Amazon Partners with Best Buy to sell Smart TVs

Amazon.com Inc. (NASDAQ: AMZN) and Best Buy Co Inc. (NYSE: BBY)announced on Wednesday a partnership to sell Smart TVs embedded with Amazon’s Fire TV at Best Buy locations. Best Buy shares rose by 3.5 percent.

Best Buy will launch more than ten 4K and HD Fire TV Edition models from Toshiba and Insignia as part of the collaboration. The TVs will be sold at locations in the U.S. and Canada starting in the summer.

“Amazon and Best Buy have a long history of working together, and today we take our partnership to a new level,” said Jeff Bezos, Amazon founder and CEO.

Best Buy already sells a variety of Smart TVs, but the difference between the Fire TV embedded ones are that they are Alexa-enabled, offering users a different and unique experience.

The partnership also means that the Insignia TVs will no longer be powered by Roku Inc. (NASDAQ: ROKU), but Best Buy will still continue to sell other products powered by Roku.

This isn’t the first time Best Buy is selling a product of Amazon. The two already have a partnership where Best Buy sells Amazon’s Kindle at its retailer locations.

Amazon launched a partnership with Kohl’s last year to create a small section in Kohl’s locations called “The Amazon Smart Home Experience,” where Amazon sold its products such the Echo and Fire TV. The partnership also included professional services that help customers with installing Alexa-enabled products into their homes.

Amazon also sells its own products at its Whole Foods locations after it acquired the grocery chain last year.

The partnership allows the two companies to benefit heavily. Amazon, which is predominantly known for its e-Commerce retail business, will be able to enter into yet another physical location to launch its products. Best Buy will benefit because instead of competing against Amazon for TV sales, it will now work with the e-Commerce giant.

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