iPhone addition predicted to boost RadioShack profits
RadioShack will begin selling the iPhone at its U.S. stores nationwide in 2010, a move that has been viewed as a coup by Wall Street analysts.
Credit Suisse on Monday updated its rating on RadioShack stock from neutral to outperform, citing the addition of the iPhone to the electronics retailer's product lineup. It has set a price target of $25, up from the previous $15. A number of other firms, including Goldman Sachs, Morgan Stanley and Barclays Capital, also upped their ratings, according to Barron's.
RadioShack announced last week that it will offer the iPhone 3G and iPhone 3GS in a few select stores in November, with the program expanding elsewhere in 2010.
"As part of its ongoing mobility strategy, RadioShack is pleased to announce that it will introduce Apple's iPhone 3G and iPhone 3GS in a limited number of company-owned stores in the Dallas-Fort Worth and New York City metropolitan areas beginning later this month," the company said. "RadioShack expects to introduce iPhone in stores nationwide in 2010."
RadioShack will join Walmart and Best Buy -- along with Apple and AT&T stores -- in selling the smartphone. Best Buy began offering Apple's handset in 2008, and Walmart joined the fray later that year.
Agreements with RadioShack are not new for Apple. In 2005, the retailer reached a deal to add Apple's full line of iPods to its stores.
Credit Suisse on Monday updated its rating on RadioShack stock from neutral to outperform, citing the addition of the iPhone to the electronics retailer's product lineup. It has set a price target of $25, up from the previous $15. A number of other firms, including Goldman Sachs, Morgan Stanley and Barclays Capital, also upped their ratings, according to Barron's.
RadioShack announced last week that it will offer the iPhone 3G and iPhone 3GS in a few select stores in November, with the program expanding elsewhere in 2010.
"As part of its ongoing mobility strategy, RadioShack is pleased to announce that it will introduce Apple's iPhone 3G and iPhone 3GS in a limited number of company-owned stores in the Dallas-Fort Worth and New York City metropolitan areas beginning later this month," the company said. "RadioShack expects to introduce iPhone in stores nationwide in 2010."
RadioShack will join Walmart and Best Buy -- along with Apple and AT&T stores -- in selling the smartphone. Best Buy began offering Apple's handset in 2008, and Walmart joined the fray later that year.
Agreements with RadioShack are not new for Apple. In 2005, the retailer reached a deal to add Apple's full line of iPods to its stores.
Comments
And wondering why the stock would shoot up that much for such a limited release.
RadioShack will begin selling the iPhone at its U.S. stores nationwide in 2010.
There's a Shack for that......
its coming folks so watch out
apple will open up the iphone to all carriers
We might even see MVNO rolled out .
R S is extremely trusted out there . maybe it will sell under a R S brand carrier /
NANO PHONE
beep
beep
beeeeep
steve pick up his phone ......
And wondering why the stock would shoot up that much for such a limited release.
Actual price vs. a target price set by analysts is not the same thing.
Also, the price would not go up $10 based a a limited release in a few stores. The change in target price is (most likely) based on "RadioShack expects to introduce iPhone in stores nationwide in 2010."
I thought Radio Shack changed its name to "The Shack"?
nah thats a b52's song
love shack !!!
And wondering why the stock would shoot up that much for such a limited release.
It won't. If it climbs that high it will be through other factors. Long-term stocks are going to go up more as the economy recovers, and RadioShack has been up there before. That aside, it is trading at over $20 right now thanks to this news (up about $2.30).
And yeah, they re-branded to "The Shack", though not completely.
Radio Shack can't generate foot traffic, nor can they create an identity to actually make sales. Oddly, they still manage to make a pretty good profit, and trade at a reasonable multiplier. It might actually be a sign of additional carrier rollouts to come-- but I really was hoping that would happen in time for the holiday shopping season. I would think they are best off releasing out-of-cycle relative to AT&T.
Well at least that will be one thing one could buy from RS that would still be working a week later
NICE!
I have always wondered what mysterious power Radio Shack has to sell this stuff. I hate it there, but have a bud that swears buy them.
