Best Buy Ends Samsung Phone Repair Service: What Happened?

Best Buy's Geek Squad is ending its Samsung Authorized Service Provider (ASP) program, which allows retailers to repair Samsung phones with real parts, equipment, and training. This decision follows Samsung's repair shop contract disputes and a failed iFixit contract renegotiation.

The Geek Squad subreddit users confirmed the closure. A Geek Squad employee posted an internal screenshot stating that "Samsung ASP is ending in all SASP locations" and telling staff to prepare for part returns, per The Verge.

Moving Forward

Samsung and Best Buy did not deny the end of the ASP. Samsung mobile customer service head Mario Renato de Castro said that the two companies are "in discussions" to determine the strategy to support customers "moving forward."

Best Buy spokesperson Katie Klister said they are evaluating mobile customer support with Samsung.

Everyone had previously been able to arrange Samsung repairs at Best Buy. Now, Best Buy locations will only repair phones if the client gets Geek Squad Cell Phone Complete Protection insurance, which may have a cost.

Despite the winddown, Best Buy and Samsung remain tight. During a recent earnings call, Best Buy CEO Corie Barry announced a collaboration with Samsung for skilled appliance labor in hundreds of locations. Barry also announced "further efficiencies" in supply chain and Geek Squad repairs, preparing staff for layoffs.

Best Buy no longer offers Samsung repairs on their website. Now, it only offers iPhone repairs, per 9to5Google. Samsung continues to offer official repairs at uBreakiFix, but Best Buy's loss as a service provider is important because of its broad and handy US locations.

Best Buy Benefits From AI Boom

Best Buy's shares have climbed 21% after its previous earnings due to investor interest in AI-integrated laptops. The store, which has one-third of the US computer market, is seeing more interest in its latest items.

At an investor call last week, Best Buy officials touted advancements in their latest laptop selection, bolstering investor confidence, The Wall Street Journal reported. Laptops make up 20% to 25% of Best Buy's revenue, per Citi Research. Citi raised Best Buy's stock from "sell" to "buy," lifting its target price from $67 to $100, citing upward laptop sales and the innovation cycle.

Best Buy offers 40 new laptops, 40% unique, from Microsoft, Dell, HP, Lenovo, and Samsung. These laptops have Microsoft's AI-powered Copilot+ technology. Best Buy will sell the new laptops on June 18.

Other intriguing product introductions include Apple's AI-equipped iPads, Bose's open-ear headphones, and Sonos's premiere headphones. Best Buy expects these new goods to improve customer interest and average purchase prices this back-to-school season.

Corie Barry, Best Buy CEO, said new iPads are selling well and improving sales this quarter. Pre-orders for Copilot+ computers are ahead of forecasts.

It's unclear if inflation-affected consumers would pay over $1,000 for laptops with online artificial intelligence features. The main selling point is that these laptops process quicker and more securely without cloud storage.

Best Buy had strong growth during the COVID pandemic as people renovated their home offices, but its core US business has declined for ten straight quarters. The last quarter ended May 4, and domestic comparable sales fell 6.3 percent.

Laptop comparable sales have increased over the previous two quarters, indicating a comeback. Best Buy believes fresh product introductions will boost shop traffic and company success.