Best Buy Nearly Matches Apple in iPhone Sales
Apple made the right decision by making Best Buy one of its primary outlets back in 2008. Over the past four years, the major retail chain increasingly becomes an important partner to Apple. Best Buy has 1100 stores and about 600 hosts Apple’s booths in them. Today, Best Buy almost sells as many as iPhone as Apple itself, according to CIRP (Consumer Intelligence Research Partners). The firm approached iPhone owners asking them where they bought the handset. CIRP found that Best Buy accounted for more than 75 percent of iPhone units sold.
The actual breakdown of the iPhone sales percentage is also interesting; Apple distributed 15 percent of the units sold in the United States, while Best Buy makes up 11 percent of the sales, just four percent shy of Cupertino itself. Carriers are the biggest distributors of iPhone with AT&T at 32 percent, Verizon 30 percent and Sprint 7 percent. Walmart and Radio Shack also contribute to Apple’s sales, although the percentages are very small. Apple’s online store is obviously very productive, although it has insignificant retail footprint.
Best Buy is currently the largest electronic retailer in Eastern United States, while the Western United States is still led by a narrow margin by Fry’s Electronics. In the 2011 fiscal year, the company reported a revenue of $16.26 billion, with a modest net profit of $651 million, or about 17 percent lower than the previous year. The retail chain performed poorly in global market, with numerous stores closed in China and the United Kingdom.