Best Buy to dramatically expand sales of Apple Watch

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Electronics retailer Best Buy is upping its bet on Apple's new smartwatch ahead of the holiday season.

Beginning Sept. 4, the Apple Watch will be sold in more than 900 stores, and by the end of September it will be in all 1,050 locations and 30 Best Buy Mobile stores, the company said in its fiscal second-quarter earnings call Tuesday. It will also be in more than 50 Canada stores by the holidays, compared to 20 today.

Best Buy will also feature the watch more prominently in the store "because demand has been so strong," CEO Hubert Joly said on the earnings call. The company is adding more new Apple fixtures and larger display tables to its in-store Apple stores.

Read More What we know about Apple Watch sales…so far

Best Buy's expansion comes as the Apple Watch has had mixed success since its April debut. In July's fiscal second-quarter earnings call, Apple CEO Tim Cook said sales of the watch, which acts as an app-enabled wearable mobile device, exceeded internal expectations.

But analysts have described interest in the watch as "tepid" and "less than spectacular."

"Although the Apple Watch rate of decline is tracking slightly better than other products, initial interest was less to begin with and we conclude that watch demand is mediocre," UBS analyst Steven Milunovich wrote in a note about the device's Google search data earlier this month.

Read More Is interest in the Apple Watch dissipating?

Best Buy was the first retailer outside of Apple stores to sell the watch, beginning with 100 locations earlier in August.

"The Apple Watch is an important addition to an emerging product category, and we know our customers want it," Jason Bonfig, senior category officer at Best Buy, said in a July press release.

—Reporting by CNBC's Krystina Gustafson.

Apple Watch hits Best Buy shelves today