Best Buy says expensive smartphone sales are holding up ahead of the next iPhone launch

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Aug 30 (Reuters) – Consumers stung by decades-long high inflation are not turning to cheaper smartphones, Best Buy Co Inc (BBY.N) said on Tuesday, boding well for Apple Inc’s upcoming iPhones (AAPL.O) likely to be unveiled next week.

The comments from America’s largest consumer electronics retailer come at a time when soaring gas and grocery prices have led to a cut in non-essential spending.

Best Buy chief executive Corie Barry said consumers are turning to cheaper alternatives in categories such as TVs, but demand for expensive smartphones remains strong.

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“There are other categories, like cellphones, where it’s not so much about deciding whether to go up or down. You want a certain brand and you want a certain type of phone,” Barry said.

Last week, JP Morgan analysts raised concerns about enthusiasm for new iPhones, citing consumer expectations for higher prices and limited new features.

Best Buy also said on Tuesday that cost-conscious shoppers may delay holiday season shopping at the last minute this year in search of the best deals. Read more

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Reporting by Uday Sampath and Mehr Bedi in Bengaluru; Editing by Aditya Soni

Our standards: The Thomson Reuters Trust Principles.

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