$bbtitle
Apple Stock: 199.92 ( -0.59 )
RSS RSS Twitter Twitter
Search:
AppleInsider.com Archives News Bytes Reviews Anonymous Mailer Submit Story AppleInsider Forums Mac Prices Polls Advertise on AppleInsider Contact AppleInsider
Save up to $280 on new MacBook Pros and up to $165 on brand new iMacs with special coupons: Mac Pricing Guide updated Nov 20th (Find the best prices on Macs).
Monday, June 5, 2006

Best Buy may expand Mac pilot program

By Kasper Jade

Published: 02:00 PM EST

Best Buy is prepared to expand a new Mac pilot program to additional retail stores if the concept proves to be successful, a couple of Wall Street analysts say.

The nation's No. 1 consumer electronics chain last week began evaluating a new planogram layout that prominently displays Apple's Mac line in a designated area of its personal computer department.

For the time being, the retailer is testing the program at just seven Best Buy locations in the Southern California region. Some 900+ remaining Best Buy outlets traditionally stock only Apple's iPod digital music players, and to a lesser extent, Mac mini desktop computers.

However, Best Buy has indicated that it is prepared to scale the Mac pilot program "rapidly" if it proves to be a hit, according to Steve Lidberg and David Niederman, two analysts with Pacific Crest Securities. They say a fortified relationship with the electronics retailer will present Apple with the opportunity to bulk up on its domestic retail presence.

According to the analysts, Macs are currently featured in about 650 storefronts throughout the United States. This includes 141 Apple-owned retail stores, as well as 225 Apple store-within-a-store boutiques inside CompUSA locations.

The opportunity to leverage Best Buy's exposure "could prove especially useful if supply-chain issues are worked out in the second half of 2006 and [Apple] is able to supply ample product to meet demand," Lidberg and Niederman say.

Although Apple's Macs are often touted as premium-priced computers aimed at graphics professionals, the analysts believe the recent proliferation of digital media sources amongst home users has raised consumers' expectations for new personal computer systems. And the Mac appears to have the advantage.

"Numerous industry 'shoot-outs' have compared the refreshed Intel-based Macs with their Windows equivalents and found Apple machines to perform equal to or better than competitors with costs roughly equivalent," they said. "A recent comparison of Apple's 17-inch flagship MacBook pro with a similarly equipped Dell XPS M1710 shows that the Dell machine costs $3199, compared with $2799 for the Mac."

Best Buy Apple Planogram
Source: CNet News.com | Best Buy Mac Pilot Photo Gallery


Additionally, the analysts point out that Apple bundles its iLife '06 digital lifestyle suite of applications with each consumer Mac it sells. They estimate third-party Windows equivalents would cost around $360 -- assuming $40 for Catwalk Music Creator (GarageBand), $70 for Microsoft Frontpage (iWeb), $90 for Adobe Photoshop Elements (iPhoto) and $80 each for Pinnacle Studio (iMovie) and Roxio Creator (iDVD).

So far, Apple's digital strategy appears to be working. According to the retailers surveyed by Pacific Crest, an "increasing" number of Windows switchers are migrating to the Mac platform."

These consumers are said to be making the switch for variety of reasons, such as the Mac's dual boot option, improved stability and security. But they also dig the "aesthetic appeal" of Apple's products.

29 Comments ] 
  Print ] [ Story Link ] 


Download Parallels 5.0 Today
RSS
RSS
RSS
Mac Poker players can play Full Tilt Poker for Mac and get 100% to $600 free with bonus code MP600, courtesy of Online Poker Mac
AppleInsider Features
Hot Forum Topics

Recent Articles
Smoking may void Applecare warranty due to "health hazard"
Inside Google's Android and Apple's iPhone OS as software markets
Apple's App Store approval process gets partially automated
TomTom to release iPod touch-specific GPS car kit
China Unicom expects 10% of 3G users on iPhone in 3 years
Steve Jobs e-mails terse response to upset Apple developer
Hack re-enables Atom processor compatibility for Mac OS X 10.6.2
Microsoft shareholders grill CEO about Apple, iPhone
Google outlines Chrome OS plans for netbooks
Sony announces iTunes competitor for music, movies, books
Apple investigates space-age fitness tracking technology
Web search statistics show Bing stagnant, Google growing
New apps said to make iPod touch more prominent in Apple stores
Piper: Apple tablet no more than $700, launch timing irrelevant
Major publisher preps for Apple tablet as delay, OLED rumors surface
AT&T faces setback in legal battle over Verizon ads [u]
TomTom app updated to support iPod touch, first-gen iPhone
Oct. estimates suggest Apple will sell 2.9M Macs this quarter
Microsoft retail store gets odd viral marketing buzz
Rumored 'Google Phone' said to be coming in 2010
Evidence suggests Apple at work on Mac OS X 10.7
iPhone approved in South Korea; China Mobile talks continue
AT&T upgrades network as wireless traffic quadruples over past year
Apple store in upscale Greenwich, Conn., to open Saturday
Needham downgrades Apple stock on technicality
Verizon rumored to embrace Palm in 2010 to combat iPhone
Apple's iPhone App Store takes off in China
Belgian heist lands thousands of stolen Apple iPhones
Verizon responds to AT&T in court: 'The truth hurts'
Apple said to release iPhone app for in-store appointments
OnLive cloud gaming service demonstrated on Apple's iPhone
Apple tablet speculation: high-end graphics, several models
Microsoft looks to combat Apple globally with Zune content
Apple met with AdMob weeks before acquisition by Google
Apple earns key legal victory against Psystar
Apple looks to hire AAA game developer for in-house iPhone team
Apple's next-gen iPhone power amp; NASA chemical sensor app
Bill Gates praises Steve Jobs for saving Apple
AT&T responds to 'false and misleading' Verizon ads
Apple unveils browser-based iTunes Preview

AppleInsider Market Place

Sell your Laptop - working or not. Free shipping.: Get an instant online quote and sell your laptop today !

Believe in Office: Save Up To 25% on Office 2004 For Mac. Visit Our Site for Details!

IBackup - SMB Online Backup: IBackup is the preferred online storage and backup service of choice for SMBs for its ease of use, security and value. Offers automated backup and restore, file selection and securiy.

Download free software - everyday updated freeware files

 
Advertisements








AppleInsider RSS Feed
AppleInsider © 1997-2008
Please review our Privacy Policy.
Written/Edited/Compiled by the AppleInsider Staff.