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Rumor: Best Buy's iPad 2 sales strategy gets it 'blacklisted' by Apple

post #1 of 99
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Numerous rumors have claimed that Best Buy is in hot water with Apple over its alleged policy to stop iPad 2 sales once it meets its quota for the day, leaving the retailer "blacklisted" from further iPad sales.

Citing a source at Best Buy, CrunchGear reported this week that Best Buy was holding off on selling iPad 2 units it had in stock, telling customers they were sold out when, in reality, the stores had just reached their internal quota for that day. That strategy is rumored to have upset Apple, which is allegedly no longer allowing the retailer to sell the iPad 2.

"No less than (Apple Chief Operating Officer) Tim Cook is involved in this little snafu, and will be helping with the negotiations," the report said.

In addition, TUAW also received a tip that Apple "ordered a freeze on sales of the iPad 2 through Best Buy." The report also claimed that the retailer has pulled all stock except demo units.

Best Buy has been a partner in selling the iPad since the first-generation device launched last April. A year ago, Best Buy was the only non-Apple retailer that was allowed to sell the iPad, though other options such as Walmart and Target were added as the year went on.

Best Buy also has a unique partnership with Apple, as the electronics retailer commits a significant amount of floor space devoted specifically to Apple products in many of its stores. Best Buy began adding Apple boutiques to its stores in 2008.

In March, it was also rumored that Best Buy was considering giving the iPad to all of its on-the-floor sales associates at its 1,100 U.S. stores. It was said that employees would use devices such as the iPad to educate consumers and process purchases.
post #2 of 99
wizzle wuzzle?
post #3 of 99
This comes as no surprise; my only experience with Best Buy was less than stellar. Frankly, I wondered why, other than distribution, Apple had any association with these grifters.
post #4 of 99
Sounds to me like BB is trying to artificially prop up the tablet competition.
They probably think it is in their best interest to have a competitive field of tablets and be able to get better pricing from Apple.
Appears as though their plan has backfired.
post #5 of 99
Unambitious, loser Best Buy managers resorting to shady tricks, lies and deception inorder to fill their "internal quota"?

And what was up with that dumb Best Buy ad with the iPad wrapped in tape VS the Xoom? Why would they be dissing their best selling tablet?

Clearly, there are a bunch of morons with shit for brains in charge of Best Buy. Apple needs to wack them around a little bit and make them understand how ethical businesses operate. Otherwise, Apple should just pull all of their stock out from Best Buy and ban all Apple products from Best Buy stores permanently if they are not willing to comply or if they are unable to comply.

Apple doesn't need Best Buy.
post #6 of 99
Isn't this what apple stores were rumored to have been doing. Best buy needs to carry the iPad, just like apple needs best buy to carry it, because otherwise, best buy will be selling someone else's tablet, and telling customers the other tablets are better. A lot of people will get sucked in by this strategy.
post #7 of 99
Quote:
Originally Posted by Stourque View Post

A lot of people will get sucked in by this strategy.

Maybe a few dummies would, but it's nothing to be concerned about.

Buying a tablet is not an impulse buy. Most consumers, even the dumbest and most ignorant ones, have an idea about what they want before they go to a store. As far as tablets go, people either want an iPad or one of the others. If people are looking for an iPad, and an iPad is exactly what the majority of people are looking for, they would simply go to a store that sells iPads.

If somebody is dumb enough to want an iPad and ends up going to a Best Buy and they walk out with a Xoom, then they deserve what they get. Very few people are that stupid and foolish.

Apple has nothing to worry about. Best Buy needs Apple more than Apple needs Best Buy.
post #8 of 99
Quote:
Originally Posted by hamiltonrrwatch View Post

This comes as no surprise; my only experience with Best Buy was less than stellar. Frankly, I wondered why, other than distribution, Apple had any association with these grifters.

Quote:
Originally Posted by Apple ][ View Post

Unambitious, loser Best Buy managers resorting to shady tricks, lies and deception inorder to fill their "internal quota"?

And what was up with that dumb Best Buy ad with the iPad wrapped in tape VS the Xoom? Why would they be dissing their best selling tablet?

