Best Buy to sell iPhones starting Sept. 7
In a move that will significantly expand its retail presence in time for the holiday season, Apple has agreed to let retailing giant Best Buy sell the new iPhone 3G through its nationwide chain of Best Buy Mobile outlets starting early next month.
Best Buy markets cell phones in the United States through 970 full-size stores and 16 stand-alone Best Buy Mobile shops. All U.S. Best Buy stores will carry the iPhone except for a handful of outlets located in areas where AT&T does not provide cell phone coverage.
The deal, first reported on Tuesday by Apple Insider and confirmed by Best Buy Mobile president Shawn Score (see here), could serve both companies well.
For Apple (AAPL), which has been struggling to meet the extraordinary demand for its second-generation iPhone through its smaller network of Apple and AT&T retail stores, the deal puts its hottest-selling product in the hands of one of world’s savviest retailers. Best Buy, a Fortune 100 company, is the world’s largest consumer electronics retailer, with a 21% share of the U.S. electronics market and a 3.6% share of the cell phone market, up from 2% last year.
For Best Buy (BBY), which has been angling for the iPhone business for more than a year, the deal will add Apple’s cachet to its expanding smartphone offerings and help drive traffic to new Best Buy Mobile departments within its stores. Best Buy is aggressively marketing a variety of smartphones, from RIM (RIMM) BlackBerry Curves to Palm (PALM) Treos, and is the exclusive reseller, with Sprint (S), of the Samsung Instinct, one of the iPhone’s nearest competitors.
Apple and Best Buy have been slowly expanding their relationship since the retailer began carrying iPods in 2002. Best Buy started selling Macs in selected stores in 2006, and recently expanded the program to more than 600 outlets.
The deal can be seen as a victory for Best Buy’s “consumer centricity” marketing strategy, by which it caters to the needs of specific types of customers in specialty boutiques within its full-size stores. Last week Best Buy announced that it had completed a nationwide roll out of its Best Buy Mobile store-within-stores, a joint venture with Britain’s CarPhone Warehouse that began in 2006 and has led, according to Best Buy, to a 10-fold increase, year-over-year, in high-end multimedia phone purchases (link).
Best Buy, based in Richfield, Minnesota, operates more than 1,150 stores in the United States, Puerto Rico, Canada, China, Mexico and Turkey. Earlier this year it purchased a half-share of CarPhone Warehouse, which has 2,400 outlets in nine European countries.
Apple operates 219 stores, 187 of them in the United States, where customers have been queuing up for the iPhone 3G since early July. AT&T (T) sells iPhones in some 2,000 stores, but the current waiting period for customers who want to buy one from AT&T is 7 to 10 days.
Everyone says the are done with Best Buy and they will never shop there again etc, but I guarantee you that they will come back in when they need something. That’s the beauty of Ignorance, it’s memory is as short as the IQ’s that represent it, and is what Best Buy banks on.
Best Buy’s customer service is the worst in the industry. They have no clue how to treat a customer. I do not know who is worse for service, Best Buy or Gateway computer. Go anywhere other than Best Buy and purchase any computer other than Gateway!
I do agree with the customer service experiences at Best Buy. Time and time again they have failed to follow through on their promises. Be careful buying there warrenties as well. I got burned by Best Buy because of something that is not listed on the warrenty but they expect you to pay for when shipping any item off for repairs.
I’ve never had a problem with customer service at Best Buy. But I guess I’m just not a good consumer.
Seems to me, Apple will need to force a mini-Apple store inside of BestBuy for this marriage to work. Personally, I refuse to buy anything from BestBuy after years of annoying teenager employees (dont forget BB started the whole no-commission sales model) that could care less if u spend $3,500 on a new TV. BestBuy simply took advantage of the growth areas in the 90s to build new stores everywhere, but eventually they will be mature and screwed just like Home Depot.
Lets just hope Circuit City doesnt go under, because BestBuy will price fix and dictate what you will be buying in consumer electronics, and how much $$ they will take from you to get it.
Apple should really distance themselves from BestBuy. Look at the Apple section in BestBuy now, nothing but a Ghost Town.
The customer service (sales) truly is poor. You get what you pay for. You don’t go to WalMart for the customer service either, do you?
I’m with everyone else here about bestbuy and their geeksquad. I have got nothing but bad customer service. Everytime I have had to get something repaired, I had t take it back because they did not really fix the problem. They have sent me replacement parts that dont work and wrongly diagnosed the problem with my computer which ended up costing me a lot more. I am done with them.
WOW! I love you “I’ll never shop at Best Buy folks!” You bitch and moan about price, about the service, yet it was probably because of your own arrogance.
At least this is a good news for best buy iphones fans. Another store where to buy your iphone.
I don’t like Best Buy either.
The sales people are not knowledgeable, and they are over priced on alot of items.
I don’t like their computer repair people, they are nasty and they charge for recovery disks when you buy a PC. Which is sick because your spending a few hundred and the nerve to charge extra.
I had an incident where the recovery cds were corrupt and the guy goes we cannot do anything about it.
I returned the laptop and went somewhere else.
Wow! What a bunch of negative nancys out there. Apparently you guys have never been to a best buy but once or twice since all the locations I have purchased products from have been received with nothing but excellent customer service and impressive product knowledge. They are as big as they are because they actually listen to the customer and set them up with the right product that fit within your needs. Other big box retailers just set you up with products they need to move or worse yet don’t even help you one on one so you pick a product you think you need and ultimately end up with something that is not a good fit.
I wouldn’t buy anything of value from Best Buy unless it was half price or less. You must consider their arrogance because of their size. If you purchase a big ticket item from them and even fork over the extra for the extended warranty you will be left up the creek if anything happens to the item. My new notebook broke, they returned it in worse shape than it was sent. They sent it off a second time, lost it??? Showed up a few weeks after the warranty expired. Moral of the story,, got screwed by the big guy and he really don’t care.
Bestbuy is a butcher of electroic stores? Then how do they own 21% of the market in electroincs? How are they the worlds biggest electroics retailer? Because they got to the top with service and inovation.
They will own a big part of the Cell phone market too shortly. They already comp 1.6% in the first 1/4
I do not like Best Buy and would not buy this product there, even if it were cheaper than other outlets.
I was discriminated against at best buy because i am disabeled and white. This is a very big mistake for Apple.
Why would Apple let their service be compromised by letting Best Buy sell their product. They provide such bad service……they are like a electronic butcher shop
There is an amazing amount of negative reporting out there, compared to the amount of positive reporting.
But it really doesn’t matter too much. The really important people are voting with their pocketbooks. And the people who are trying to run Apple down are getting left with egg on their faces!
C’mon, PED, surely you can find a negative in this information you’re passing along, can’t you? Someone, somewhere had a problem with their iPhone which, when multiplied by the potential new sales from Best Buy would create voluminous problems for Apple, right? Figure out a way to get the shorts motivated to dump the stock which is up! We can’t have that. Remember, P/E ratios and all that stuff. Geeze, you’re slipping…
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For those of you that feel “we’ll all go back to best buy” you’re correct, but to look, to research, but not to buy. I’ll check out an item at Best Buy then buy it on the net for less and with much less hassle than dealing with their clerks. Returns on the net nay take longer but they are far less complicated to deal with than the kids at best buy. Best Buy does so well because they prey on unsuspecting consumers. I believe you’ll find that will soon change with the poor economy!