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Competitors squeeze TV sales out of Best Buy
Best Buy Co.'s third-quarter net income fell more than expected as it lost sales of lower-priced TVs and laptops to competitors, and more expensive 3-D and Internet-connected TVs failed to catch on.
Shares of the largest U.S. electronics chain fell nearly 15 percent Tuesday as the results raised fears over Best Buy's holiday season. The company also cut its guidance below analyst expectations.
Best Buy benefited when Circuit City went out of business last year. Now it's getting squeezed between online sellers like Amazon.com and discount stores like Walmart and Target. All sharply reduced prices on flat-screen TVs to drive sales during Black Friday and the busy shopping weekend over Thanksgiving.