Clearly, there are a bunch of morons with shit for brains in charge of Best Buy. Apple needs to wack them around a little bit and make them understand how ethical businesses operate. Otherwise, Apple should just pull all of their stock out from Best Buy and ban all Apple products from Best Buy stores permanently if they are not willing to comply or if they are unable to comply.

Apple doesn't need Best Buy.

Baaa! .. MMBAAA! baa MMBAAAA! BAA!
post #9 of 99
This is exactly why I own an iPad instead of an iPad 2. I was at a best buy trying to purchase an iPad 2 and was told they were out, despite seeing several "on hold" at customer service.

I needed a device for a business trip and ended up getting an iPad instead, but from AT&T. I wasn't going to reward best buy for its deception.
post #10 of 99
Quote:
Originally Posted by hamiltonrrwatch View Post

This comes as no surprise; my only experience with Best Buy was less than stellar. Frankly, I wondered why, other than distribution, Apple had any association with these grifters.

Years ago I liked Best Buy for their selection and frankly, prices. I started hating them as well. My experience came from trying to buy a TV as a wedding "thank you" gift for my in-laws. I found their sales tactics to be highly deceptive. They displayed models that didn't come with stands, or boxes, or what not. They were high enough on the wall that they looked like regular unopened merchandise. We ended up going to Sears instead and got a great price and good experience. I'm done with Best Buy.
I can only please one person per day.  Today is not your day.  Tomorrow doesn't look good either.  
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I can only please one person per day.  Today is not your day.  Tomorrow doesn't look good either.  
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post #11 of 99
Best Buy was clearly trying to prop up Apple's competition. This seems more pervasive than just at the managerial level.

This was an extremely short sighted move by them. They can't keep bashing Apple and expect the company to behave nice with them. The individual sales folks have also had a large anti-Apple tilt, which Apple has ignored. Best Buy should have allowed the natural anti-Apple tilt of their employees to tilt the scales in the competitors' favor, instead of making it company policy.
post #12 of 99
The article explains a lot, showed up at a BB using an inventory tracker and was told they were sold out, but the inventory tracker showed they were in stock.

When I bought my MBA, I tried to get BB to give me a break on the price, since Apple gives me a corporate discount, they actually called me a liar till I showed them Apple's web page giving me a discount. Then they changed their tune and offered me their extended service plan for a whopping $20 off. I walked... Bought a MBA from the Apple store the next day.
post #13 of 99
best buy...its all about the spif
my families experience with best buy has been poor, especially in the computer aspect
most sales staff push you to inferior products, the same with cellphones
my sister inlaw was pushed to a sanyo dumphone 200 +data plan, i said why not iphone
she said the sales person said sanyo was better WTF

she went back and returned it

with amazon and OWC i don't need best buy

one time i bought some time ago when the first opened locally a tv with extended warranty
it broke, they wouldn't replace or repair, gave me a refund LESS the cost of the extended warranty because "i used it up taking it back"

and the scam of "setting up your computer", my nephew bought a laptop, returned it but the refund didn't include the setup fee, and wouldn't transfer to a new computer

its nice to look at the models then buy elsewhere
I APPLE THEREFORE I AM
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I APPLE THEREFORE I AM
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post #14 of 99
Quote:
Originally Posted by Boogerman2000 View Post

Baaa! .. MMBAAA! baa MMBAAAA! BAA!

post #15 of 99
I don't like Best Buy. They have a pretty good selection, but most everything is sold at MSRP. It's okay for window shopping, but I prefer to buy online or at smaller stores.
post #16 of 99
Quote:
Originally Posted by Boogerman2000 View Post

Baaa! .. MMBAAA! baa MMBAAAA! BAA!

Doing a Scrooge imitation?
post #17 of 99
I called this BB after seeing that they had inventory on one of the many trackers out there, they actually told me they had them in the back but where not allowed to sell them. Could not answer why.
post #18 of 99
Quote:
Originally Posted by Chris_CA View Post

Doing a Scrooge imitation?

Oh... I thought he was having a stroke...
na na na na na...
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na na na na na...
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post #19 of 99
Quote:
Originally Posted by Stourque View Post

Isn't this what apple stores were rumored to have been doing. Best buy needs to carry the iPad, just like apple needs best buy to carry it, because otherwise, best buy will be selling someone else's tablet, and telling customers the other tablets are better. A lot of people will get sucked in by this strategy.

