the phones for you. When I got mine, they let me do it self without even opening up the iPhone box.

What i mean is are you going to be able to purchase just the phone like you were able to when the 1st generation iPhone came out.

[solipsism]

Originally Posted by jakarpinsk1

What i mean is are you going to be able to purchase just the phone like you were able to when the 1st generation iPhone came out.

The prices on the flyer don't indicate a full, subscription-free price so I'd no. When that does happen, Apple Stores will surely be selling them at the $599/$699 price along with any other chain they have partnered with.

[cameronj]

Originally Posted by jakarpinsk1

What i mean is are you going to be able to purchase just the phone like you were able to when the 1st generation iPhone came out.

No.

Not that it matters - the 3G can't be unlocked (hasn't yet, at least) to run on networks like Tmobile's.

[Virgil-TB2]

Originally Posted by solipsism

The prices on the flyer don't indicate a full, subscription-free price so I'd no. When that does happen, Apple Stores will surely be selling them at the $599/$699 price along with any other chain they have partnered with.

They do have those prices on the flyer, although they use them as the "regular" price and indicate that their price is some kind of "sale." So by buying from Best Buy "On Sale" you are paying more than anywhere else.

In Canada, that advertisement would be illegal. First it's a lie that you can buy one for the higher price, second there appears to be no mention of the contract.

Totally misleading, and intentionally so.

[solipsism]

Originally Posted by Virgil-TB2

They do have those prices on the flyer, although they use them as the "regular" price and indicate that their price is some kind of "sale." So by buying from Best Buy "On Sale" you are paying more than anywhere else.

In Canada, that advertisement would be illegal. First it's a lie that you can buy one for the higher price, second there appears to be no mention of the contract.

Totally misleading, and intentionally so.

I didn't even see the regular prices being mentioned. I was pulling them from what AT&T said they would be once they stop requiring a contract upfront (not that it would matter since it's still locked and no other carrier in the US can utilize those bands in the US). The do have a "See page 2 for details" remark and a '1' and '2' next to the capacity and price, though the remarks are not listed on that page.

I agree that it's not truthful enough. I wish the US would pass laws that would require the full amount to be disclosed for the contract, included any and all additional fees and taxes.

[alexandercase]

yes, as with all 3G iPhones you have to have it unbricked at the location of purchased, or else it wont work. And all best buy items use a ".99" ending, so I imagine it just keeping up with their normal doings. and your claim about them acting like it is on sale, is kinda asinine. it lists the price in a normal best buy price tag and considering everything is "for sale" at best buy and all they were showing is that it is advertised. If something at best buy says "as advertised" on the tag some people automatically assume it is on-sale, when that isn't true, it is just advertised. and i think it is silly to seriously get hung up on .99 cents. even if it just on "principal" which still makes no sense.

[hittrj01]

yes, as with all 3G iPhones you have to have it unbricked at the location of purchased, or else it wont work. And all best buy items use a ".99" ending, so I imagine it just keeping up with their normal doings. and your claim about them acting like it is on sale, is kinda asinine. it lists the price in a normal best buy price tag and considering everything is "for sale" at best buy and all they were showing is that it is advertised. If something at best buy says "as advertised" on the tag some people automatically assume it is on-sale, when that isn't true, it is just advertised. and i think it is silly to seriously get hung up on .99 cents. even if it just on "principal" which still makes no sense.

Finally, somebody who makes sense.

[JeffDM]

Originally Posted by jakarpinsk1

What i mean is are you going to be able to purchase just the phone like you were able to when the 1st generation iPhone came out.

You still have to sign a contract before you leave, so no, it's not quite the same. They sign you up with the plan, scan the serial number bar code on the back of the box and it's paired to your account. Whether or not they activate it or you go home to do it, that part of the process really doesn't matter.

Originally Posted by alexandercase

yes, as with all 3G iPhones you have to have it unbricked at the location of purchased, or else it wont work.

This is not true according to my experience and that of solipsism. Once the phone's information is in the system, any working copy of the latest itunes should unlock it. The version at the store is just a cut-down activation only version.

Originally Posted by alexandercase

and i think it is silly to seriously get hung up on .99 cents. even if it just on "principal" which still makes no sense.

