This isn’t the first time Apple shook Best Buy. A little over a year ago the electronics retailer blamed a $100 million third-quarter revenue shortfall on the late introduction of the Apple iPhone X.
At the time it was anticipated that the deficit would be made up in the next quarter, so investors shrugged it off. But UBS analysts warned in their note this week that Apple’s sales woes and new retail partnerships present longer-term risks for Best Buy. “Expanded distribution means that it will be harder for [Best Buy] to sustain its share gains,” they wrote, comparing the situation to Dick’s Sporting Goods’ losses after Under Armour inked a deal with Kohl’s. “Apple’s moves might not be as draconian for Best Buy. But, they do illustrate the risk.”