Not exactly. Apple stores sell all the stock they have but just do so the following day to allow time for the product to be properly entered into the system and sold off 1 hour before the store opens... rather than the mayhem of basically taking them right off a palette and having iPad lineups clogging up the store during regular business hours. Best Buy had stock that was in the system ready to sell and was simply not selling it. Why? Who knows. Either to artificially increase demand or, most likely, to ensure they had enough iPads each day so store managers could get their "gold stars" or whatever. If your quota is $2000 a day (4 iPads) and you have 12 iPad that you KNOW will sell... you only sell 4 a day rather than risk not getting replenished with the hot selling item and missing your stupid quota for a few days in a row. Completely different than what Apple was doing.
post #20 of 99
Quote:
Citing a source at Best Buy, CrunchGear reported this week that Best Buy was holding off on selling iPad 2 units it had in stock, telling customers they were sold out when, in reality, the stores had just reached their internal quota for that day.

Can someone explain to me what Best Buy gets out of doing this, besides a pissed-off Apple? I just don't get the business logic. People come to your store and want an iPad 2, you have them in stock, but you tell the customers you're out of stock because... what, exactly? You're hoping they'll wander around the store and buy something else after being stymied in trying to buy an iPad 2? You're creating artificial scarcity to build hype? You want to spread out the traffic in your store across multiple days instead of everyone crowding the store at once? None of these ring true with me. I really want to understand what Best Buy thought it was going to gain by pursuing this strategy.
post #21 of 99
Quote:
Originally Posted by billin View Post

Can someone explain to me what Best Buy gets out of doing this, besides a pissed-off Apple? I just don't get the business logic.

Nothing to do with business logic. It's about stupid store managers wanting to make their sales quotas each day. So they have a hot selling item in short supply and they say hey... let's ration these out over a few days so we can be sure to make our sales quota each day. Head office will be really impressed and we won't lose our jobs. Oops.
post #22 of 99
Quote:
Originally Posted by NOFEER View Post

its nice to look at the models then buy elsewhere

... The only reason I ever go into BB.
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From out there on the moon, international politics look so petty. You want to grab a politician by the scruff of the neck and drag him a quarter of a million miles out and say, "Look at that!" -...
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post #23 of 99
Quote:
Originally Posted by Johnny Mozzarella View Post

Sounds to me like BB is trying to artificially prop up the tablet competition.
They probably think it is in their best interest to have a competitive field of tablets and be able to get better pricing from Apple.
Appears as though their plan has backfired.

I don't think that has anything to do with it. It generates traffic when they have a "new" batch everyday then if you don't get one today try again tomorrow. They are counting on this pushing other stuff out the door. Its the same reason the milk, eggs are at the back of the grocery store - and the specials are on the right when you walk. They want you to see all the other stuff they have and they are going to trot it all out for you. As far as the iPad FU - that was what was generating traffic.

Bad idea!
post #24 of 99
Quote:
Originally Posted by addicted44 View Post

Best Buy was clearly trying to prop up Apple's competition. This seems more pervasive than just at the managerial level.

This was an extremely short sighted move by them. They can't keep bashing Apple and expect the company to behave nice with them. The individual sales folks have also had a large anti-Apple tilt, which Apple has ignored. Best Buy should have allowed the natural anti-Apple tilt of their employees to tilt the scales in the competitors' favor, instead of making it company policy.

I've heard many a bad thing said about Apple by both Best Buy staff and Target staff. I just happened to be passing by as they spewed their anti-Apple 'sound bytes'. It is a tough call to know if they do more harm than good even being allowed to carry Apple when they often hire folks who would rather try to switch sell.

