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The Honolulu Advertiser
Posted on: Wednesday, August 13, 2008

Best Buy gets in on iPhone

By Jackie Crosby
McClatchy-Tribune News Service

MINNEAPOLIS — Next month, iPhone fans will have another place to camp out when Apple unveils its newest phone: a Best Buy store.

The retailer is set to announce today that it has signed a deal to be the only retailer outside of Apple and AT&T stores to carry the new iPhone 3G. The phones will be available at all of Best Buy's 965 U.S. stores on Sept. 7.

The iPhone 3G (a reference to third-generation wireless technology) is touted as having faster and more reliable service, with marked improvements in Web browsing. AT&T is the exclusive wireless provider in the U.S.

The timing is good for Best Buy Co. Inc., the nation's largest consumer electronics company. Like many of the nation's retailers, Best Buy's sales have slumped as consumers have pulled back on discretionary purchases in the face of rising costs of food, housing and gas. A boost in September could give the retailer some momentum heading into the vital holiday season.

Best Buy spokesman Jeff Dudash said the retailer has been talking to Apple for years to cut an exclusive deal for the iPhone.

Best Buy and Apple have had a partnership since fall 2006, when Best Buy began testing an Apple store-within-a-store concept at 50 sites. That has now expanded to 600 locations.