GameStop (GME) to Join the Party: Sources Say Retailer Might Begin Selling Apple (AAPL) Devices
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Price: $18.21 +0.94%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 13.9%
EPS Growth %: -24.0%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 13.9%
EPS Growth %: -24.0%
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GameStop (NYSE: GME) shares are decidedly lower Tuesday following reports the video game hardware and software retailer might begin a strategic partnership with Apple (Nasdaq: AAPL).
Though not officially confirmed by either party, several sources on the web are rumoring GameStop will begin offering Apple's entire product suite, from iPhones to iPads, in stores nationwide. One source said the announcement was made at a trade show in Las Vegas last week.
This week, GameStop has begun accepting iOS-based devices as trade-ins for store credits. This could mean GameStop will test out sales of refurbs before moving to sell new Apple devices, a much more costly undertaking should GameStop not fare well. Apple is expected to launch its next iPhone (lovingly referred to as "5" by the media) sometime in October, with a new iPad expected to debut in 2012.
The news is obviously bullish for Apple. Having sold 20.34 million iPhones globally last quarter, a new distribution channel will certainly boost that number as more and more consumers look to adopt the device.
With the iPhone 5 out soon, and Sprint (NYSE: S) a possible new partner for the device, some might argue Apple is diluting its brand. But since the iPhone was brought to Verizon's (NYSE: VZ) network last January, sales have never been stronger, and sentiment has never been better.
Shares of GameStop are down nearly 2 percent in pre-market action Tuesday morning.
Though not officially confirmed by either party, several sources on the web are rumoring GameStop will begin offering Apple's entire product suite, from iPhones to iPads, in stores nationwide. One source said the announcement was made at a trade show in Las Vegas last week.
This week, GameStop has begun accepting iOS-based devices as trade-ins for store credits. This could mean GameStop will test out sales of refurbs before moving to sell new Apple devices, a much more costly undertaking should GameStop not fare well. Apple is expected to launch its next iPhone (lovingly referred to as "5" by the media) sometime in October, with a new iPad expected to debut in 2012.
The news is obviously bullish for Apple. Having sold 20.34 million iPhones globally last quarter, a new distribution channel will certainly boost that number as more and more consumers look to adopt the device.
With the iPhone 5 out soon, and Sprint (NYSE: S) a possible new partner for the device, some might argue Apple is diluting its brand. But since the iPhone was brought to Verizon's (NYSE: VZ) network last January, sales have never been stronger, and sentiment has never been better.
Shares of GameStop are down nearly 2 percent in pre-market action Tuesday morning.
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