As with an old lady I witnessed as she was talked from an Apple product to a competitor with comments such as I heard like "Oh you are far better keeping out of Apple's walled garden". Or "All the laptops we sell are the same, you just pay more for Apple and in fact often get less ..." I nearly bust a blood vessel and had to force myself not to interject!
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Use duckduckgo.com with Safari, not Google Search
Been using Apples since 1978 and Macs since 1984
Long on AAPL so biased. Strong advocate for separation of technology and politics on AI.
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post #25 of 99
Quote:
Originally Posted by Johnny Mozzarella View Post

Sounds to me like BB is trying to artificially prop up the tablet competition.
They probably think it is in their best interest to have a competitive field of tablets and be able to get better pricing from Apple.
Appears as though their plan has backfired.

I don’t think it was anything so sinister. It just sounds like they wanted to make sure they some to sell each day, which isn’t a bad business strategy. Although Takeo’s comment sounds reasonable, too, which also isn’t sinister, just managers trying to look more successful than they are. Excluding Apple’s retaliation it’s not a bad move for them if that is how Best Buy’s upper management judge sales. You have to work the system to best suit your environment, it’s a far cry from anything hinky like creating an artificial demand. Either way all the iPads they receive will be sold, this just makes their numbers consistent.
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post #26 of 99
Quote:
Originally Posted by Apple ][ View Post

Apple doesn't need Best Buy.

With the sales at the levels they are at - that says it all.
post #27 of 99
BTW, is this a confirmed story yet? Before everyone going off on a tangent it would be great to get official confirmation somewhere. It was just last week that the rumor of Samsung installing keylogging software in their laptops started. The next day, after Hundreds of "F*** Sumsung" posts and repeats of the "news" all over the web, it became a "oops, our bad. Just a false positive from a virus scan."
melior diabolus quem scies
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post #28 of 99
We went in to look at the iPad 2 in our local store and the manager tried to sell them to every person that walked through that department. As we were standing there another associate came up to speak to us, we told her we were interested in buying an iPad 2 and she informed us all the one in store were preorders. The manager came back with an iPad 2 and I mentioned the preorders to him. He said he didn't care, we were right there right then. I decided not to buy it.
post #29 of 99
Quote:
Originally Posted by hamiltonrrwatch View Post

This comes as no surprise; my only experience with Best Buy was less than stellar. Frankly, I wondered why, other than distribution, Apple had any association with these grifters.

Probably so people like me, without being on a reservation list or whatever, can purchase the iPad 1 sooner than those who, at the same time, had placed an order for iPad 1 from Apple's online store weeks earlier and moaned on these message boards about still not receiving it yet!
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Ten years ago, we had Steve Jobs, Bob Hope and Johnny Cash.  Today we have no Jobs, no Hope and no Cash.

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Ten years ago, we had Steve Jobs, Bob Hope and Johnny Cash.  Today we have no Jobs, no Hope and no Cash.

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post #30 of 99
It seems to me that such a strategy would backfire on BB. When I went to BB to get a ipad2, they told me they were out of stock. My immediate reaction was NOT to go to another BB, but to go to the Verizon store down the block, and then to the AT&T store across the street. With Radio Shack added to the mix, that would have been my next choice. They're idiots for doing that. At the same time, if I was Apple, I wouldn't have black listed them, I would have cut BB's new stock deliveries by a significant percentage, and then boosted stock for BB's competitors.

Apple certainly doesn't need BB to sell their stuff because they have plenty of other retailers - and their own stores.


BB is a bunch of retatrds.
post #31 of 99
Quote:
Originally Posted by billin View Post

Can someone explain to me what Best Buy gets out of doing this, besides a pissed-off Apple? I just don't get the business logic. People come to your store and want an iPad 2, you have them in stock, but you tell the customers you're out of stock because... what, exactly? You're hoping they'll wander around the store and buy something else after being stymied in trying to buy an iPad 2? You're creating artificial scarcity to build hype? You want to spread out the traffic in your store across multiple days instead of everyone crowding the store at once? None of these ring true with me. I really want to understand what Best Buy thought it was going to gain by pursuing this strategy.

Producers of other tablets may give BB higher profit margins, or, they may, as car mfgrs do, give BB a bonus if annual/quarterly/etc. sales numbers exceed targets. Apple Insiders know why iPads are superior, but, e.g., Consumer Reports says the Xoom is almost as good. Non-techies may believe that, or, if iPads are "unavailable," other BB sales force blather.
post #32 of 99
Quote:
Originally Posted by jsimmons View Post

BB is a bunch of retatrds.

