Radio Shack set to become nation's second-largest iPhone retailer

Posted:
in iPhone edited January 2014
Radio Shack this weekend will become the second-largest third-party retailer of Apple's iPhone by storefronts when it launches a front-page promotion to celebrate the rollout of the touchscreen handset to thousands of its shops nationwide, AppleInsider has learned.



Come March 28, the specialty electronics retailer will offer the iPhone in 3,000 of its 4,500 stores across the U.S., completing a first-phase expansion that will see it leapfrog both AT&T and Best Buy in terms of the number of brick-and-mortar retail locations that will stock the device for walk-in activations, but not necessarily in terms of volume sales. Only big-box retailer Walmart will offer the device in more stores.



Radio Shack has been gradually working towards the milestone since January, expanding sales of the Apple handset to hundreds of new stores each week, following a successful pilot program that began late last year in a handful of locations around Manhattan and its home base of Dallas-Fort Worth, Texas.



The move could serve as a boon for Apple's iPhone shipments during a seasonally slow period of the year, when the Cupertino-based company routinely sees a pull-back in sales of the device as consumers start anticipating the arrival of next-generation models that have historically turned up in the June timeframe.



For its part in this, Radio Shack plans to promote the entire family of iPhones on the cover of its March 28 circular, at what it claims are the lowest prices ever offered for the touchscreen handset nationwide -- essentially $5 off MSRP across the board, or $95 for the 8GB iPhone 3G, $195 for the 16GB iPhone 3GS, and $295 for the 32GB iPhone 3GS.



The circular, an advance copy of which can be seen below, is expected to reach roughly 20 million households this weekend through distribution deals that will see it included in editions of the nation's leading newspapers, a representative for electronics retailer told AppleInsider.



Radio Shack locations will also be touting their cell phone Trade-In Program as a means for customers to obtain a new iPhone for a fraction of the cost. Specifically, the program offers customers the option of turning in their old phone in return for a Radio Shack gift card that they could turn around and use towards the purchase of a new iPhone or other product.



For example, a previous-generation 16GB iPhone 3G that appraises "in fairly good condition" could net up to a $171 Radio Shack gift card, if it is tied to an expiring or expired two-year contract, bringing the cost of a new 16GB iPhone 3GS down to just $25 before taxes and AT&T's standard $36 new phone activation fee.



Similarly, a BlackBerry Bold 9000 in good condition could be worth up to $143 in trade-in value, according to Radio Shack's website, while a HTC MyTouch 3G and Palm Pre could each fetch up to $120.







The arrival of the iPhone should also serve as a compelling addition for Radio Shack associates, who are likely to push sales of the device due to its high commission structure. People familiar with the matter say each new iPhone activation has potential to net employees up to and beyond $30 in commission-based compensation, roughly two times that of many other handsets offered by the retailer.



In related news, shares of Radio Shack rose more than 7 percent Friday to $23.43 after a story in the New York Post speculated that the company was exploring a potential merger with rival Best Buy or seeking a leveraged buyout with investors.
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Comments

  • Reply 1 of 36
    msanttimsantti Posts: 1,377member
    Radio Shack.



    No comment.
  • Reply 2 of 36
    quadra 610quadra 610 Posts: 6,741member
    Quote:
    Originally Posted by msantti View Post


    Radio Shack.



    No comment.



    You might as well say the same thing about all non-Apple Stores that aren't particularly upscale, like Best Buy, etc.
  • Reply 3 of 36
    It doesn't matter to me where they sell, as long as they sell.
  • Reply 4 of 36
    spotonspoton Posts: 645member
    Good, now when there is a long line of native Chinese buying their per person limit of 10 contract-less iPhones to sell on the grey market back home, they won't be clogging the lines at the Apple Stores.
  • Reply 5 of 36
    msanttimsantti Posts: 1,377member
    Quote:
    Originally Posted by Quadra 610 View Post


    You might as well say the same thing about all non-Apple Stores that aren't particularly upscale, like Best Buy, etc.



    Well, I actually used to like them back in the day but there just seems to be less of a point for their being nowadays IMO.



    There are a lot of them around and many small towns have them so I guess its not a bad thing.



    But then, I live in Houston so there is just nothing real attractive about them.
  • Reply 6 of 36
    esummersesummers Posts: 885member
    Quote:
    Originally Posted by SpotOn View Post


    Good, now when there is a long line of native Chinese buying their per person limit of 10 contract-less iPhones to sell on the grey market back home, they won't be clogging the lines at the Apple Stores.



    Shipping to China is cheap. Why would it need to be chinese people selling to China. I think the contract-less phones are still locked to AT&T though, so the roaming charges may be a bit much.
  • Reply 7 of 36
    masternavmasternav Posts: 442member
    Quote:
    Originally Posted by SpotOn View Post


    Good, now when there is a long line of native Chinese buying their per person limit of 10 contract-less iPhones to sell on the grey market back home, they won't be clogging the lines at the Apple Stores.



    the Russians too!

