Best Buy has been struggling for a while, according to Time, but Apple Inc’s iPhone 6 may have just given the store another chance at survival. The store that seemed to be doomed has been seemingly revived by the iPhone and the success of it.
Time said many analysts have concluded that the retail store is destined for failure and eventually destruction. Somehow Best Buy keeps managing to survive and continues to attract shoppers. In today’s world, the article added, people can easily buy the electronics they need online but Best Buy has maintained its appeal with shoppers and they keep coming back.
Best Buy reported recently that sales have went up 0.6 percent. Wall Street predicted a decline but instead numbers rose. There was definitely a larger than expected profit according to CNN Money. The store has in the past benefited from popular products. Over the years strong products and big sellers have helped to keep Best Buy afloat. The iPhone 6, which came out last year, is currently a huge seller and money maker. Samsung’s Galaxy 6 is also extremely popular, but the iPhone is the one that is truly reviving the store.
The retail store has been making every effort to push forward despite the skeptics. It focuses on the top electronic brands and showcasing them. Best Buy aims at giving products like the iPhone 6 prominence within all of its stores. 2014 saw the store creating and opening up showrooms to showcase Samsung and Sony products. The retail store’s efforts to get people to take extra notice of these products has helped the store to survive. Apple Inc’s product is a huge seller and it has definitely played a major role in aiding the store.
The Business Insider said Best Buy reported that the earnings per share were 37 cents, which was higher than what analysts had predicted. The store beat the predictions for earnings and revenue as well. The company stated that there was a revenue of $8.56 billion. Analysts had predicted a revenue of only $8.46 billion. The store proved skeptics wrong and made great progress. Many retail stores have reported that sales were disappointing for the quarter, but Best Buy was not among them. Typically sales are not great in the first quarter of the year according to CNN Money. People are less likely to spend money on electronics right after the holiday, especially considering so much money is spent on these items around Christmas time.
The CNN article said that the retailer is doing well in terms of electronics and appliances as well. The store has been doing well for not just one but several quarters, according to CEO Hubert Joly. He said that the store is up there with Home Depot, Lowe’s, and Sear’s in terms of major growth. The company has faced extreme competition in the past from Walmart and Amazon but things are changing now. Since Joly took over, the company has made a lot of progress. He has cut costs and invested in the company’s online business which is essential considering how big that market is right now. The stock has also went up since Joly became CEO. In 2012, the shares went up to 235 percent.
Joly said in the CNN Money article that he feels like his company is a winner now after so much struggle. The store was once down but it is on the rise again. Best Buy can definitely thank Apple Inc’s iPhone for its success. The phone has helped to revive the store and its appeal with people can only continue to help Best Buy move ahead. The store really has another chance at survival because of the Apple Inc’s iPhone.
By Heather Granruth
Time: How Apple Just Saved Best Buy
CNN Money: Best Buy surges. It should thank Apple
The Business Insider: Best Buy is Surging After an Earnings Beat
Photo Courtesy of Mike Mozart’s Flickr Page- Creative Commons License
Photo Courtesy of Karlis Dambrans’ Flickr Page- Creative Commons License