Best Buy says Apple iPad 2 units are being held for an 'upcoming promotion'
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.
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.
Comments
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.
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...
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.
"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.
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?
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
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.
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.
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.
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.
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.
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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.
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Would Best Buy management really communicate with their employees via SMS? Is this normal?
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."
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.