Best Buy won't let customers buy the iPhone X outright in response to complaints that it charged a $100 fee (BBY, AAPL)

pulse

October 31, 2017 10:32 PM

In a response to customer backlash, Best Best announced it was stopping some sales of the iPhone X.

Best Buy stopped selling un-activated iPhone Xs after customer complaints last week.
It will only sell the phones via carrier installment plans for the time being.

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 $100 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 installment plan through one of the carrier deals offered at its stores. Anyone interested in paying $999 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 $100 premium fee.

Bloomberg

The "noise" the company refers to was pretty ruthless.

@BestBuy Never buying from ... @ John Strikwerda

No thanks @BestBuy I#emo#m not... @ David Lindsley

Best Buy's initial reasoning for charging $1,099 and $1,249 instead of following Apple's $999 and $1,149 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 installment 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.

Business Insider emailed Best Buy and was referred to the company's statement on its website.

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