Best Buy Selling iPhone X on Installment Plan Only After Criticism Over $100 Premium

Best Buy is no longer selling iPhone X and iPhone 8/8 Plus models outright following criticism of the $100 premium it was charging over Apple's retail prices, reports Bloomberg.

When pre-orders kicked off for the iPhone X on Friday, Best Buy was selling the full-priced 64GB model for $1,099 and the 256GB model for $1,249, $100 more than Apple asks for the two devices. Similar price increases were applied to iPhone 8 and 8 Plus orders.

Best Buy only offers the iPhone X via carrier payment plan now

Best Buy confusingly said it was charging a premium because flexibility sometimes has a cost, and that by offering full-price iPhones, customers can "get a phone the way they want." The statement made little sense as the same full-price commitment-free iPhones are available from Apple and other retailers.

Rather than dropping its prices, Best Buy has decided it will no longer offer iPhone X, iPhone 8, and iPhone 8 Plus models for outright purchase, instead only selling them via carrier installment plans from Verizon, AT&T, and Sprint. The payment plans feature no extra charge, with the monthly device payments going directly to carriers.

"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."

When a customer purchases an iPhone via a carrier installment plan, Best Buy receives a payment from the carrier in question, but that payment is not received for iPhones at full price, which seems to be why Best Buy was charging an additional $100. No other retailer charges an additional $100 for the iPhone, though.

While Best Buy has stopped offering the latest iPhone models as an outright purchase sans installments, it is continuing to sell older models and charging a $50 premium on those devices when purchased without a carrier payment plan. The iPhone 7, for example, is priced at $599, $50 more than Apple charges.

Top Rated Comments

(View all)
Avatar
37 months ago
More proof that this company has lost it’s way.

Ashamed to drive past their headquarters 2 times a day.
Score: 31 Votes (Like | Disagree)
Avatar
37 months ago

They have been doing this for years. When my dad bought an iPhone 4 on launch day from Best Buy he was surprised to find an extra $100 tacked on the bill vs what AT&T and Apple would’ve wanted. Don’t understand why it’s just now becoming a problem. That’s why I don’t buy phones from Best Buy anymore.

They were doing it on the iPhone 7 and 7 Plus too when I was looking at them a few weeks ago (shortly after launch of 8 and 8 Plus). They dropped the prices by $100, which brought them in-line with original MSRP, and didn’t reflect the new MSRP of $100 less all carriers and Apple were charging. They also don’t price match on phones.

Because the new trend is to make mountains out of mole hills it seems. Everyone here that is whining about it and how bad BB is, isn't even buying one from them, but feel they have to make a big deal about it.

There are SO MANY other scenarios in retail where the business is selling something for more than retail and people can't hand over their credit card fast enough. Ever buy wine in a fine restaurant? Twice the retail price, but to people swear and bad-mouth the restaurant and promise never to go back?

People here make no sense.
Score: 24 Votes (Like | Disagree)
Avatar
37 months ago
If this isn't the definition of American greediness, I don't know what is.
Score: 21 Votes (Like | Disagree)
Avatar
37 months ago
That's hilarious.

Imagine applying the same response to an Apple issue...

"In response to criticism at six-week wait times for the iPhone X, Apple has decided to stop selling it completely."
Score: 20 Votes (Like | Disagree)
Avatar
37 months ago
As if they needed any more reason to join Sears on the Soon to be Bankrupt Companies List.
Score: 15 Votes (Like | Disagree)
Avatar
37 months ago
LOL, BestBuy does a shameless money grab operation, gets called out on it, throws a temper tantrum, drops the ball, and goes home. Waa, waa.
Score: 14 Votes (Like | Disagree)

Top Stories

iPhone Maker Foxconn Says China's 'Days as the World's Factory Are Done'

Wednesday August 12, 2020 7:55 am PDT by
China will no longer be the world's manufacturing epicenter going forward, according to Apple's largest supply chain partner Foxconn, which has been gradually expanding its operations in other countries amid the U.S.-China trade war. "No matter if it's India, Southeast Asia or the Americas, there will be a manufacturing ecosystem in each," said Foxconn chairman Young Liu, according to Bloombe...

