Best Buy to Offer Refurbished iPhones

Best Buy recently became the first retailer to offer refurbished iPhone 3Gs at its stores. The news follows AT&T’s offer for refurbished iPhone 3Gs and Wal-Mart starting to sell brand-new iPhone 3Gs at a $5 discount.

Best Buy Mobile stores are selling the ‘refurbished’ iPhone 3G at $149 for the 8GB model and $249 for the 16G model. In comparison, new iPhone 3Gs retail for $199 for the 8GB model and and $299 for the 16GB model at Best Buy Mobile. Consumers are required to sign a 2-year service contract with AT&T. Best Buy promises iphone buyers will not leave the store without multimedia and smartphone setup and personalization, such as e-mail and data transfer.

Originally the phones were returned during a 30-day trial period and refurbished. In addition to a full one-year standard warranty on the refurbished iPhone 3G, customers can also buy a two-year Geek Squad Black Tie Protection service plan. At the start, the phones will be available at 350 Best Buy stores nationwide, but will expand to all U.S. Best Buy stores that offer AT&T by the end of January.

This move is estimated to be pushed by Apple as a way for the iPhone to stay relevant, as it did with the iPod, in face of growing competition.