or Connect
AppleInsider › Forums › Mobile › iPhone › iPhone addition predicted to boost RadioShack profits
New Posts  All Forums:Forum Nav:

iPhone addition predicted to boost RadioShack profits

post #1 of 26
Thread Starter 
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.
post #2 of 26
Well at least that will be one thing one could buy from RS that would still be working a week later
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
Reply
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
Reply
post #3 of 26
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.

And wondering why the stock would shoot up that much for such a limited release.
post #4 of 26
And AT&T keeps benefitting the most.
post #5 of 26
Quote:
Originally Posted by AppleInsider View Post

RadioShack will begin selling the iPhone at its U.S. stores nationwide in 2010.

There's a Shack for that......

An iPhone, a Leatherman and thou...  ...life is complete.

Reply

An iPhone, a Leatherman and thou...  ...life is complete.

Reply
post #6 of 26
AHH HAAA !!

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 ......
whats in a name ? 
beatles
Reply
whats in a name ? 
beatles
Reply
post #7 of 26
I thought Radio Shack changed its name to "The Shack"?
post #8 of 26
Quote:
Originally Posted by rbonner View Post

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."
post #9 of 26
Quote:
Originally Posted by Mazda 3s View Post

I thought Radio Shack changed its name to "The Shack"?

nah thats a b52's song
love shack !!!
whats in a name ? 
beatles
Reply
whats in a name ? 
beatles
Reply
post #10 of 26
Quote:
Originally Posted by rbonner View Post

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.
The true measure of a man is how he treats someone that can do him absolutely no good.
  Samuel Johnson
Reply
The true measure of a man is how he treats someone that can do him absolutely no good.
  Samuel Johnson
Reply
post #11 of 26
This is the sort of thing RS should do well - have lots of outlets to sell a proven winner that they don't need to have the tech expertise to support. At least its unlikely they'll use their "one last run" strategy on an iPhone - once a unit is EOL at Apple, nobody gets one. "One last run" was a great technique they used to "manufacture" mid market stuff as their brand - they would watch for EOL electronics models, then contact the manufacturer and tell ask them to make one last run of the model in the factory - and RS would supply the "Realistic" or "Optimus" badges and/or decals to be slipped into the line. Which is why I have a Realistic stereo receiver at work identical to my you-can't-kill-it Pioneer at home, and half my surround speakers are RCA while the others are "Optimus". Upside? RS can manufacture with no upfront tooling costs. Downside? They were continuously selling last year's models.
post #12 of 26
I'd call this a non-event. I actually went in a RadioShack last week trying to buy some headphones. While it was an urban store, it looked like they had been robbed there was so little merchandise. Ended up walking out without any retail-therapy satisfaction.

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.
post #13 of 26
Quote:
Originally Posted by digitalclips View Post

Well at least that will be one thing one could buy from RS that would still be working a week later

NICE!


Quote:
Originally Posted by rbonner View Post

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
http://www.theonion.com/content/news...figure_out_how Of course, Radio Shack is quite profitable because they low-quality products at high-quality prices
http://consumerist.com/5394712/radio...by-2400-markup
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
Reply
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
Reply
post #14 of 26
Quote:
Originally Posted by solipsism View Post

NICE!



Speaking of, here is a funny article from The Onion
http://www.theonion.com/content/news...figure_out_how

Thank you! I needed some light entertainment. I nearly split my sides ...
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
Reply
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
Reply
post #15 of 26
Don't just buy stuff, do stuff..
post #16 of 26
Quote:
Originally Posted by brucep View Post

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.
post #17 of 26
Quote:
Originally Posted by iBill View Post

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
whats in a name ? 
beatles
Reply
whats in a name ? 
beatles
Reply
post #18 of 26
Quote:
Originally Posted by iBill View Post

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.
post #19 of 26
Quote:
Originally Posted by AppleInsider View Post

"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.
post #20 of 26
Quote:
Originally Posted by samab View Post

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 .
whats in a name ? 
beatles
Reply
whats in a name ? 
beatles
Reply
post #21 of 26
Man AI really hurts my head sometimes.

Successful product added to success retail chain expected to yield positive results.

gasp!
post #22 of 26
Quote:
Originally Posted by brucep View Post

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 .

Reality doesn't fit your theory.

Reality is that AT&T Wireless (without the cheap $15 a month Tracfone net adds) --- has rarely beaten Verizon Wireless in the 2 years since the iphone was launched.

Reality is that AT&T share price has not done as well as Verizon has since the iphone was launched.

RadioShack is the perfect example of why Verizon's rejection of the Apple's iphone distribution demands is correct.
post #23 of 26
AT&T defends its i Phone network via YouTube outreach AT&T has published a You Tube response to the mounting complaints about its network in order to explain the issues involved and assure subscribers that it is working hard to address the massive new demand related to iPhone use.
post #24 of 26
Quote:
Originally Posted by samab View Post

Reality doesn't fit your theory.

Reality is that AT&T Wireless (without the cheap $15 a month Tracfone net adds) --- has rarely beaten Verizon Wireless in the 2 years since the iphone was launched.

Reality is that AT&T share price has not done as well as Verizon has since the iphone was launched.

RadioShack is the perfect example of why Verizon's rejection of the Apple's iphone distribution demands is correct.

WELL SAID

verizon still blew it and they have stated this many times
yet so did ATT blow it even worse
,By 2012 anyone at all can sell the iphone so who cares . That includes walmart/target type stores ,I bet amazon will also jump in.
whats in a name ? 
beatles
Reply
whats in a name ? 
beatles
Reply
post #25 of 26
Quote:
Originally Posted by brucep View Post

WELL SAID

verizon still blew it and they have stated this many times
yet so did ATT blow it even worse
,By 2012 anyone at all can sell the iphone so who cares . That includes walmart/target type stores ,I bet amazon will also jump in.

That's like criticizing Warren Buffett for losing $10-20 billion US of his personal networth last year (but yet he still come out as the world's second richest person).

I hope when you show your report card to your parents --- they don't criticize you for getting only a 99 on a math test.
post #26 of 26
Quote:
Originally Posted by samab View Post

That's like criticizing Warren Buffett for losing $10-20 billion US of his personal networth last year (but yet he still come out as the world's second richest person).

I hope when you show your report card to your parents --- they don't criticize you for getting only a 99 on a math test.

I am a google bot what is math ?? is math hard ?
whats in a name ? 
beatles
Reply
whats in a name ? 
beatles
Reply
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: iPhone
AppleInsider › Forums › Mobile › iPhone › iPhone addition predicted to boost RadioShack profits