Wednesday, August 13, 2008

Apple willing to let BestBuy sell iPhones

Apple has a gold mine in the shape of it's iPhone, a device that continues to generate significant customer demand, and in fact so much demand, that if a customer wants to buy an iPhone in a AT & T store, there is a waiting time of around a week. Outrageous, some people would say, it's a device after all. But the iPhone has turned out to be such a hot device that people queue up to buy the iPhone, and Apple has sold millions of them so far. However, Apple hasn't exposed the phone in the retail market outside of the Apple and AT&T stores, and this restriction must still be limiting the number of phones they are able to sell. Well, it looks like they have re-considered; there seems to be an agreement to allow BestBuy to stock iPhones in BestBuy stores. Given that BestBuy is the largest electronics goods retailer, seems like Apple could expect a bump in the sales:


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.
For Best Buy, 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 BlackBerry Curves to Palm Treos, and is the exclusive reseller, with Sprint (S), of the Samsung Instinct, one of the iPhone’s nearest competitors.


This will push the iPhones into the hands of a larger number of consumers, and given impulse purchases, may lead to a bump up in sales for the iPhone. After all, a consumer going to buy some other phone may come across the iPhone and decide to buy. What is not yet clear is about how the activation will be handled for these iPhones.

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