Best Buy Stops Some Sales of New iPhones After Pricing Backlash | Bloomberg

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.” Apple didn’t comment on Best Buy’s move when asked about it on Tuesday.

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.”

In a statement posted Tuesday to its website, Best Buy explained its original iPhone pricing strategy.

“Many customers told us they like to buy a phone that is not ‘activated,’ meaning it does not come with a carrier contract,” the company said in the statement. “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. 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.

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Best Buy Stops Some Sales of New iPhones After Pricing Backlash – Bloomberg.