Electronics chain Best Buy Inc. said Tuesday it will offer refurbished iPhone 3Gs at a steep discount.
The phones, made by Apple Inc., start at $149 for the 8-gigabyte version and $249 for 16 gigabytes, compared with $199 and $299, respectively, for new iPhones sold at Best Buy Mobile stores. A two-year service contract with AT&T Inc. is required.
The refurbished phones will be available at 350 locations initially, then at all U.S. locations offering AT&T by the end of January, the consumer electronics chain said. The phones have been returned by customers during the 30-day trial period and restored to "like-new" condition, Best Buy said.
The iPhone 3G connects to cellular providers' speedier third-generation networks and delivers faster Web surfing and online video than the original model.
For Apple, the announcement marks another step away from tightly controlling retail sales of its products. Best Buy was the first independent retailer to sell iPhones. And Wal-Mart Stores Inc. said last month it would also sell the iPhone with a $2 mark down.
Best Buy shares jumped 94 cents, or 3 percent, 30.94 in midday trading.
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