Late iPhone X Launch, Overall Expensive Smartphones Among CE Challenges, Best Buy Executives Say
The November launch of the iPhone X put a $100 million dent in Best Buy revenue expectations for Q3 ended Oct. 29, said CEO Hubert Joly on a Thursday earnings call. Natural disasters in Texas, Florida, Puerto Rico and Mexico…
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had an additional impact, he said. Revenue was “materially lower than expected,” Joly said, as a “major new phone” didn’t ship until the retailer’s Q4. That caused “significant softness” in Q3 smartphone sales as customers delayed purchases, he said. Chief Financial Officer Corie Barry said with smartphones costing many hundreds of dollars, and the X selling for $1,000, it's “difficult” for consumers to determine wallet share for electronics within holiday budgets. Early results from Best Buy’s In-Home Advisor program meanwhile are strong, and it's adding staff there, said Joly, saying customer waits are a week.