Best Buy’s strong quarter means more aggressive holiday discounts on laptops, tablets, TVs, and gaming gear, especially in “upgrade” categories
The real savings are in solid markdowns and open-box/clearance items; tiny discounts on outdated models are usually not worth it
Protect your wallet by skipping unnecessary add-ons, using price matching against Amazon/Walmart, and leaning on your credit card’s built-in protections instead of extra warranties
Best Buy just gave shoppers a pretty big hint about this holiday season: people are still spending on tech, as long as it’s on sale.
Last week the electronics giant raised its annual sales and profit forecast after a stronger-than-expected quarter powered by discounted laptops, smartphones, tablets, and gaming gear.
Best Buy had comparable sales growth of 2.7% last quarter, easily beating Wall Street expectations and marking the retailer’s best same-store growth in four years.
What’s driving the tech comeback?
A few clear patterns are popping up in Best Buy’s numbers:
- Laptops and tablets are back. Computers and tablets make up roughly a third of Best Buy’s revenue, and they saw “robust” growth in the category. This was mainly from shoppers upgrading machines bought early in the pandemic or finally replacing old devices.
- Gaming is hot again. Demand for gaming systems got a big boost from Nintendo’s Switch 2. That and a continued interest in handheld gaming devices and their accessories.
- Deals are doing the heavy lifting. Best Buy credited steep discounts as the main reason they were able to pull shoppers in. So while consumers are clearly more cautious, they’re willing to spend their cash when the price is right.
Why this matters for shoppers
Best Buy’s positive outlook stands in contrast to some other big-box retailers.
Specifically, recent earnings from Walmart, Target, and Home Depot showed a more mixed picture, with customers focusing more on essentials, trading down, and putting off their big home improvement projects.
The split we see between Best Buy and other big-box retailers tells us a lot about how consumers are spending their money right now:
- Shoppers are still delaying some “nice-to-have” purchases and focusing more on needs vs. wants.
- But they will spend on tech that feels necessary. Think things like a new laptop for work or school, or a new TV that delivers a lot of entertainment value at home.
- Retailers that put real discounts in front of those needs, like Best Buy is doing, are the ones seeing the best results.
How to use this news to your advantage
If you’re planning a tech purchase in the next few weeks leading up to Christmas, Best Buy’s raised forecast actually gives shoppers a bit of a roadmap.
The fact that they highlighted the importance of deal-driven demand means there are real discounts to be had. But like always, you’ll still need to shop smart.
Here are a few practical tips:
- Shop the “upgrade” categories. Products where Best Buy is seeing the most action include things like laptops, tablets, and gaming gear. All stuff that shoppers are upgrading to better models when the price is right. If these are on your list anyway, this is a good time to buy, as long as you compare specs and avoid overbuying just because it’s a “deal.”
- Watch for “good, not great” promos. A 10% or 15% markdown on older tech isn’t always a deal if the specs are two or three generations behind. Use comparison tools and check original list prices; don’t rely on a crossed-out list prices on the product page.
- Leverage open-box and clearance. With demand picking up, expect more open-box returns to cycle through stores and the website. These can run 15%–50% off, depending on condition. Look for clear condition ratings, original accessories, and a return window.
- Be wary of add-ons. Add-ons like protection plans, accessories, and installation costs can easily erase whatever money you saved on the “deal.” So, before you say yes to Geek Squad or an extended warranty, check whether your credit card already offers extended protection and consider whether you really need extras like paid setup.
- Check price matching. Don’t forget that Best Buy will price match major competitors like Amazon and Walmart as long as the item is identical. If you see a better price elsewhere, it’s always worth asking an employee about a match. This is especially true on more expensive tech items as a few minutes of your time can save you significant money.