Best Buy Tries Laptop-Contract Model

Best Buy has begun testing a program in which it will sell laptop computers at a discounted price along with an Internet service contract, its CEO told Bloomberg News in an interview.

The model had been used previously for mobile phones and netbooks, by both mobile phone carriers and Best Buy itself.

In the interview, Brian Dunn said the offer is in place at “selected stores,” with prices ranging from free to $399 with a service contract. It’s part of the company’s plan to compete with Walmart, the Web and other retailers.

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  • http://DavidGaffney David Gaffney

    A few months or years down the road Best Buy will be facing regulatory scrutiny and/or class-action lawsuits from customers who took the deal and then defaulted on the contract, claiming that they were misled during the sale. Many customers will just want the free or discounted laptop and have no intention of honoring the contract for the duration. Just ask the cellular carriers and or DBS providers about their "early termination penalty" headaches. If enough consumers whine loudly enough about "early termination penalties", even unjustifiably, the authorities will assume that their complaints must be credible, no matter how much documentation Best Buy can produce to the contrary.