Best Buy Deal Looks Smart For Samsung
Best Buy has announced that it will be opening “Experience Shops” 1,400 of its stores, which led to a 16% increase of the company’s stock. This deal is in collaboration with Samsung with hopes that if customers can play with their devices, they will be more compelled to buy them. Samsung is in dire need of a deal like this because it has no dedicated retail presence the way Apple does. Apple products can be bought at the Apple store, but because Samsung does not have its own retail stores, the company must make deals like this with independent electronic stores. These “Experience Shops” are also planned to provide technical support for the Samsung devices, which would be a major improvement from the current experience Samsung customers have of trusting their devices with independent electronic repair shops. Also, mobile-communications devices are projected to account for 71% of Samsung’s operating profit in 2013, so this adjustment by Samsung has the potential to further the company’s recent success.
This new deal by Samsung shows that the company is taking steps forward to compete with Apple. Samsung’s investment outside of development and marketing shows that it really understands what needs to be done to dethrone Apple.
Written by: Constantine Kostikas
Source: The Wall Street Journal