- Best Buy stopped selling un-activated iPhone Xs after customer complaints last week.
- Going forward, it will only sell the phones via carrier instalment plans.
Hell hath no fury like that of an angry consumer with a Twitter handle.
Best Buy learned that the hard way last week after consumers complained on social media about the retailer’s decision to charge a $US100 premium on the new iPhone X when purchased without a wireless contract.
The electronics retailer heard the outcry and on Tuesday announced a big change: Best Buy will no longer let customers buy an iPhone X by paying for it up front.
The only way to buy an iPhone X at Best Buy now is to pay for it on a monthly instalment plan through one of the carrier deals offered at its stores. Anyone interested in paying $US999 to purchase an unlocked iPhone X outright will have to shop somewhere else — an outcome that Best Buy apparently considers preferable to simply scrapping its $US100 premium fee.
“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,” a Best Buy spokeswoman told Bloomberg.
The “noise” the company refers to was pretty ruthless.
Best Buy’s initial reasoning for charging $US1,099 and $US1,249 instead of following Apple’s $US999 and $US1,149 pricing model was that the additional fee allowed it to give its customers more flexibility.
It explained that when it sells a phone already activated on an instalment plan with a carrier, it gets a fee from that network, but an un-activated phone without a carrier plan attached generates no fees. Thus the need for it to make up for the lost fees with a higher price.
Best Buy is the only major retailer that doesn’t stick to Apple’s official prices. In a statement on its website, the company wrote that it may try to sell un-activated phones again in the future but “with better execution.”
Business Insider emailed Best Buy and was referred to the company’s statement on its website.
EXCLUSIVE FREE REPORT:
The Top 4 Apps and Platforms Takes That Go Against The Grain Report by the BI Intelligence Research Team.
Get the Report Now »
Never buying from you again. Charging $US100 premium due to demand is treating your customer like dirt.
— John Strikwerda (@JohnStrikwerda) October 27, 2017
No thanks @BestBuy I’m not paying $US100 above the list price to buy an iPhone X from you!! This is blatant price gouging!! Shame on you!! ???????? https://t.co/4Ynq999cnS
— David Lindsley (@RetProf77) October 27, 2017
Business Insider Emails & Alerts
Site highlights each day to your inbox.