Apple, Inc. (NASDAQ: AAPL) and Best Buy (NYSE: BBY) announced that they will roll out the Apple stores mini-version in the Best Buy stores. Apple and Best Buy ran a test on 57 of the Best Buy stores with dedicated space for the Apple Mac and other peripherals. Best Buy stopped selling the Mac computers back in 1998 because of low demand and very lackluster profitability.

Apple pulled out of all major retailers and began to build their own retail distribution channels. The success of the system has been stellar. The 173 stores have the highest sales per square foot of any retailer in the world. Apple sells over $4,000 of merchandise per square selling -foot. To leverage this franchise further, Apple and the best electronics retailer ran this 57-Best Buy store test.

Although neither Best Buy nor Apple would comment on the profitability of the venture or the margin split. Best Buy seems happy enough to now roll out the dedicated Apple mini-store -within- the -store to 200 of their units. Currently Apple has a 5% market share of the PC industry thus allowing for room to grow.

Best Buy has been quite negative on Dell and does not recommend Dell computers to their customers. The best sellers at Best Buy are Hewlett Packard Compaq and Gateway. Adding a strong presence of the Apple Mac is creating incremental sales for Best Buy and of course Apple. As far as Wall Street is concerned, analysts have not factored in any additional revenues from the Best Buy channel. How much and to what degree will be calculated after Apple releases its March quarterly numbers on April 26th.

I think it's safe to say, the numbers are not going to go down!!

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