$50 sale leaves Radio Shack with nationwide shortage of Apple's iPhone
Just days after Radio Shack began a promotion offering $50 off the iPhone, and before the sale was set to expire, many of the U.S. retail chain's stores are sold out of their entire stock of phones.
AppleInsider contacted a number of Radio Shack stores on Friday, and all but one, spoken to in Tennessee, indicated they are completely sold out of the iPhone 4. And even that one store only has the 32GB model available in limited quantities.
Another store in North Carolina indicated that the "entire region" of stores was completely out of stock of the iPhone 4. Another store indicated that customers can still buy the handset online and obtain the $50 rebate, and the phone ships in an estimated two days.
AppleInsider made the calls after it received word that the company had essentially run out of iPhones on a company-wide basis. A request for information from Radio Shack's corporate public relations department was not returned.
Radio Shack has seen tremendous demand since it launched a promotion on Sunday slashing $50 off the price of all iPhone models with a two-year AT&T contract. The retail chain is also offering a 16GB iPhone 4 for just $25 with the trade-in of an iPhone 3GS.
The promotion is set to run through Saturday, Dec. 11, but those who waited on the deal may be forced to order their iPhone online, as most Radio Shack stores are completely out of stock. As a major retailer with more than 4,600 storefronts worldwide, Radio Shack is a significant partner of Apple and iPhone seller.
Also Friday, another retailer, Best Buy, ran a major promotion with Apple's handset, offering a free iPhone 3GS to customers who agreed to a new two-year contract. The 8GB iPhone 3Gs regularly sells for $99 with a contract.
AppleInsider contacted a number of Radio Shack stores on Friday, and all but one, spoken to in Tennessee, indicated they are completely sold out of the iPhone 4. And even that one store only has the 32GB model available in limited quantities.
Another store in North Carolina indicated that the "entire region" of stores was completely out of stock of the iPhone 4. Another store indicated that customers can still buy the handset online and obtain the $50 rebate, and the phone ships in an estimated two days.
AppleInsider made the calls after it received word that the company had essentially run out of iPhones on a company-wide basis. A request for information from Radio Shack's corporate public relations department was not returned.
Radio Shack has seen tremendous demand since it launched a promotion on Sunday slashing $50 off the price of all iPhone models with a two-year AT&T contract. The retail chain is also offering a 16GB iPhone 4 for just $25 with the trade-in of an iPhone 3GS.
The promotion is set to run through Saturday, Dec. 11, but those who waited on the deal may be forced to order their iPhone online, as most Radio Shack stores are completely out of stock. As a major retailer with more than 4,600 storefronts worldwide, Radio Shack is a significant partner of Apple and iPhone seller.
Also Friday, another retailer, Best Buy, ran a major promotion with Apple's handset, offering a free iPhone 3GS to customers who agreed to a new two-year contract. The 8GB iPhone 3Gs regularly sells for $99 with a contract.
Comments
Update: (I mean iPhones perhaps don't need discounting)
There is probably a moral to this story
Apple might make even more money if they use BOGO or free or almost-free pricing strategies?
Dunno. They have to consider perceptions if they are aiming for long-term outsized margins. If the iPhone is seen as a heavily discounted item, it might reduce profits long-term.
Dunno. They have to consider perceptions if they are aiming for long-term outsized margins. If the iPhone is seen as a heavily discounted item, it might reduce profits long-term.
Sorry I now see my post was ambiguous. My meaning was the other way around than the way I think you took it. I meant there is no need to discount iPhones.
With monthly bills averaging $80/mo for service, I just don't understand how a $50 discount on the phone itself is the thing that suddenly makes it affordable for some people. Hard to imagine they're thinking it through.
I think you completely miss the fact that this was an amazing walk-in upgrade opportunity for 3G/3GS users who got the new iPhone for as little as $25.
I'm sure the overwhelming majority of sales that contributed to this sell out were trade-in/upgrades.
Regardless, anyone who was looking to purchase an iPhone 4 this week would have been foolish to go Apple or AT&T instead with a 25% discount running. Not that hard to figure out.
People without expensive smartphones didn't just leap out the door at the discovery of this sale.
Didn't see that coming.
RADIO shack had 5 in stock per store anyway /
9
"For Apple?" they laughed.
"You will soon be carrying a lot of Apple products" I replied.
"Never" they said.
"You'll see" I said.
I am a seer, hear me roar.
There is probably a moral to this story
Update: (I mean iPhones perhaps don't need discounting)
Wouldn't the moral of the story be that if you want to sell a lot of product, lower the price? And didn't they succeed? Surely you don't think they didnt want to see all that product, right?
Any chance Radio Shack will extend this deal?
With monthly bills averaging $80/mo for service, I just don't understand how a $50 discount on the phone itself is the thing that suddenly makes it affordable for some people. Hard to imagine they're thinking it through.
It's doubtful that a significant number of people suddenly felt that they could afford an iPhone due to the $50 off.
Rather, these were probably people who were planning to buy the iPhone, anyway, and chose Radio Shack to save $50.
It's doubtful that a significant number of people suddenly felt that they could afford an iPhone due to the $50 off.
Rather, these were probably people who were planning to buy the iPhone, anyway, and chose Radio Shack to save $50.
+1
Yes. It's not a big discount but it steered customers into the "shack" , it did not make Apple any extra money. If I was buying an iPhone that week I would have gone there.
I was going to upgrade eventually, and since I was rolling month to month on the old plan anway, I saved $111 plus tax.
Gave some thought to adding a tether plan for my wifi only iPad, but for my use, I just don't need it. I have wifi practically everywhere I travel, and where I don't iPhone4 will fill in for emergencies. YMMV.
It seems pretty short sighted for Radio Shack not to have anticipated demand and had more stock available if they really wanted to draw people in and become a viable option to sell wireless products. As it stands now, I have even less of a reason to buy anything from them. The staff I encountered were neither friendly, nor very knowledgeable ? although they did go out of their way to inform me that AppleInsider were liars for suggesting we could get the deal from the online store, even though it was one of their fellow employees who apparently passed on that erroneous information. I suspect Radio Shack may have done more harm to their reputation than good with this poorly planned sale.
I was excited by this promotion as a great ... No rain checks, no apologies, no help.
Welcome to rule by corporatocracy.
It's doubtful that a significant number of people suddenly felt that they could afford an iPhone due to the $50 off.
Rather, these were probably people who were planning to buy the iPhone, anyway, and chose Radio Shack to save $50.
I think that a lot of people go to radio Shack looking to get a cheap phone. They saw the iPhone, it fit the bill, and they went home with it. It is interesting that there is as much price elasticity as this sale seems to indicate.
Another store in North Carolina indicated that the "entire region" of stores was completely out of stock of the iPhone 4.
I'm in Raleigh, NC and when I asked several stores how many phones how many they had BEFORE the promotion started, their answer was "none".
This was an unbelievably poorly managed promotion, even for Radio Shack.