Report: Apple, Best Buy Strengthen Ties

By Ed Oswald | Published June 1, 2006, 12:07 PM

The partnership between Best Buy and Apple seems to be strengthening, with at least one analyst noting that MacBooks, MacBook Pro, and iMac systems have appeared in select stores. If a new strategy, it would mark Apple's largest retail expansion outside of its company-owned stores in several years.

Best Buy had already been selling the Mac Mini since April of last year. Before that, Macs had not made an appearance in the nation's largest retailer since 2003, when the previous deal was terminated. Best Buy has been selling the ubiquitous iPod music player for several years.

Current Analysis analyst Samir Bhavnani noted that Apple now has a prominent display section, in ways reminiscent of its standard store layout, in certain Best Buy locations. However, neither company is officially confirming any expansion of the already-present relationship.

Such a move makes good business sense for Apple, Bhavnani argues. The company only operates 147 stores, with much of the country unserved or at a fairly far distance from those locations. Partnering with a large electronics retailer would put Macs in front of a much larger customer base.

Apple has seen success in switching its line of desktop and notebook computers over to Intel-based processors. While the company privately was concerned of a slowdown in shipments due to the transition, it never materialized.

The addition of Boot Camp, which officially allows Windows to run on a Mac computer, may also help to boost sales. All in all, the new effort signifies a more aggressive Apple than many are accustomed to.

While the extent of the partnership is unknown, Bhavnani expects it to add to the company's bottom line as Apple moves into the back-to-school shopping season. Traditionally, this is the second busiest period behind the holidays.

Comments

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Costco has been selling the macmini for several months. I ask the manager in the costco I go to NY, and he said they are not selling well at all and are considering taking them off the selfs.

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Some things need to be sold. If there is one MacMini and 20 PCs that include monitors, keyboards, and a mouse .. The salesmen need to qualify the customer and suggest the mini and point out its benefits.

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The manager said they tried that, the customer didn't want it. They said if they wanted a mac they would go to the apple store.

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Best Buy is by no means "the nation's largest retailer".

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Well they are the nation's largest electronics retailer.

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