Spoken like a true.....retatrd?
post #33 of 99
Quote:
Originally Posted by Rot'nApple View Post

Probably so people like me, without being on a reservation list or whatever, can purchase the iPad 1 sooner than those who, at the same time, had placed an order for iPad 1 from Apple's online store weeks earlier and moaned on these message boards about still not receiving it yet!
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/

Thus the words "other than distribution", in my post. Or did you just hit return before reading?
post #34 of 99
Quote:
Originally Posted by digitalclips View Post

I've heard many a bad thing said about Apple by both Best Buy staff and Target staff. I just happened to be passing by as they spewed their anti-Apple 'sound bytes'. It is a tough call to know if they do more harm than good even being allowed to carry Apple when they often hire folks who would rather try to switch sell.

Maybe write to Steve for one of his famous short terse response, but ask him why they don't have an Apple representative that holds no allegiance to BB, but to Apple, like the two BB stores in my area have.

When I kept visiting to see if iPad 1 was in stock I was always told by Apple rep, none available, but in fact, it was the Apple rep whose advice got me an iPad 1 sooner then those that bought from Apple online by telling me what day they usually received their pitifully small quantity of iPad 1 and suggested to check BB.com in the morning of that day when inventory was input into the computer system.

Sure enough, next week, checked BB online 11 o'clock in morning on that specified day and by lunchtime was the owner of my iPad 1!

Apple online people who had ordered earlier then me, they were still waiting! \

Ten years ago, we had Steve Jobs, Bob Hope and Johnny Cash.  Today we have no Jobs, no Hope and no Cash.

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Ten years ago, we had Steve Jobs, Bob Hope and Johnny Cash.  Today we have no Jobs, no Hope and no Cash.

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post #35 of 99
Quote:
Originally Posted by hamiltonrrwatch View Post

Thus the words "other than distribution", in my post. Or did you just hit return before reading?

Uh, if they didn't use those "grifters" for 'other than distribution', what else would Apple be using them for!

Ten years ago, we had Steve Jobs, Bob Hope and Johnny Cash.  Today we have no Jobs, no Hope and no Cash.

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post #36 of 99
Quote:
Originally Posted by Rot'nApple View Post

Uh, if they didn't use those "grifters" for 'other than distribution', what else would Apple be using them for!

Well said

Apple doesn't make money by being stupid. They're trying to get product out to as many people, in as many venues as possible. Probably targeting people who don't normally use, or aren't comfortable using the internet to order product.

My point was that I don't like the way BB does business; their return policies, sales tactics, bait-and-switch, etc.
post #37 of 99
Here's an interesting take by Three Guys And A Podcast:
[URL="http://t-gaap.com/2011/4/8/apple-pulls-ipad-2-from-best-buy?site_locale=en"]
post #38 of 99
Quote:
Originally Posted by msuberly View Post

I don't like Best Buy. They have a pretty good selection, but most everything is sold at MSRP. It's okay for window shopping, but I prefer to buy online or at smaller stores.

that's exactly what i use best buy for. window shopping. if i want to test out a tv, camera, etc... i go to best buy. figure out which one i like, then order it online (usually from amazon).

and even still, it's a bad experience. the tv's don't have the remotes, the speakers are never hooked up, the cameras don't have memory cards so you can't take pictures... if the product even turns on at all...
post #39 of 99
Quote:
Originally Posted by island hermit View Post

Oh... I thought he was having a stroke...

I thought he was going for the sound that sheeple make (y'know, sheep + Apple = sheeple)...
Progress is a comfortable disease
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Progress is a comfortable disease
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post #40 of 99
Quote:
Originally Posted by OllieWallieWhiskers View Post

that's exactly what i use best buy for. window shopping. if i want to test out a tv, camera, etc... i go to best buy. figure out which one i like, then order it online (usually from amazon).

and even still, it's a bad experience. the tv's don't have the remotes, the speakers are never hooked up, the cameras don't have memory cards so you can't take pictures... if the product even turns on at all...


Same here. The only thing I buy from them, are "real" sale items (DVDs, games, etc.) and Black Friday goodies...
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