In a desperate attempt to boost sales of the Apple Inc. (NASDAQ:AAPL) iPad Air 2 and iPad Mini 3 this holiday time of the year, Best Buy has cut down prices of the aforementioned devices by almost $50-$100. Apple iPad has been performing below average as far as its sales figure is concerned and the latest model does not promise anything special as well. Therefore it can be said that Best Buy gave it a much needed push to boost sales.
However, such a big price slash on latest technology is not a good sign for its demand. Best Buy, with its move to cut prices, has hinted at a low demand for both the iPad models. The two new models of the latest iPad devices were well received, initially, by the masses when they both came out in the earlier part of the second half of 2014. Lines of waiting customers were in queue outside Apple Stores all over the United States the night before the launch of the new iPads. But, it did not last long. According to multiple reports, those lines soon diminished to a point when only a handful of people were left in Apple Stores.
This numbers did not dwindle because iPad ran out of stock; on the contrary, it happened because people just went away when it became too inconvenient for them to have the new iPad. With the advent of online stores and more accessibility of the new iPads, potential customers now view convenience above all else.
However, this structure of the market is not good for stores like Best Buy, which run on exclusivity. Best Buy is one of the very few places that is the first to sell the newest Apple products, apart from Apple Store itself. Now, with more and more locations stocking up Apple products, Best Buy is no longer the most viable option if the store is not the most convenient to visit.
This draws back the sales figures of Apple products in Best Buy stores, which once had one of the biggest market share in retail sales of Apple products, especially the iPad. Best Buy saw plummeting sales figure of the iPad Air 2 and iPad mini 3 only recently. The company slashed prices off all Apple products this Black Friday a bit earlier than usual, with prices being cut to over $200 in case of the Apple MacBook. Both iPad models received a price cut of $100 at least, with the pre-Black Friday sale cuts amounting to $75.
According to Best Buy, the price cuts in AApple Inc. (NASDAQ:AAPL) products have resulted in stocks running out. Customers are willing to overlook inconvenience of buying from Best Buy stores if and when they are offered handsome discounts. And with Best Buy’s guarantee of quality Apple products, a discount of any magnitude is sure to result in a massive demand figure, improving the overall sales figure for both Best Buy and especially Apple because the company would be glad to get a decent revenue from its iPads.
