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Best Buy Up on Deal to Sell iPhone; Radio Shack Slips

August 13, 2008
by Eric Savitz
Blogger and Columnist, Barron's, Tech Trader Daily

Eric Savitz

Best Buy (BBY) shares are on the rise this morning on news that the company’s Best Buy Mobile stores will carry the Apple (AAPL) iPhone starting Sept. 7.

Pricing will be the same as it is through Apple and AT&T (T) stores: $199 for the 8GB model and $299 for 16GB, with a two-year AT&T service contract. Best Buy stores already sell iPods and Macs.

Meanwhile, Radio Shack (RSH) shares are sliding today. The retail chain already sells AT&T wireless service, but for now at least, isn’t going to be selling iPhones. Also hurting Radio Shack: news that the company has sold $325 million of 2.5 percent convertible senior notes due 2013.

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