- Piper Jaffray comments on Apple (NASDAQ:AAPL) after Best Buy announced that it will be expanding the Mac pilot program to ~200 stores by fall 2007, up from 57 stores today.
Firm believes Apple's store within a store at Best Buy will be much differen compared to the current pilot store rollout, which was a table with Apple products on it. The difference is they expect some (smaller number) of these 200 stores will have walled-off Apple stores, while others will have improved layouts. What is clear, you won't wander around Best Buy to shop for Apple. A good way to think about Apple & Best Buy is the Coach or Chanel store within a store concept at Nordstrom.
While Best Buy accounts for only a 2% increase Mac distribution, they estimate the volume of visitors through Best Buy equates to about a 10% increase in Mac distribution points.
Maintains Outperform and $124 tgt on AAPL.
Notablecalls: Not actionable but good to know category.
Firm believes Apple's store within a store at Best Buy will be much differen compared to the current pilot store rollout, which was a table with Apple products on it. The difference is they expect some (smaller number) of these 200 stores will have walled-off Apple stores, while others will have improved layouts. What is clear, you won't wander around Best Buy to shop for Apple. A good way to think about Apple & Best Buy is the Coach or Chanel store within a store concept at Nordstrom.
While Best Buy accounts for only a 2% increase Mac distribution, they estimate the volume of visitors through Best Buy equates to about a 10% increase in Mac distribution points.
Maintains Outperform and $124 tgt on AAPL.
Notablecalls: Not actionable but good to know category.
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