Best Buy goes installment-only on Apple's iPhone 8 & X after backlash over $100 premium

AppleInsider · October 31, 2017 8:06PM

Best Buy has removed options to buy an iPhone 8 or X upfront from its U.S. website, which had previously generated controversy since the retailer was charging a $100 premium on top of Apple's normal retail prices.

"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 told Bloomberg on Tuesday. "That's why we decided a few days ago to only sell the phone the traditional way, through installment billing plans."

The retailer's listings for the iPhone 8 and iPhone X now only show options to pay in installments through AT&T, Sprint, or Verizon.

Best Buy typically receives payments from carriers when it sells phones on their networks, but loses that money when it sells unactivated hardware. The retailer was presumably hoping that demand would make a premium acceptable.

The company's prior approach pushed the base price of an iPhone 8 up to $799, and the iPhone X up to $1,099.99. A 256-gigabyte iPhone X was hiked to $1,249.99, just $50 short of what Apple charges for a 13-inch MacBook Pro.

Launch-day preorders for the iPhone X have been exhausted, but it may still be possible to get one on Nov. 3 by camping out in front of an Apple store or another retailer selling the product.

mustseeuhdtv · October 31, 2017 8:25PM

It wasn't just the iPhone X and 8 that Best Buy did the $100 mark up for. They also did that with the 7 on pre-orders. I know because I did that. I ordered the 7 with the special black finish which too longer to come out. After the initial pre-order rush, the price went back to normal. Since I was waiting for mine, I got it at normal price.

edited October 2017

rhinotuff · October 31, 2017 8:34PM

Basically, regular markup on them wasn't enough, and Best Buy thought they'd tack on a little extra for those desperate enough to buy from them.

gregg thurman · October 31, 2017 8:51PM

rhinotuff said:

Basically, regular markup on them wasn't enough, and Best Buy thought they'd tack on a little extra for those desperate enough to buy from them.

Considering what the iPhone X is being offered at on eBay, Best Buy's $100 premium is a steal.

redraider11 · October 31, 2017 10:47PM

Free market capitalism at work.

odinsdad · October 31, 2017 11:08PM

"Best Buy" LOL

jd_in_sb · November 1, 2017 12:01AM

“Noise in the media” is a lame response. They should have said “we screwed up by trying to gouge the public, and we learned our lesson.” Best Buy isn’t trying to be competitive. The exact same $10 iPad case I bought for my dad on Amazon last month was selling for $49 at Best Buy. Their Pacific Sales division (refrigerators, washers, stoves) is doing very well and will likely be all that’s left of the company in a few years.

freerange · November 1, 2017 1:27AM

gregg thurman said:

rhinotuff said:

Basically, regular markup on them wasn't enough, and Best Buy thought they'd tack on a little extra for those desperate enough to buy from them.

Considering what the iPhone X is being offered at on eBay, Best Buy's $100 premium is a steal.

WTF - tacking on 100 by a retailer is totally fk’d. Don’t defend these asshats

freerange · November 1, 2017 1:28AM

redraider11 said:

Free market capitalism at work.

More like stupidity at work.

cali · November 1, 2017 2:12AM

Honestly it’s a high demand item. I don’t see what’s wrong. I’m sure it sold out at that price too.

lordjohnwhorfin · November 1, 2017 3:26AM

I’m shocked. Shocked! People are still shopping at Best Buy in 2017? You’re taking the piss.

[deleted user] · November 1, 2017 8:20AM

"Although there was clearly demand for the unactivated iPhone X, selling it that way made far less profit,"

there, fixed that for you "best buy".

[deleted user] · November 1, 2017 8:27AM

Since when was a 3rd party retailer selling a phone on contract the traditional way? Surely a mobile operator selling it on contract is traditional for them and selling an unlocked/sim-free device at rrp is traditional for all others? It's just introducing another middle-man who will surely take a slice and make it cost more overall.

georgebmac · November 1, 2017 11:08AM

Does anybody shop there anymore?

macxpress · November 1, 2017 12:42PM

GeorgeBMac said:

Does anybody shop there anymore?

I go there sometimes to look at things so I can see it in person and play with it...and then go to Amazon to buy them. I did buy my LG 4K TV there only because I don't trust UPS or FedEx to get it to my house without smashing the hell out of it. Other than something like a TV, I wouldn't buy anything from them.

I laugh when the first thing someone says is, I went to BestBuy to have my laptop looked at...

edited November 2017

spleenmaster · November 1, 2017 6:37PM

It’s amazing how many people don’t understand what’s really happening here. Best Buy only makes money on the phones they sell when they’re financed through a carrier’s plan attached to a plan. When someone buys a phone unlocked and unactivated, Best Buy doesn’t get paid. The stock they carried and employees they paid are not covered by the sale of the phone since they get no income from the phone sale. Nope, none. $100 to cover their expenses is not much for the risk they took.

What’s commonly also ignored is that every phone manufacturer (especially Apple) has historically also charged a comparable premium for buying unlocked phones not attached to a customer’s carrier account. This is business as usual. Best Buy was just doing what the Apple Store has always done.

toddzrx · November 1, 2017 8:28PM

jd_in_sb said:

“Noise in the media” is a lame response. They should have said “we screwed up by trying to gouge the public, and we learned our lesson.” Best Buy isn’t trying to be competitive. The exact same $10 iPad case I bought for my dad on Amazon last month was selling for $49 at Best Buy. Their Pacific Sales division (refrigerators, washers, stoves) is doing very well and will likely be all that’s left of the company in a few years.

freerange said:

gregg thurman said:

rhinotuff said:

Basically, regular markup on them wasn't enough, and Best Buy thought they'd tack on a little extra for those desperate enough to buy from them.

Considering what the iPhone X is being offered at on eBay, Best Buy's $100 premium is a steal.

WTF - tacking on 100 by a retailer is totally fk’d. Don’t defend these asshats

I suppose you guys were forced to enter a Best Buy store and buy a X at the higher price? Quit your whining. I suppose you throw a similar tantrum when grocery stores sell Post cereal for more than the other guy?

deminsd · November 1, 2017 10:12PM

freerange said:

gregg thurman said:

rhinotuff said:

Basically, regular markup on them wasn't enough, and Best Buy thought they'd tack on a little extra for those desperate enough to buy from them.

Considering what the iPhone X is being offered at on eBay, Best Buy's $100 premium is a steal.

WTF - tacking on 100 by a retailer is totally fk’d. Don’t defend these asshats

Do you think before hitting "post comment" button? You do realize BB gets no deal from Apple. Carriers make money by you buying their service. How is BB supposed to make money on non-carrier sales if they don't tack on a little mark-up? How about this...let's say you are lucky enough to buy a brand new, hot off the press, totally in-demand iPhone X for $1000. Would you put it up for sale on Craigslist for $1000 or would you mark it up and try to make a profit. Understand now?

anantksundaram · November 2, 2017 2:41AM

What is Best Buy?

teaearlegreyhot · November 2, 2017 3:17PM

A retailer is entitled to charge whatever mark-up they like on a product they sell. To be constrained by the manufacturer is called price-fixing, and is illegal.

Best Buy goes installment-only on Apple's iPhone 8 & X after backlash over $100 premium

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