Best Buy no longer selling iPhone X outright |

Best Buy no longer selling iPhone X outright

Peter Terlato 2 November 2017 NEWS

The retailer was selling the latest iPhone model, unactivated, at $100 above Apple’s pricing.

Consumer electronics retailer Best Buy has decided to stop selling the latest iPhone models at an outright price, instead only offering customers an option to purchase these new devices on monthly payment plans.

Best Buy received backlash on social media last week after shoppers noticed the retailer had priced the unreleased iPhone X, upfront, for $1,099 (64 GB) and $1,249 (256GB), $100 higher than Apple’s own pricing.

Bloomberg reports Best Buy said the $100 premium was added because offering a range of purchasing options “has a cost”. Best Buy receives payments from network carriers when it sells phones pre-connected. However, there is no incentive or commission for devices that are sold unactivated, without a fixed network connection.

The added premium only applied when customers decided to buy the iPhone X at full cost price. Those who opted for monthly installment plans with network carriers were charged the same as Apple’s original pricing.

Best Buy said it had originally intended to give customers a choice to buy the latest iPhone models outright, unactivated, realizing buyers may wish to replace broken phones or are on company plans, unable to upgrade.

“Although there was clearly demand for the un-activated iPhone X, selling it that way cost more money, causing some confusion with our customers,” Best Buy spokesperson Danielle Schumann said in a statement.

“That’s why we decided to only sell the phone the traditional way, through installment billing plans.”

Best Buy continues to sell older iPhone models outright, including the iPhone 7, at $50 above Apple’s pricing.

The Verge noticed that Best Buy’s strategy was somewhat similar to its approach in offering a $100 discount to customers who opted for an installment plan purchase of the Google Pixel 2 device. However, this time, rather than offering a price reduction, customers who don’t go in for the monthly option pay a higher price upfront.

Pre-orders for the iPhone X began on October 27. The new model goes on sale in stores on November 3, 2017.

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