By Erika Morphy MacNewsWorld Part of the ECT News Network
08/13/08 11:44 AM PT
Apple has further expanded its partnership with electronics retail behemoth Best Buy. Soon, alongside the specially displayed iMacs and MacBooks found in some Best Buy stores, shoppers will find iPhone 3Gs. Previously, the only places in the U.S. to sell iPhones have been AT&T stores and Apple's own boutiques.
Run Your Entire Contact Center in the Cloud Many businesses are increasingly seeking ways to improve the quality, flexibility, and scalability of their traditional call centers. Download this free white paper and learn the top 8 reasons to consider going virtual.
Big-box retailer Best Buy (NYSE: BBY) will begin stocking the iPhone 3G this September, giving the device shelf space both in the Mac section of the store as well as in Best Buy Mobile.
Best Buy will sell the phone at the suggested retail price of US$199 for the 8 GB model and $299 for the 16 GB model with the start of a new two-year service contract -- the same prices found at AT&T (NYSE: T) and Apple (Nasdaq: AAPL) retail locations.
The popular device is a welcome addition to the store's lineup, Best Buy spokesperson Jeff Dudash told MacNewsWorld. "We certainly recognize the high level of interest and demand for these products."
Best Buy will receive regular shipments of the device throughout the holiday season, he added, though he declined to provide specifics about inventory levels or expected sales .
While stocking a new product is usually not an indicator of a retailer's overall go-to-market strategy , the iPhone is in a separate case. Up until now, it was only available in Apple and AT&T stores, Dudash noted.
Having the iPhone in-house could further increase the store's street cred with Apple fans, as Best Buy is one of the few big-box electronic retailers that stock Macintosh computers.
Growing Sales
Best Buy's announcement dovetails with a client research note Piper Jaffray analyst Gene Munster has reportedly issued. In it, he re-adjusts his estimated number of iPhones Apple will sell in the fourth quarter from 4.1 million to 4.47 million.
Clearly marketing the iPhone 3G will help Best Buy's momentum, especially since there's still buzz around the device more than a month after its release, IDC Senior Research Analyst Ryan Reith told MacNewsWorld.
"Best Buy is clearly growing, and it will be a larger presence in the United States towards end of this year and in 2009," he said.
Indirect Channel
That said, the iPhone is unlikely to deliver a huge boost to Best Buy's overall retail sales, Reith said. "It is more of an indirect sales channel for Mac products. The majority of iPhone sales will still continue to be made through Apple and AT&T stores."
Estimates for the iPhone 3G's sales volume are still a work in progress, Reith said, noting that a number of analysts have increased their estimates of sales because of initial uptake.
Indeed, the iPhone 3G appears to be following the same trajectory of the original iPhone's initial release last year. "In both cases, Apple sold a huge amount in the first weekend, and sales continued to be strong for several weeks," Reith said. With the first version, sales declined after the iPhone had been on the market and lost some of its brand-new shine.
That will likely happen with the 3G as well, he said.
"Q3 will certainly have extraordinary numbers for them, but there won't be a continuous uptick in sales unless they do a holiday promotion. Then, after the new year, people will look to see what is next."
Best Buy Kiosks Aim to Snag Customers on the Fly August 11, 2008
Best Buy is trying a new retail channel -- the vending machine, of all things. The electronics retailer plans to place automated kiosks at airports across the country in an effort to reach customers while they're traveling. The machines will offer MP3 players, phone chargers and other smaller items.
Related Stories
What to Do With That Old iPhone? August 12, 2008
Those who have an original, first-generation iPhone may be tempted to buy the new iPhone 3G. When someone does that, what's the best way to put the old model out to pasture? There are plenty of options, depending on what your situation is. You can give it away, sell it to an eager buyer, or de-phone it and use it as an iPod touch.
Related News Alerts
More by Erika Morphy
Windows 7 Flies Off the Shelves November 06, 2009
Early sales figures on Windows 7 boxed software suggest a high level of consumer enthusiasm for the OS. Unit sales were a whopping 234 percent higher than Vista's out of the gate. The revenue haul was not as impressive, as Microsoft offered sharp discounts to spur presales. Also, sales of PCs with Windows 7 preinstalled have been lackluster -- but October is historically a weak month for PC sales.
Southwest Doesn't Fool Around November 06, 2009
Either Southwest Airlines had better deals for my favorite route than its competitors or its superior Web site tools made it easier for me to ferret them out. Either way, kudos to Southwest. In the not-so-hot department were the airline's long list of what passengers weren't allowed to do and its very short list of what Southwest was obliged to do for them. Left me feeling a little chilly.
Commerce Search Puts Google Inside Retailers' Catalogs November 05, 2009
Google has launched a new cloud-based search tool targeting enterprise-level e-commerce operations, just in time for the 2009 holiday selling season. Commerce Search provides a set of features designed to improve the relevance of results for consumers searching a retailer's own product catalog, while boosting cross-selling opportunities.
Headline Feeds
price of US$199 for the 8 GB model and $299 for the 16 GB model with the start of a new two-year service contract -- the same prices found at AT&T (NYSE: T) and Apple (Nasdaq: AAPL) retail locations.
Talkback: 
