Best Buy says Apple iPad 2 units are being held for an 'upcoming promotion'

Posted:
in iPad edited January 2014
Best Buy has disputed rumors that the retailer is in a dispute with Apple over iPad sales, and instead claims that it is holding iPad 2 units from sale for an "upcoming promotion."



In response to rumors, Best Buy issued an official statement on Friday to Boy Genius Report, in which the company denied it is in any hot water with Apple. Instead, it said that stock is being held for an upcoming promotion, on which it provided no further details.



"Best Buy continues to receive iPad 2 inventory from Apple on a regular basis," the company said. "As we've said previously, we are fulfilling customer reservations first.



"Our stores have been asked to temporarily hold non-reserved iPad 2 inventory for an upcoming promotion. This is a customary practice for us when there are supply constraints. Best Buy enjoys a great partnership with Apple, and we're delighted by customer response to iPad 2."



This week, rumors began to swirl that Best Buy had caught the ire of Apple over an alleged policy to stop iPad 2 sales once the company met a certain quota for the day. One report claimed that Apple had "blacklisted" Best Buy for the purported practice.



It was also claimed that Apple Chief Operating Officer Tim Cook was personally involved in "negotiations" with Best Buy over the dispute. A separate report said that Apple had "ordered a freeze" on all Best Buy iPad 2 sales.



Best Buy has been a close partner with Apple, debuting Apple-specific boutiques in its stores with the approval of the Mac maker starting in 2008. And last year, when the first-generation iPad went on sale, Best Buy was an exclusive launch partner, while other retailers like Target and Walmart were forced to wait for the right to sell the iPad.
«134

Comments

  • Reply 1 of 65
    Yeah, it'll be called the "stand in line and wait" promotion
  • Reply 2 of 65
    Which do you believe? I don't think Apple would dump Best Buy totally because they are a great outlet for their products. If they stopped supplying the iPads to them then Best Buy might drop Apple in retaliation. I bet people high up in companies have big egos.



    So does that mean that Apple could actually stop supplying iPads to Best Buy? It doesn't matter to me since there aren't any in my city.
  • Reply 3 of 65
    I think that at least half (or more) of the "rumours" or "Report: Apple is doing..." headlines are just made up by bloggers that need to write something so that people will click through to their stories. I visit enough blogs and news sites to be able to watch these rumours just run through all of them, without any of them having any facts.



    Granted most of them are just "informed" guesses, but someone makes an outlandish supposition from some scrap of info and all of a sudden Best Buy is BLACKLISTED by Apple. Then that headline is so juicy that the other blogs pick it up, it's funny really, and sometimes just pathetic. But we keep reading them anyways...



    Now Best Buy says that they are just holding them for a promo, and some sites try to read crazy things into that statement...



    As the old tried and true saying goes: Believe none of what you read, and just half of what you see...
  • Reply 4 of 65
    djintxdjintx Posts: 454member
    This doesn't make much sense to me. So Apple is making iPads as fast as they can to try to satiate incredible demand. Weeks later lines are still persisting and plenty of people still want one. So, Best Buy decides to leave them in the back room because they want to run a promotion? This is ridiculous. If this were true and I was Apple, I would be very pissed that my customers were having to wait and my reputation was suffering because of some promotion.
  • Reply 5 of 65
    bageljoeybageljoey Posts: 1,937member
    Quote:
    Originally Posted by Smallwheels View Post


    Which do you believe? I don't think Apple would dump Best Buy totally because they are a great outlet for their products. If they stopped supplying the iPads to them then Best Buy might drop Apple in retaliation. I bet people high up in companies have big egos.



    So does that mean that Apple could actually stop supplying iPads to Best Buy? It doesn't matter to me since there aren't any in my city.



