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

Posted:
in iPad edited January 2014
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.
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Comments

  • Reply 1 of 99
    samwellsamwell Posts: 78member
    wizzle wuzzle?
  • Reply 2 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.
  • Reply 3 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.
  • Reply 4 of 99
    apple ][apple ][ Posts: 8,696member
    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.
  • Reply 5 of 99
    stourquestourque Posts: 354member
    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.
  • Reply 6 of 99
    apple ][apple ][ Posts: 8,696member
    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.
  • Reply 7 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!
  • Reply 8 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.
  • Reply 9 of 99
    sdw2001sdw2001 Posts: 17,061member
    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.
  • Reply 10 of 99
    addicted44addicted44 Posts: 822member
    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.
  • Reply 11 of 99
    esoomesoom Posts: 155member
    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.
  • Reply 12 of 99
    nofeernofeer Posts: 2,422member
    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
  • Reply 13 of 99
    Quote:
    Originally Posted by Boogerman2000 View Post


    Baaa! .. MMBAAA! baa MMBAAAA! BAA!



  • Reply 14 of 99
    msuberlymsuberly Posts: 226member
    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.
  • Reply 15 of 99
    chris_cachris_ca Posts: 2,543member
    Quote:
    Originally Posted by Boogerman2000 View Post


    Baaa! .. MMBAAA! baa MMBAAAA! BAA!



    Doing a Scrooge imitation?
  • Reply 16 of 99
    jrangejrange Posts: 1member
    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.
  • Reply 17 of 99
    island hermitisland hermit Posts: 6,217member
    Quote:
    Originally Posted by Chris_CA View Post


    Doing a Scrooge imitation?



    Oh... I thought he was having a stroke...
  • Reply 18 of 99
    takeotakeo Posts: 418member
    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.
  • Reply 19 of 99
    billinbillin Posts: 13member
    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.
  • Reply 20 of 99
    takeotakeo Posts: 418member
    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.
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