If you're already at Best Buy, that little difference won't get you very far in gas, not to mention time lost fighting even more traffic to get to the location that offers the 1/3%-1/2% lower price.

[solipsism]

edit: pipped by JeffDM.

[hittrj01]

What i mean is are you going to be able to purchase just the phone like you were able to when the 1st generation iPhone came out.

I would imagine they are setting the phones up right there in the store. They are advertising email setup in the store with the purchase of an accessory package, and that's pretty hard to do without activating the phone first. My guess is yes, but maybe they will set it up only if you get Geek Squad service.

[REO]

Originally Posted by halhiker

Why in HELL does Best Buy charge 99 cents EXTRA to buy the iPhone from them? I know it's only 99 cents but there is NO reason one should have to pay MORE just to get a phone at Best Buy.

Best Buy has a price match policy. I'm sure it applies to the iPhone as well. A rep at our local Best buy said that Best Buy would match the price of any phone from AT&T, including the price after rebate. If Best Buy has a phone for $149.99, and AT&T has it for $200.00 ($100 after rebate), Best will sell you the phone for $100, and you don't have to wait for the rebate. The rep also said they were being trained to set up and activate the iPhone.

By the way, this is my first post here.

Ron

[hillstones]

Boycott appleinsider now that they have sunk to a new low with political advertisements.

The website should stick with advertisements based on their content, not to promote their political beliefs.

[oberpongo]

I guess this was long planned as soon as demand and supply would be equal.
All productions capacities were needed for the aug 22nd launch in those new countries. Now that some nee shipments are there apple can expand its retail presence.

Even in Germany T-Mobile has just this week begun to roll TV-Spots again and sent flyers through the Mail that they are shipping the product again, after having stopped all advertisements following the launch week.

[freelander51]

Originally Posted by AppleInsider

In a report to clients this week, Lehman analyst Ben Reitzes noted that Apple has managed iPhone 3G into a supply and demand equilibrium just in time for Sunday's Best Buy launch. He, along with several other Wall Street analysts, have cited the Best Buy play and recent international roll outs as cause to consider that current quarter iPhone sales estimates have been lowballed.

Well Mr Reitzes maybe you should have just read my numerous postings to the lack of iPhones here The iPhone3G has arrived in Belgium Unfortunately we are out of stock on our website.http://iphone3g.mobistar.be/en/index.cfm. Snapshot taken this morning.

This is hardly what I would call equilibrium

[nvidia2008]

Originally Posted by freelander51

Well Mr Reitzes maybe you should have just read my numerous postings to the lack of iPhones here The iPhone3G has arrived in Belgium Unfortunately we are out of stock on our website.http://iphone3g.mobistar.be/en/index.cfm. Snapshot taken this morning.

This is hardly what I would call equilibrium

Honestly, I don't know what the hell is going on in Belgium. It looks like they've stopped selling iPhones. It's been a no-stock situation for like weeks and weeks! Months, even...

Got my nice little fully unlocked iPhone 3G from Singapore. = Win
Belgium iPhone3G situation = Fail.

I think Mr. Reitzes is only talking about the USA situation. Globally, the equilibrium is as equal as... well... who knows. It just aint at any equilibrium outside of the USA & UK.

[Abster2core]

Wouldn't it be prudent to just go to the Best Buy site and see exactly what is the process?

Buying an iPhone on 9.7.08

It will take about 45 minutes to purchase your iPhone 3G and set up your AT&T account. We know your time is valuable, so Best Buy® is offering scheduled, 1-hour appointment times for consultation and the purchase and setup of your new iPhone. Here's how the process works:

• Customers in line will receive iPhone appointment tickets from a Mobile Phone Specialist shortly before the store opens. A ticket reserves an iPhone 3G for you, whether you choose to wait in store or to schedule a day and time to return to this Best Buy for your iPhone 3G purchase and setup.

• Upon returning to Best Buy, customers who have chosen a specific date and time should visit our iPhone concierge at the front of the store to check in and begin their appointment.

• Appointments will cover everything from purchase to AT&T account setup. Geek Squad® Agents will be available to assist customers requesting e-mail setup or to answer questions.

• iPhone 3G will be available for purchase at over 900 Best Buy stores offering AT&T 3G service.

• One iPhone per customer.

• Due to strong demand, they will not be eligible for pre-order.

