On Tuesday, Best Buy Co Inc announced its revenue for the fourth quarter has increased 1.3% amounting to $14.2 billion. The largest US consumer electronics chain affirmed that its recent holiday season turned out to be a great one.

As per the chain, the sales increased due to more than expected sales of big-screen TVs and mobile phones. Counting special items, the chain was able to beat the predictions of analysts for the fourth quarter.

Hubert Joly, Best Buy's president and CEO, was of the view, "these two categories were the primary drivers of our year-over-year revenue growth, and more than offset weakness in the tablet category which was impacted by material industry declines".

Owing to this progress, Joly said that they have decided to return additional capital to shareholders including one-time dividend. The announcement explains their commitment to return excess capital to their shareholders, while preserving the ability to continue to invest in the growth of the company.

Chief Financial officers Sharon McCollam was of the view that majority of people who need a smartphone are the ones, who already have one. They will not buy till the time a new one is introduced.

As per Sharon, sales in mobile phone increased largely due to year-over-year increase in selling prices. The gains in the TV and mobile phone categories were balanced by weaker sales of tablets, which depicted an industry- wide decline in sales of the devices.

Experts affirmed that smartphone screens are getting bigger and it seems that demand for tablets is also declining. In such a scenario, Best Buy cannot count on this category to strengthen its growth. Also, the company is witnessing decline in demand for extended warranties and increased demand for free, quick shipping on online purchases.