Leaker Jon Prosser: Apple Watch and iPad Launching in September, iPhone 12 Event to Take Place in October

Wednesday August 12, 2020 4:31 pm PDT by
Apple last month confirmed that this year's iPhone 12 models will launch outside of their normal September timeframe and will be "available a few weeks later," which has led to speculation about when an event might be held. Leaker Jon Prosser, who sometimes shares accurate knowledge of Apple's plans, today said that Apple will hold its iPhone 12 event during the week of October 12, with...

Apple Removes Fortnite From App Store [Update: Epic Files Lawsuit Against Apple]

Thursday August 13, 2020 11:58 am PDT by
Just hours after Epic Games introduced a new direct payment option for Fortnite that skirts Apple's in-app purchase rules, Apple has pulled the Fortnite app from the App Store. Fortnite is no longer available for download on the iPhone or the iPad, and Apple provided a statement to MacRumors on Fortnite's removal:Today, Epic Games took the unfortunate step of violating the App Store...

Apple to Launch Bundled Subscription Services Called 'Apple One'

Thursday August 13, 2020 3:41 am PDT by
Apple will launch a new range of subscription service bundles called "Apple One" as soon as October, according to a new report by Bloomberg's Mark Gurman. The series of bundles would allow customers to subscribe to several Apple digital services together. This is expected to result in a lower monthly price than when the services are subscribed to individually. Bloomberg reports that the...

Apple Releases iOS and iPadOS 13.6.1 With Fix for Storage Issue and Green Tinted Displays

Wednesday August 12, 2020 1:31 pm PDT by
Apple today released iOS and iPadOS 13.6.1, minor updates that come a month after the release of the iOS 13.6 update with Car Keys and Audio Apple News+ stories. The iOS and ‌iPadOS‌ 13.6.1 updates are available on all eligible devices over-the-air in the Settings app. To access the updates, go to Settings > General > Software Update. iOS 13.6.1 addresses an issue that could cause...

Apple Begins Selling Refurbished 2020 13-inch MacBook Pro Models

Friday August 14, 2020 4:22 am PDT by
Apple has begun selling discounted refurbished 2020 13-inch MacBook Pro models through its online store in the United States for the first time, with up to $200 savings available on some base configurations compared to brand new models. Currently, Apple's refurbished options for the latest 13-inch MacBook Pro lineup are limited to models with the 8th-generation Intel Core i5 and Core i7...

Apple Releases macOS Catalina 10.15.6 Supplemental Update With Virtualization Bug Fix

Wednesday August 12, 2020 1:20 pm PDT by
Apple today released a supplemental update for macOS Catalina 10.15.6, with the update coming a month after the original launch of macOS Catalina 10.15.6. The ‌‌macOS Catalina‌‌ 10.15.6 Supplemental Update can be downloaded from the Mac App Store using the Update feature in the System Preferences app. According to Apple's release notes, the update fixes a problem that could cause...

Samsung's Galaxy Buds Live vs. Apple's AirPods Pro

Thursday August 13, 2020 1:48 pm PDT by
Samsung last week unveiled new flagship smartphones and the new bean-shaped Galaxy Buds Live, a set of wireless earbuds with Active Noise Cancellation that are designed to rival Apple's AirPods Pro. We got a set of the new Galaxy Buds Live and compared them to the AirPods Pro in our latest YouTube video. Subscribe to the MacRumors YouTube channel for more videos. Priced at $179, the Galaxy...

iPad Pro Keyboard Comparison: Logitech's $160 Folio Touch vs. Apple's $300 Magic Keyboard

Tuesday August 11, 2020 2:11 pm PDT by
Logitech recently debuted the Folio Touch, a keyboard and trackpad case designed for the 11-inch iPad Pro that serves as an alternative to the Magic Keyboard. In our latest YouTube video, we compare the $160 Folio Touch to Apple's $300 Magic Keyboard to see which is better. Subscribe to the MacRumors YouTube channel for more videos. Logitech is selling the Folio Touch for $160, while Apple's...

Spotify Sides With Epic Games in Battle Against Apple's App Store Fees

Thursday August 13, 2020 2:32 pm PDT by
Spotify, which has also faced off with Apple over Apple's App Store policies and fees, today weighed in on Epic Games' fight with Apple over Fortnite's removal from the App Store. Unsurprisingly, Spotify has sided with Epic Games, applauding Epic's decision to "take a stand against Apple." From a statement provided to Recode's Peter Kafka:We applaud Epic Games' decision to take a stand...