• Walk Out Working™ with AT&T plan sign-up and iPhone configuration in store.

• A large selection of iPhone accessories is now available at BestBuy.com and in Best Buy stores.


http://www.bestbuy.com/site/olspage....&type=category

[teckstud]

ZZZZZZZzzzzzzzzzzzzz..
Wow- I'm so impressed- the cover of Best Buy.

[ncee]

Originally Posted by teckstud

ZZZZZZZzzzzzzzzzzzzz..
Wow- I'm so impressed- the cover of Best Buy.

Apple is doing this for "In your face coverage" - Only!

This is a "Win - Win" for Apple.

They get a TON of folks who will see the iPhone / image, wonder about it, got into "BESTBUY" to see / ask about it, and maybe buy one. If not, no big deal, this is where BestBuy wins. You go in to find out about the iPhone, and leave having purchased a 50" flat screen TV, computer, washer / dyer or something else.

If this stunt puts thousands of new customers into BestBuy, this is a GRAET thing, and likely worth whatever they paid. It's all about floor traffic, and this will create that.

Skip

[nvidia2008]

Most of us think it's great for Apple... Just that some of us have deep reservations about the quality of staff, training and product knowledge at Best Buy compared to Apple Stores.

Originally Posted by ncee

Apple is doing this for "In your face coverage" - Only!

This is a "Win - Win" for Apple.

They get a TON of folks who will see the iPhone / image, wonder about it, got into "BESTBUY" to see / ask about it, and maybe buy one. If not, no big deal, this is where BestBuy wins. You go in to find out about the iPhone, and leave having purchased a 50" flat screen TV, computer, washer / dyer or something else.

If this stunt puts thousands of new customers into BestBuy, this is a GRAET thing, and likely worth whatever they paid. It's all about floor traffic, and this will create that.

Skip

[Abster2core]

Originally Posted by nvidia2008

Most of us think it's great for Apple... Just that some of us have deep reservations about the quality of staff, training and product knowledge at Best Buy compared to Apple Stores.

I would think that they have been training for this for some time.

In any event, their staff will be more knowledgeable than many of the AI posters.

[kjgienapp]

Originally Posted by nvidia2008

Most of us think it's great for Apple... Just that some of us have deep reservations about the quality of staff, training and product knowledge at Best Buy compared to Apple Stores.

I used to work at Best Buy and this is a very good point. I was in computers and had a wide knowledge of computers and at least knew how to find the answer if I did not know it; instead of making something up like some employees do just to complete the sale. There were also two other employees in the department that were good with computers. But my manager on the other hand, did not have a good base of knowledge of computers. She only knew what the Best Buy training told her which is how to sell computers. Some of the things we would hear her tell customers were so wrong. When it came to Apple products fortunately they all just sent customers to me. I was the only one with an iMac/Macbook and I could usually help the customers with their questions and complete a few sales a month.

[jawporta]

I hope the Geek Squad is well trained on the iPhone, as it is when you buy a phone from AT&T it's like buying a phone from a stack of wood. They have no answers other than "Go to and Apple Store" If the phone is DOA, they send you to Apple even though you just bought it from them. If there's anything wrong with the phone, even if it's an AT&T problem they send you to Apple to figure out. If you could help it, never buy a phone from AT&T.

[wbrasington]

Originally Posted by nvidia2008

Most of us think it's great for Apple... Just that some of us have deep reservations about the quality of staff, training and product knowledge at Best Buy compared to Apple Stores.

Agreed, but I think in terms of quality of staff you could probably expect BB to be at least on par with AT&T staff in knowledge about the iPhone. Maybe AT&T has improved in the last 6 weeks, but the stores I've been have been pretty poor at it.

A side note, to the snarky people all pretending to be incensed over the ninty-nine cents thing, I think you're having a little fun with us all over something commonly referred to as "a mistake". Not a pricing decision made to add .99 to what they charge. Since it would go against corporate policy and create problems, it's obviously a mistake and when you get inside the store you'll pay 199. Of course, all you guys fired up about how BB is screwing Apple customers out of ninty-nine cents, you all run out to BB and check and see and come right back and tell us if we're wrong and the evil BB doing this on purpose.
I think it's a simple mistake, probably not the only one in their flyer and like most flyers out there these things do happen.

