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Best Buy Offering Apple iPhone for FREE: Too Good to be True?

Stocks in this article: BBY AAPL

NEW YORK (TheStreet) - Best Buy (BBY) has another smartphone promotion that seems almost too good to be true.

As part of its "Better Than Black Friday" Smartphone Savings Event this Friday, Jan. 3 and Saturday, Jan. 4, Best Buy is selling the Apple (AAPL) iPhone 5S for $124.99 when a customer signs up for a two-year contract in stores, at a Best Buy Mobile or online, the company said in an email on Friday.

Contracts are through Verizon, AT&T and Sprint.

Even better, Best Buy is offering the iPhone 5C for free during the two-day promotional event, with a two-year contract through the aforementioned providers.

The deal isn't just for Apple products. Best Buy is also offering the Samsung Galaxy S4 for free with two-year contract this weekend, as well as the HTC One for $29.99 and the LG G2 for $49.99. This is not even a trade-in deal.

(Full disclosure: Last month I took advantage of Best Buy's trade-in deal and for $120, I walked out of the Best Buy Mobile in Union Square with a iPhone 5S in gold, a new case, three free DVDs and I think a monthly bill that will actually be a few dollars less than what I am paying now. That last one I have to confirm when my AT&T bill comes.)

I can't say what Best Buy's margins will be like when fourth-quarter earnings reports come around, but I can say these deals are for real.

--Written by Laurie Kulikowski in New York.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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