Manufacturers/suppliers pay merchandising allowances and cooperative advertising fees to get ads like that in Best Buy's circular. Same goes for the products you see in Walgreens or Kmart ads, etc.
Ever notice how one week Best Buy has all HP computers and another week all Toshiba computers? Or one week all the tv's will be Sony? You can tell which supplier paid for the ad space...and with that they get their product featured...and usually no competitor's product (in that particular category) is in the same ad.
That is part of the cost of doing business and getting shelf space in the Best Buy stores, etc. Apple does not have to pay the staff in the store or the utilities, etc., so they pay the merchandising fees to be there. How much Apple pays to be in Best Buy and how frequently they are advertised was part of the negotiation to be in Best Buy. L
Getting the extra exposure in 300 Best Buys is worth it, though. It adds selling capacity to what appears to be a fairly stretched set of Apple owned stores--the store reports on this board sound like the stores are selling at capacity many days/week. :)
Looking forward to reading some Best Buy -Apple section- store reports as the holidays approach.
BTW, Best Buy's next earnings report is Dec. 18, and that will give us a glimpse into how well sales are going through November... while Apple products may not be specifically mentioned, look for comments about demand for premium laptops, smart phones, etc.
That's what i've been saying- new costs associated with introducing new products to market will hurt earnings for this quarter. Obviously apple wouldnt spend money on such things as this and dropping the price of the IPhone unless sales are not what they want.
This is a best buy expense. Besides, you think marketing costs will really affect this quarter? Apple spends much less than rivals on marketing if you did not know. Most is word of mouth, and hype. The cheapest and least expensive marketing around.
Go visit your local Best Buy, Comp Usa, etc(Its worth the time, trust me). See what the sales associates say about Apple products, and sales. If you have an Apple store around you, goo!!!!!! This will show how hot Apple is, and I think will be in the next few years. I bypass all the BS from analysts, CNBC, Cramer, and do my own research. Been trading Apple 3 + years now, and I have not seen a more exciting time for Apple and investors.
This is just an honest analysis from an Apple shareholder/trader.
To all, do the above, do not listen to the so called experts that manipulate the stock, and you will be rewarded. Learn to play the big boys game, and you can benefit. To me should be illegal a lot of manipulation going on, but seems the SEC turns a blind eye. oops, getting into another subject.
This week we will break 180 leading to earnings. Luck to all
They already guided higher expense in relation to production transition in their last earning conference call.
Every single Wall Street analyst knows this. It's all factored in the stock price the last three months.
There is no unknown here. Sales meet expectation and expense is well planned in advance and is not an issue.
LOL, that is why BestBuy has been bragging about how well Apple sales are and are increasingly dedicating more and more floor space to Apple products. Obviously to shorties, this somehow indicates weakness.
I think this is a Best Buy expense/decision, isn't it?
It's the Best Buy insert and they chose to put the ipods on the cover. Seems to me this would indicate a dispraportionate amount of revenue is coming from the Apple sections and/or they are using the ipods to get people into their stores.
Guess I looked at it as a good thing - but I see your point, kind of.