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Stephen Rosenman
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I enjoy analyzing the financial health of companies and pointing out areas the market is either not recognizing or ignoring. A long time investor, I put my money where my mouth is. That's why I'm passionate about my positions. I trumpet companies I believe in and back my articles up with data... More
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Stephen Rosenman
  • Best Buy's iPhone Lament 0 comments
    Sep 14, 2010 8:57 PM
         BBY beat street earnings consensus and raised guidance. 

         Not all was roses. The company lamented about limited availability of the iPad at its stores.  In fact, BBY singled out very limited iPad supply as being responsible for market share weakness:
        "The decline was primarily driven by the impact of lost traffic associated with constrained inventory during the initial iPad lauch which adversely impacted traditional mobile computing traffic".  
        In other words, the lack of iPad supply kept customers away from BBY stores.  They weren't buying netbooks.  Mobile computing wasn't as strong.  Shoppers were waiting for the "magical device".  I can almost hear the CEO sighing: "If only I'd had a million more iPad..."
       (I know.  I was one of those who walked out of BBY due to the unavailability of the iPad.)  
       Startling that even with the iPad limited supply, BBY noted:  "tablets in particular were very strong for us".  BBY could have sold a ton of iPads if supply was there.
        BBY just announced that it will roll out the iPhone to all of its 1,093 U.S. stores (www.bby.com/2010/09/14/best-buy-expands-.../) on September 26.  That's up from the current 673 stores.  They made the announcement the same day they reported earnings.  BBY is telling us that the product will be strong and implies inventory problems are solved.  
       This is another sign of the incredible future for the iPad and, therefore, AAPL's earnings.
       



    Disclosure: Long AAPL
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