    Sounds to me like this "oh we are holding them for a promotion" schtick is a negotiated face-saving plan. I don't think anyone could seriously believe they were holding such a hot item to build up stock in the middle of an international shortage. However, both have too much to lose if the relationship blows up, so Cook talked to their guy and now they will come up with some way (some promotion) of making this go away.
  • Reply 6 of 65
    mastericmasteric Posts: 89member
    Quote:
    Originally Posted by AppleInsider View Post


    "Our stores have been asked to temporarily hold non-reserved iPad 2 inventory for an upcoming promotion. This is a customary practice for us when there are supply constraints. Best Buy enjoys a great partnership with Apple, and we're delighted by customer response to iPad 2."



    Pardon me as I cry BS on this. Why would you hold merchandise for a promotion when there is no reason to promote it? If you have a product that you can sell then you sell it! You don't wait for other stores to get their inventory in stock. If people want an item they will find someone who is selling it and buy from them. Telling the customer you don't have it so you can run a promotion for the product down the line? No way!



    Best Buy is trying to save face with that story. Good luck.
  • Reply 7 of 65
    hittrj01hittrj01 Posts: 753member
    Quote:
    Originally Posted by Bageljoey View Post


    Sounds to me like this "oh we are holding them for a promotion" schtick is a negotiated face-saving plan. I don't think anyone could seriously believe they were holding such a hot item to build up stock in the middle of an international shortage. However, both have too much to lose if the relationship blows up, so Cook talked to their guy and now they will come up with some way (some promotion) of making this go away.



    You'd be surprised. I work for Best Buy, and this is a very common practice. Best Buy will put a product in an ad (ads are usually made out a month or so in advance), and hold a specific amount of product for that ad. Think about it. If a store puts out an ad promoting a product, you walk in to said store wanting said product right when the store opens on day 1 of the ad, and that store didn't have anything to sell you, how much sense would that make?
  • Reply 8 of 65
    nkalunkalu Posts: 315member
    What promotion? Shame on you BestBuy.
  • Reply 9 of 65
    dishdish Posts: 64member
    that sounds like utter bull shit! the iPad is probably The very last product on the market that needs any kind of promotional sales program. This is one of the reasons I don't shop at Bestbuy, they don't give a rats ass about the consumer, all they care about is making sure the blue shirts push the accessories with every purchase.
  • Reply 10 of 65
    Quote:
    Originally Posted by nkalu View Post


    What promotion? Shame on you BestBuy.



    They Did this last year. Likely, BBY will advertise it a run a big promotion in their Sunday flyer in attempt to drive foot traffic in the stores.



    I saw an internal document last year where BBY was instructed stores to hold shipments for enough supply for their big advertising run.



    Still doesn't mean Apple might not be happy or that some stores might have been holding stock they could have sold saving to meet budget the next day
  • Reply 11 of 65
    dimmokdimmok Posts: 359member
    Best Buy....your fired.
  • Reply 12 of 65
    gtbuzzgtbuzz Posts: 129member
    Best Buy is not known for making truthful comments. Their sales staff is lacking in technical knowledge. It is a pain in the Butt to have to deal with them. They have never promoted Apple products in the past and are known by their past actions.



    You just cannot believe what they say. I do my best to not purchase anything from them when possible. If you tell the sales person you are just looking and you will call them if you need them, that is what you mean. Instead, half the sales people in the store keep asking you the same thing. Sometimes the same person asks you more than once. They are robots ... period.



    Best Buy promoting Apple Products, I seriously doubt it.
  • Reply 13 of 65
    walshbjwalshbj Posts: 864member
    How much does Best Buy net on an iPad sale? They're probably pretty desperate to add on accessories any way they can. Are they selling extended warranties on iPads?? Are extended warranties still a huge slices of their profits? It seems like they'd have to be.
  • Reply 14 of 65
    jd_in_sbjd_in_sb Posts: 1,600member
    Quote:
    Originally Posted by Bageljoey View Post


    Sounds to me like this "oh we are holding them for a promotion" schtick is a negotiated face-saving plan. I don't think anyone could seriously believe they were holding such a hot item to build up stock in the middle of an international shortage. However, both have too much to lose if the relationship blows up, so Cook talked to their guy and now they will come up with some way (some promotion) of making this go away.



