Best Buy Believes 4K Ultra HD TV is the Future of its Business
by Stephan Jukic – October 1st, 2014
The major electronics retailer Best Buy is showing that it strongly believes 4K Ultra High Definition to be a major part of its future business revenues. The company has recently told Investment firm Goldman Sachs that Ultra HD TVs specifically will be a “decisive product” for the industry and that they believe them to be a crucial booster for the company’s sales.
More specifically, Best Buy Chief Financial Officer Sharon McCollam told Sachs that the new TV technology would “be a decisive product for the franchise”. These were comments made by McCollam at Goldman Sachs’ Annual Global Retailing Conference.
The new resolution format, which, at display parameters of 3840 x 2160 pixels, offers nearly five times more pixel density and quantity than conventional Full HD and 4K TVs from virtually all of the major and even minor electronics brands are also built as massively powerful Smart TV platforms that include intelligent interfaces, internet connectivity and large amounts of access to streaming music, TV shows, movies and other programming.
Best Buy itself is also putting its money where its mouth is by entering into major partnerships with several of the key manufacturers of 4K TVs that are aimed at promoting the new technology and encouraging curious consumers to visit Best Buy stores throughout major cities in the U.S for the sake of seeing and experiencing the TVs and resolution for themselves.
The promotions include interactive displays staffed by Best Buy staff and external promotion done by both the retailer and its TV manufacturer partners who will benefit in turn from increases turnover of their products in the retailer’s stores.
Currently, the average cost of most 4K Ultra HD TVs by Best Buy’s partners Sony, Samsung and LG sits between $3,000 and $10,000 USD but these prices are still dropping at a steady rate and many new competitors have entered the market with cheaper but also feature packed alternative models.
A notable recent example of this was the unveiling of Vizio’s new P-Series line of UHD TVs with screen sizes ranging from 55 to 77 inches. The new Vizio sets contain all the same connectivity features of those sold by Best Buy’s partner manufacturers but cost less than $2500 even at their most expensive.
On the other hand, some of the latest and largest 4K TVs such as the new, highly advanced OLED sets from LG, retail for prices above $20,000 USD.
On amazon.com, the majority of user reviews for the 4K TVs sold by Best Buy’s partners have been overwhelmingly positive and many reviewers literally exclaim about how their jaws dropped the first time they actually saw 4K resolution in action on a large screen.
This could indeed be a major boost for the retailer given that its overall sales figures and store traffic levels are declining. In the previous complete quarter of 2014 alone, Best Buy saw a sales dip of 2.7% and this number is part of a considerably wider slowdown for the company.
The higher margins afforded by 4K TV sets might offer a reversal of these slumping sales figures, but only if the company and its partners can convince enough people to actually buy the remarkable but still pricey TVs.
Story by 4k.com