RadioShack's wireless woes

RadioShack continues to face challenges with its wireless sales. Although the firm yesterday reported first-quarter profits that doubled Wall Street expectations, these results were because of cost-cutting measures.

The chain continues to have problems with its wireless sales. Much of the firm's troubles stem from a 15-month struggle to transition from selling Verizon Wireless to selling AT&T. That transition caused a 25 percent decline in wireless handset sales, the retailer says. A big part of the problem is that RadioShack stores compete with nearby AT&T direct-to-customers stores. These stores initially were located near RadioShack stores so they could compete against Verizon. When RadioShack made the switch from Verizon to AT&T, that strategy has provided some uncomfortable overlap. Plus the firm has more competition from big box retailers such as Best Buy and CompUSA that have finally embraced wireless.

It wasn't so long ago that RadioShack was the darling of wireless retail. Back in 2001-2004, the firm was known for its ability to help customers sort through the various wireless offerings and provide answers to tricky technical questions that often stumped other wireless retail help. But now that consumers are more wireless-savvy, it appears that expertise is no longer as valuable.

For more on Radioshack's Q1:
- see this Forbes article

Sponsored by ADI

What if we were always connected? With the help of our advanced wireless technology, even people in the most remote places could always be in touch.

What if there were no ocean, desert, mountain or event that could ever keep us from telling our stories, sharing discoveries or asking for help? ADI’s next-gen communications technology could keep all of us connected.

Suggested Articles

Dish Network inked four fiber deals for backhaul and fronthaul to support its new nationwide 5G network.

FCC Chairman Ajit Pai announced he plans to leave the FCC on Inauguration Day, January 20, 2021.

AT&T has shifted its Cricket prepaid brand to a 100% authorized retailer model, according to Wave7 Research.