    Agreed.
  • Reply 15 of 65
    robin huberrobin huber Posts: 3,478member
    Quote:
    Originally Posted by hittrj01 View Post


    You'd be surprised. I work for Best Buy, and this is a very common practice. Best Buy will put a product in an ad (ads are usually made out a month or so in advance), and hold a specific amount of product for that ad. Think about it. If a store puts out an ad promoting a product, you walk in to said store wanting said product right when the store opens on day 1 of the ad, and that store didn't have anything to sell you, how much sense would that make?



    What you say may be true, but these are not commodity items like thumb drives that can be advertised as loss leaders and priced however Best Buy wants. Apple will not allow them to be discounted, so what kind of "promotion" are you thinking of? A promotion that says: "iPads are now available at BestBuy; come and get 'em!" People already know that, so why pass up sure sales for that? "Buy an iMac and get an iPad 2 free"? I doubt it.
  • Reply 16 of 65
    mstonemstone Posts: 11,510member
    Quote:
    Originally Posted by hittrj01 View Post


    You'd be surprised. I work for Best Buy, and this is a very common practice. Best Buy will put a product in an ad (ads are usually made out a month or so in advance), and hold a specific amount of product for that ad. Think about it. If a store puts out an ad promoting a product, you walk in to said store wanting said product right when the store opens on day 1 of the ad, and that store didn't have anything to sell you, how much sense would that make?





    Like the iPad needs promoting? You can't even buy one if you wanted to. The only promotion they could offer is get 50% off a 3rd party cover/case with purchase of iPad because iPad price is controlled by Apple.
  • Reply 17 of 65
    Quote:
    Originally Posted by Robin Huber View Post


    What you say may be true, but these are not commodity items like thumb drives that can be advertised as loss leaders and priced however Best Buy wants. Apple will not allow them to be discounted, so what kind of "promotion" are you thinking of? A promotion that says: "iPads are now available at BestBuy; come and get 'em!" People already know that, so why pass up sure sales for that? "Buy an iMac and get an iPad 2 free"? I doubt it.



    How about using a 'wait-and-see' approach? It's totally possible (and likely) that they'd do something like a bundled deal with a case/cover or gift-card. Now I understand a lot of you guys don't believe BB and that's fine it's just that the facts are not out yet and I personally just don't think there' any need to jump the gun.
  • Reply 18 of 65
    ddawson100ddawson100 Posts: 479member
    This rumor is a little late. April Fools Day was last week. I'm skeptical about the BGR story, too:



    [clip]

    The communication, which is claimed by our source to have been delivered by Best Buy management via SMS, instructs employees to hold all iPad inventory except for pre-orders.

    [/clip]



    Would Best Buy management really communicate with their employees via SMS? Is this normal?
  • Reply 19 of 65
    Quote:
    Originally Posted by Turley Muller View Post


    They Did this last year. Likely, BBY will advertise it a run a big promotion in their Sunday flyer in attempt to drive foot traffic in the stores.



    I saw an internal document last year where BBY was instructed stores to hold shipments for enough supply for their big advertising run.



    Still doesn't mean Apple might not be happy or that some stores might have been holding stock they could have sold saving to meet budget the next day



    It should be called "first come, last served."
  • Reply 20 of 65
    quinneyquinney Posts: 2,528member
    Quote:
    Originally Posted by mstone View Post


    Like the iPad needs promoting? You can't even buy one if you wanted to. The only promotion they could offer is get 50% off a 3rd party cover/case with purchase of iPad because iPad price is controlled by Apple.



    You have it. They could be waiting for shipments of accessories to push, rather than just selling the iPads naked.
Sign In or Register to comment.