New Apple iPhone Faces Overexposure

Apple Inc. (NASDAQ: AAPL) will sell its new iPhone in its own retail stores and in Walmart (NYSE: WMT). The should allow the handset and consumer electronics company will have the iPhone available nearly everywhere, including online.

Now Best Buy (NYSE: BBY) says it will start to take pre-orders for the new iPhone. Tomorrow, Best Buy Mobile, the mobile specialty retail unit of Best Buy Co. Inc , launches its pre-sale of iPhone 4 from Apple. Pre-sale orders can be placed at any Best Buy or Best Buy Mobile standalone store nationwide. The iPhone 4 will land in Best Buy and Best Buy Mobile stores June 24

The trouble Apple may face is that the customer service, customer support, and online experience offered by other retailers may be nowhere nearly as good as Apple’s is.Apple prides itself on the strength of its retail stores and training of its retail staff. Walmart electronics sales people are likely to be much more ham-handed. Even Best Buy mixes Apple products like the Mac in amongst other PC and floor personnel cannot be well-trained in all of the machines.

Apple has already injured its reputation by pairing with AT&T Inc (NYSE: T) as its provider of 3G service. Why it would compound that by dealing with other companies which could damage its relationships with customers is a mystery. Selling more handsets faster is not necessarily as good as selling them slightly more slowly, but selling them well.

Douglas A. McIntyre