  • Reply 8 of 36
    Congratulations on buying an iPhone. May I have your zip code please? No, I must have your zip code. There is no way in hell I can sell you this iPhone unless you give me your zip code! GIVE ME YOUR ZIP CODE!! You don't want to give me your zip code? Fine, no iPhone for you. Would you like overpriced batteries? Yes? OK, what's your zip code?
  • Reply 9 of 36
    Radio Shack...



    DO NOT WANT.
  • Reply 10 of 36
    Quote:
    Originally Posted by msantti View Post


    Radio Shack.



    No comment.



    This is great news for Apple! They always seem to do exactly the right thing at exactly the right time!
  • Reply 11 of 36
    psych_guypsych_guy Posts: 452member
    Just saw that Radio Shack is positioning itself to be sold . . . to Best Buy possibly. Could this move by Apple portend that acquisition?
  • Reply 12 of 36
    Quote:
    Originally Posted by JamesJpn View Post


    Congratulations on buying an iPhone. May I have your zip code please? No, I must have your zip code. There is no way in hell I can sell you this iPhone unless you give me your zip code! GIVE ME YOUR ZIP CODE!! You don't want to give me your zip code? Fine, no iPhone for you. Would you like overpriced batteries? Yes? OK, what's your zip code?







    Quote:
    Originally Posted by AppleRulez View Post


    This is great news for Apple! They always seem to do exactly the right thing at exactly the right time!



    Quadra 610?.. is that.. you?
  • Reply 13 of 36
    hillstoneshillstones Posts: 1,490member
    Quote:
    Originally Posted by msantti View Post


    Well, I actually used to like them back in the day but there just seems to be less of a point for their being nowadays IMO.



    There are a lot of them around and many small towns have them so I guess its not a bad thing.



    But then, I live in Houston so there is just nothing real attractive about them.



    If you ever needed to fix something electronic, you would have a reason to shop at Radio Shack, or now known as, The Shack. Although they do sell some consumer electronics, the majority of their stores specialize in electronic repair items. Best Buy, etc do not sell such items.
  • Reply 14 of 36
    macslutmacslut Posts: 514member
    Quote:
    Originally Posted by Bueller_007 View Post


    Radio Shack...



    DO NOT WANT.



    Why? Radio Shack actually sells some pretty decent things now days...like iPods and iPhones.



    Radio Shack has a really bad rep for crappy products and brands (I'm looking at you Tandy), but there are a lot of Shack locations around America in small towns where that's the local store for electronics. They had been selling other phones for other carriers, but now provide a location in a lot of town where an Apple Store is nowhere around. The location presence means a lot to many potential buyers as it's a place to come in, demo, get instructions and help.
  • Reply 15 of 36
    hillstoneshillstones Posts: 1,490member
    It always amazes me that the little fanbois are willing to pay top dollar at an Apple Store instead of trying to save a few bucks and obtain the same item elsewhere at another store. Not too bright if you ask me.
  • Reply 16 of 36
    msnlymsnly Posts: 378member
    Quote:
    Originally Posted by hillstones View Post


    It always amazes me that the little fanbois are willing to pay top dollar at an Apple Store instead of trying to save a few bucks and obtain the same item elsewhere at another store. Not too bright if you ask me.



    I go to Radioshack, for some things...
  • Reply 17 of 36
    bugsnwbugsnw Posts: 707member
    Radio Shack has improved over the years. My son likes to go in there and see all the gadgets. It brings back fond memories of those TRS-80s in high school. I can't see Apple selling their kit there with any degree of success. Most Radio Shacks I've seen at malls are always stuck down at the crappy end, just outside Sears.
  • Reply 18 of 36
    guarthoguartho Posts: 1,208member
    I still see no reason to treat this article as anything other than the gospel truth.
  • Reply 19 of 36
    rob55rob55 Posts: 1,247member
    Quote:
    Originally Posted by bugsnw View Post


    Radio Shack has improved over the years. My son likes to go in there and see all the gadgets. It brings back fond memories of those TRS-80s in high school. I can't see Apple selling their kit there with any degree of success. Most Radio Shacks I've seen at malls are always stuck down at the crappy end, just outside Sears.



    My last few experiences at Radio Shlock were like their slogan - "You got questions, we DON'T have answers". The girl they had working there could barely figure out how to use her terminal to ring up a sale, I can't imagine how she'll fare trying to sell an iPhone. Here boss wasn't too much brighter either.
  • Reply 20 of 36
    jupiteronejupiterone Posts: 1,564member
    Quote:
    Originally Posted by Guartho View Post


    I still see no reason to treat this article as anything other than the gospel truth.



    Love it. Weren't they supposed to change their name to "The Shack" a while ago? I thought they just sold radio controlled cars anymore.
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