​Target Looking to Grab its Share of the Smartphone Market

Target originally opened as a slightly upscale alternative to the big box superstores sweeping across the country. Centralized in the Midwest, it moved from Minnesota and Wisconsin into areas along both the East Coat and West Coast. Though the chain sells clothing and many of the other products found at Walmart and similar stores, it partnered with notable designers to give shoppers something different and to makes it stores a destination. According to some reports, Target may also want to increase the share that it has in the smartphone and electronics market.

Target Partners with the Big Three

The price of a smartphone today can easily reach $500 to $600. The three largest carriers give customers the chance to buy those phones at lower prices. The carriers run credit checks and offer more affordable deals for those with the best credit. Those with lower credit scores can purchase a phone for a higher price, and some of the carriers also offer financing programs. Target now has deals in place with the three biggest cell phone providers: Verizon, Sprint and AT&T.

How it Works

Some might wonder how Target can make it any money when it sells phones and service plans for other companies. The answer is simple. Target works out an agreement or partnership with each company. Every time that it sells a phone for another company, it receives a percentage of the price of each phone. Some insiders report that Target may also get a small percentage of each monthly bill that a customer pays after purchasing a phone through one of its stores. With millions of people shopping the store, these partnerships give Target the chance to make some big sales in the coming years.

No Better Time

Shoppers looking for deals this holiday season might feel haunted by what happened in 2013. Despite Target using a number of security measures and encryption software, hackers managed to steal social security numbers, credit card numbers and personal information from a number of online shoppers who used the site. Though Walmart suffered a similar security breech, Target suffered an even larger loss. Thanks to the deals offered in stores and its sudden abundance of smartphones, tablets and other electronic devices, Target hopes that shoppers will forget about what happened in the past and come back to its stores.

Black Friday Deals

Target hopes to get shoppers into its stores with its Black Friday deals. One of those deals arrived in stores early in November. It allowed shoppers to buy the new Samsung 5 for just one penny. Shoppers interested in the deal signed a contract and agreed to purchase a Verizon plan and remain with that company for no less than two years. The new Black Friday deal lets shoppers get the phone for one penny and work with any of the three major networks. Ehsan Bayat, an expert in technology, believes that this is a smart way to grab the attention of customers but still let them have more choices. Target will also drop prices on the new iPhone and some Android smartphones. Shoppers will also find low prices on several tablets and deals that give them free gift cards when purchasing electronics. Black Friday will introduce Target as one of the new players in the smartphone world.