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How Big Of A Threat Is Amazon's Installation Service To Best Buy's Geek Squad?

James Brumley profile picture
James Brumley


  • The e-commerce giant now sends technicians to set up smart homes.
  • Best Buy, however, already has an established presence all over the country.
  • Amazon won't up-end Geek Squad anytime soon, as Amazon's scope is limited.

There's no denying the addition of its Geek Squad back in 2002 helped keep electronics retailer Best Buy (NYSE:BBY) a little more relevant than it had a right to be in the shadow of now-bigger rival Amazon.com (AMZN). Even so, with most consumers now more than self-sufficient when it comes to their technology and a myriad of installation options available, some observers have been questioning the value of Best Buy's in-house tech gurus.

As it turns out though, the guys and gals driving the orange and white vehicles around your neighborhood may be more relevant in the future than you think. How do you know? Because, unfortunately for fans of Best Buy's turnaround effort, Amazon is getting into the home-technology installation business. Recode reported today the e-commerce giant has launched smart-home installation services in seven different markets, with presumably more on the way.

Maybe it's not a deteriorating business after all.

Amazon's move does beg the question though... how much money is there in the tech-installation business. The answer is, more than you might think.

Look Out Geek Squad?

If it's news to you, don't worry about it. Amazon started the unit in low-key fashion, and had remained rather quiet about it.

That may not be the case for much longer though, with want-ads for qualified technicians recently popping up in another seven markets in addition to the seven already up and running. The company seems to have the initial startup kinks worked out.

As for what's exactly at stake in terms of revenue, nobody really knows for sure. Best Buy doesn't divulge the details of how big its Geek Squad business is. There are some good educated guesses floating around on the web though. Some have opined the arm drives about $2 billion worth of sales per year, while others

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James Brumley profile picture
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