Speaking of, here is a funny article from The Onion?Of course, Radio Shack is quite profitable because they low-quality products at high-quality prices?
NICE!
Speaking of, here is a funny article from The Onion?
Thank you! I needed some light entertainment. I nearly split my sides ...
its coming folks so watch out
apple will open up the iphone to all carriers
We might even see MVNO rolled out .
R S is extremely trusted out there . maybe it will sell under a R S brand carrier /
I believe Radio Shack severed ties with Verizon some time ago. Afaik, they sell ATT, Sprint/Nextel, and T-Mobile.
I believe Radio Shack severed ties with Verizon some time ago. Afaik, they sell ATT, Sprint/Nextel, and T-Mobile.
i dunno
i feel radio shack could sell a phone and You choose the carrier
or radio shack could do what jitter bug does and buy blocks of data minutes from all carriers.
for the latter radio shack by fed law is allowed to buy from anyone and the teleco's have to sell to any buyer .
something is afoot here .
9
I believe Radio Shack severed ties with Verizon some time ago. Afaik, they sell ATT, Sprint/Nextel, and T-Mobile.
RadioShack ditched Verizon to sign with Cingular in 2005.
http://www.mobiletracker.net/archive...shack-cingular
The funny thing was that when RadioShack announced their deal with Cingular it said that it would give RadioShack a "significant role" in Cingular's distribution strategy (and of course RadioShack found out later that third party Cingular/AT&T distributors don't get to sell the iphone).
http://mobilitytoday.com/news/005165...k_Cingular_GSM
The most ironic thing is that back in 2005 --- Verizon was rejecting the iphone precisely because Apple demanded a say in iphone distribution. Verizon really cared about its own distribution partners, so they rejected the iphone.
http://www.usatoday.com/tech/news/20...n-iphone_x.htm
After RadioShack signed with Cingular, sales revenue went down a lot, RadioShack's CEO resigned because of a resume scandal, Cingular/AT&T got the iphone and decided to shaft RadioShack by not giving it to sell....
It really drives the point on Verizon's original intent to protect its own distribution partners.
"As part of its ongoing mobility strategy, RadioShack is pleased to announce that it will introduce Apple's iPhone 3G and iPhone 3GS in a limited number of company-owned stores
Those must be the stores that actually know how to sell phones.
Seriously, at every RS I've seen, it takes the entire staff at least an hour to sell & activate a single phone. All while the few other customers get frustrated and walk out.
I honestly don't know how RS manages to stay in business.
RadioShack ditched Verizon to sign with Cingular in 2005.
http://www.mobiletracker.net/archive...shack-cingular
The funny thing was that when RadioShack announced their deal with Cingular it said that it would give RadioShack a "significant role" in Cingular's distribution strategy (and of course RadioShack found out later that third party Cingular/AT&T distributors don't get to sell the iphone).
http://mobilitytoday.com/news/005165...k_Cingular_GSM
The most ironic thing is that back in 2005 --- Verizon was rejecting the iphone precisely because Apple demanded a say in iphone distribution. Verizon really cared about its own distribution partners, so they rejected the iphone.
http://www.usatoday.com/tech/news/20...n-iphone_x.htm
After RadioShack signed with Cingular, sales revenue went down a lot, RadioShack's CEO resigned because of a resume scandal, Cingular/AT&T got the iphone and decided to shaft RadioShack by not giving it to sell....
It really drives the point on Verizon's original intent to protect its own distribution partners.
verizon tried to play hard ball thinking apple was stupid and naive about the tele phone biz
verizon was stunned when apple never returned to the table.
verizon for all its re-writing of history blew it so bad that even to day verizon sends daily love notes to steve .
for years verizon searched the world for a multi media cool beyond belief phone
verizon even set up its stupid v-cast store waiting for that phone .
and when it appeared verizon dropped the ball ./
in 2011 when verizon rolls out its iphone you will see a media blitz like no other .
Successful product added to success retail chain expected to yield positive results.
gasp!