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Best Buy welcomes new CEO Dunn, the prince of 'connectivity'

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Last week, Best Buy Inc. (NYSE: BBY) CEO Brad Anderson ceded the throne to 24-year Best Buy vet Brian Dunn, who took over as CEO. Dunn, who started with the largest consumer electronics chain in the U.S. by belting out the theme to Miami Vice to amp up home theater sales in the 1980s, has stated that he wants to "connect" every consumer that steps inside Best Buy's doors. That is, make sure wireless phones, PCs, and home theater become the chain's biggest opportunities. In other words, take advantage of the "three screens of opportunity."

Wireless is a given. The category continues to grow -- even in a recession -- as more and more consumers trade in those freebie cheap phones for BlackBerries and iPhones. The Best Buy Mobile concept should be a successful one for the retailer in the near future. PCs, though? It's hard to imagine an "opportunity" exists in the personal computer segment unless Best Buy can somehow move consumers away from the no-margin laptops (and dwindling desktops of course) into higher-margin PCs. Do you see that trend working? I don't. Even a base-level PC is more than enough for the average consumer these days.

Home theater is another intriguing screen that could prove hard to grow at some frenetic pace as Dunn describes. Flat panel televisions are the norm now, from the small bedroom set to the living room big screen. Manufacturers can push anything they want to grow sales (120Hz, 240Hz, etc.), but the only breakthrough feature that will grow home theater will consist of direct-to-television content-on-demand and browser-enabled television sets that will take the living room internet surfing from the laptop screen to the large and pretty television screen. But wait -- that could take sales from the PC category!

We'll see what Dunn does with the three screens. The one screen, though, that holds the most promise is the mobile screen. The other two screens may get window dressing from time to time, but both don't hold near as much promise as the do-everything availability of the always-with-you wireless handset. That's Dunn charge.

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Last updated: November 25, 2009: 09:28 PM

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