[Abster2core]

Originally Posted by wbrasington

A side note, to the snarky people all pretending to be incensed over the ninty-nine cents thing, I think you're having a little fun with us all over something commonly referred to as "a mistake". Not a pricing decision made to add .99 to what they charge. Since it would go against corporate policy and create problems, it's obviously a mistake and when you get inside the store you'll pay 199. Of course, all you guys fired up about how BB is screwing Apple customers out of ninty-nine cents, you all run out to BB and check and see and come right back and tell us if we're wrong and the evil BB doing this on purpose.
I think it's a simple mistake, probably not the only one in their flyer and like most flyers out there these things do happen.

I agree. In fact, I just viewed a view pages and every product has the ".99¢" suffix.

In addition, BestBuy has a price-matching guarantee. http://www.bestbuy.com/site//olspage...02&id=cat12098

However, it may appear to be better in Canada (as cell phones are not listed)

Either prior to purchase or within 30 days of purchase (14 days for computers, monitors, printers, notebook computers, camcorders, digital cameras, radar detectors, portable DVD players, and air conditioners) should you find a lower advertised price, including those on the internet from an authorized Canadian Dealer, we will match that price and beat it by giving you an additional 10% of the difference. http://www.bestbuy.ca/helpsection/EN...gon=&langid=EN

[wbrasington]

Originally Posted by Abster2core

I agree. In fact, I just viewed a view pages and every product has the ".99¢" suffix.

In addition, BestBuy has a price-matching guarantee. http://www.bestbuy.com/site//olspage...02&id=cat12098

However, it may appear to be better in Canada (as cell phones are not listed)

Either prior to purchase or within 30 days of purchase (14 days for computers, monitors, printers, notebook computers, camcorders, digital cameras, radar detectors, portable DVD players, and air conditioners) should you find a lower advertised price, including those on the internet from an authorized Canadian Dealer, we will match that price and beat it by giving you an additional 10% of the difference. http://www.bestbuy.ca/helpsection/EN...gon=&langid=EN

Wow!

In Canada, if BB makes this mistake then you can buy an iPhone for 198.90!

[Abster2core]

Originally Posted by wbrasington

Wow!

In Canada, if BB makes this mistake then you can buy an iPhone for 198.90!

Good point. But in Canada, hey, that could be nearly a tenth of a litre of gas.

Note that BestBey US does not match other stores, just their own?

[mobycat]

Did anyone notice the 16GB one says "Black or white."

There's a white iPhone?

(I would say it's a mistake with the touch, but there is no white touch, either...or a white classic, for that matter)

[freelander51]

Originally Posted by Abster2core

Note that BestBey US does not match other stores, just their own?

So if we are cheaper then ourselves (in the times of centralized pricings) we shall refund you the difference ? But we wont match the prices of our nasty competitors ! What sort of a piss-pot price guarantee is that ?

[rahrens]

Originally Posted by mobycat

Did anyone notice the 16GB one says "Black or white."

There's a white iPhone?

(I would say it's a mistake with the touch, but there is no white touch, either...or a white classic, for that matter)

Uh, yeah, there is. I own one, bought it on launch day. Looks great, better, I think, than the black.

[teckstud]

Originally Posted by ncee

Apple is doing this for "In your face coverage" - Only!

This is a "Win - Win" for Apple.

They get a TON of folks who will see the iPhone / image, wonder about it, got into "BESTBUY" to see / ask about it, and maybe buy one. If not, no big deal, this is where BestBuy wins. You go in to find out about the iPhone, and leave having purchased a 50" flat screen TV, computer, washer / dyer or something else.

If this stunt puts thousands of new customers into BestBuy, this is a GRAET thing, and likely worth whatever they paid. It's all about floor traffic, and this will create that.

Skip

That sounds more like a Win-Win for Best Buy especially when they have every phone imaginable for sale and the Geek Squad starts to say " Oh you can get the same features in this Samsung for less- bla, bla , bla"

[mstone]

Originally Posted by hillstones

Boycott appleinsider now that they have sunk to a new low with political advertisements.

The website should stick with advertisements based on their content, not to promote their political beliefs.

When you offer advertising space for sale you can't refuse to sell it to someone just because you don't like their message - only if the content is offensive to the general public, illegal, misleading, false, or does not conform to your technical requirements can you refuse to accept it.