Earlier today, Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) announced its plans to open a number of “Samsung Experience” kiosks throughout Best Buy Co., Inc. (NYSE:BBY) stores beginning this month and continuing these openings through the early months of summer. While Best Buy’s shares soared on the news, it’s difficult to believe that Apple Inc. (NASDAQ:AAPL) employees nor investors are terribly worried about Samsung’s plans.
Apple Inc. (NASDAQ:AAPL) is a monster with a huge following of their faithful willing to drop everything to embrace the newest version of whatever they put on offer. While this could certainly change it’s not going to happen based on the release of a few new Samsung products.
Tiger Legatus Master Fund was up 0.1% net for the second quarter, compared to the MSCI World Index's 7.9% return and the S&P 500's 8.5% gain. For the first half of the year, Tiger Legatus is up 9%, while the MSCI World Index has gained 13.3%, and the S&P has returned 15.3%. Q2 2021 hedge Read More
There are a number of other reasons that Apple Inc. (NASDAQ:AAPL) will be just fine:
Even with specifically trained salespeople, “Samsung Experience” employees won’t be able to hold a candle to those who work in the Genius Bar. The level of knowledge they possess and display makes it a marvel of tech support. I’ve found myself just watching and listening to them on occasion. How many customer service departments can make that claim?
The Apple Store has become a destination location. You can read all the reviews you want about the “retina display” for example but until you see it, you won’t believe it. There is something to be said for the design of Apple’s products and the layout of their stores which provide shoppers a portal into both the present and the future with simple aesthetics. Given that the majority of “Samsung Experience” locations will be housed in a few evacuated rows of CDs, there is no danger of feeling the same way amongst a dead medium.
Best Buy Co., Inc. (NYSE:BBY), simply, doesn’t inspire confidence. They have a tarnished reputation and the other products they sell will have a negative effect on those that peddle their wares there with the exception of Apple Inc. (NASDAQ:AAPL).
Warranty issues will not be addressed in the “Samsung Experience” boutiques, nor will tech support. Hardly a Genius Bar that might find me making an impulse purchase of a mini-iPad for my son.