Radio Shack Profits Affected By Low T-Mobile Sales

Reuters early morning report on the quarterly earnings of Radio Shack highlighted the weakness in the earnings based partially on T-Mobile sales.

“RadioShack gave up a lot of compensation from AT&T and Sprint to carry T-Mobile, and this partnership doesn’t appear to be panning out the way management expected,” RBC Capital Markets analyst Scot Ciccarelli said last week.

Sales at Radio Shack retail stores fell by 0.6% in the first quarter with the company pointing the finger at weak postpaid T-Mobile sales as a cause.

This sounds exactly like the kind of report AT&T will eat up as a reason why the FCC and DOJ should approve the AT&T/T-Mobile merger.

Reuters via BGR

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  • Jack

    Based on my thoughts and opinion, but….

    It’s just like RadioShack to try to point the finger at anyone but themselves. They refuse to shoulder any blame for their performance. Perhaps if they took time to train their sales reps, they would actually have a staff who would understand how selling T-Mobile would help their bottom line. As it is, RadioShack sales reps “clerk” every sale that walks in the door and refuse to put effort into the sales process. Output cannot exceed input RadioShack…Perhaps your output is a measure of how much input or effort you have put into selling T-Mobile?

    • Not4sakn

      Honestly, I don’t feel its Radio Shacks fault. I work in a corporate store and ever since the merger was announced our sales have dropped dramatically. There are lots of people who refuse to be ATT customers and post paid activations have suffered greatly due to this company wide.

      • Deceptivesmiles

        There’s no doubt that Tmo sales have plummetd due to the scare of the buyout, that is obvious, however RS has to take accountability for bein an overpriced store whose sales the same stuff u can buy elsewhere for less. I only go into RS for things like s-video wires and things of that nature and that’s only because Walmart is too far and don’t want to wait for shipping

      • Anonymous

        @ Not4sakin,

        THE DECREASE IN EARNINGS WAS BEFORE THE ACQUISITION ANNOUNCEMENT…. the sale associates ARE clerkers and would rather have an easy sell make less money then sell tmobile.

  • whosaidwhat

    You know what? This doesn’t surprise me at all. I know people here like to get on AT&T for trying to buy T-Mobile and all but I believe T-Mobile was/is a sinking ship. I rather they make some money off AT&T than file for bankruptcy and die a slow death.

    Truth is that they are not doing well and something had to be done. I went to my local best buy (Mays Landing, NJ) to pick up the G2x on release day and to my surprise, they stopped selling T-Mobile phones in the store. I was shocked but seeing this article makes me think that best buy stopped selling T-Mobile phones because of poor sales. I hope they don’t lose more support from other brick and motor stores.

    • Matt

      T-Mobile USA made 5 BILLION in profit in 2010. Why do people keep thinking it’s a sinking ship?

      • http://www.cyber-punk.cz.cc/ ShadowRunner

        Exactly and tmobile for many is their only choice outside of prepaid because the other carriers overcharge for everything.

      • Anonymous

        Because they are ignorant.

      • Camille

        It may not have been a sinking ship pre-buyout news, but unfortunately, it is now. I’m with T-Mobile until the end, and they are making some really good moves lately. But, honestly, who would switch to T-Mobile in light of the buyout, regardless of whether it’s been approved or not (and let’s not mention the customers that have undoubtedly been lost). Sorry, but T-Mobile is now a sinking ship.

        • Anonymous

          My friend just switched to T-Mobile from ATT hoping that after the merger goes through, ATT will let T-Mobile customers stay on there pricing plan until they disconnect there service. I think there is more people out there like this than you may think.

  • Samus

    Who even shops at Radio Shack anymore? I’m honestly surprised they are still in business. You can get better prices on amazon for all the same crap you can buy in that store and free shipping most of the time.

    • Ms.Carmen Diva

      But doesn’t Amazon wireless slap on an additional contract?

      • Roboito

        I think they were referring to all goods available at RS as a whole, not just phone sales.

      • http://twitter.com/Plouis1988 Patrick Pierre-louis

        Radio Shack also slaps on an ETF of their own when you buy mobile phones from them.

        • Ms.Carmen Diva

          But if u go into a store, they don’t slap on anything else except what the phone cost.
          I dont buy from Amazon or Let’s talk or anywhere like that because i refuse to sign
          two contracts for a device i may not keep more than 3 months

  • ATL guy

    More ammo for the AT&T gun.
    Doesn’t look like T-Mobile is getting that 3 billion

    • http://twitter.com/PaulHarrisonPro Paul Harrison

      Not sure it’s more ammo so much as it’s a consequence of AT&T shooting what they’ve shot thus far. I would be enormously surprised if T-Mobile’s sales haven’t plummeted since the announcement, especially with AT&T’s early comments about cutting off T-Mobile’s 3G services.

      Nobody buys themselves a T-Mobile phone and plan thinking “I wish I was on AT&T”. And nobody in their right mind gets themselves into a two year commitment with a phone company that’s about to be, effectively, closed down, with customers moved to the operator that’s closing them.

      • Mopar6464

        Your may be looking at it all wrong though.
        If you wait until the last moment before AT&T buys out T-Mobile and extend your contract, AT&T has to honor that cheap plan for its entire two years.
        Just make sure the new phone you get(new or old) has T-Mobile and AT&t 3G bands on it.
        And when it’s time for another renewal in two more years after wards, buy your phone off contract and don’t sign anything.
        They will either keep you as a customer and rate provided you buy your own phone and not subsidize through them or loose your business .
        If AT&T tries to stick you with a new AT&T plan and you don’t like it, then leave.

        • http://twitter.com/PaulHarrisonPro Paul Harrison

          You make it sound like the only reason people go with T-Mobile are the cheap plans. If I wanted cheap, I’d go with Sprint.

          I’m with T-Mobile because:

          1. They’re the only operator that cares about call quality. AT&T’s is slightly worse, and I can barely understand anyone on Verizon when they call me.
          2. They’re the only GSM operator that actually groks GSM – a solid, reliable, open system that anyone can make devices for, that’ll work right if you put the system together properly. There’s a reason Google went with T-Mobile to launch Android.
          3. They have excellent customer service.
          4. They have very few Byzantine rules about how you should use their plans and services, and they avoid overages where good alternatives apply.

          When I went with them (I believe my SIM card is actually a Voicestream one!) they were actually more expensive than AT&T Wireless, the only other GSM operator in my area.

          When AT&T shuts down T-Mobile, I may be able to keep my plan – temporarily – but I’m not going to be able to keep anything else.

          Oh, and BTW, the “off contract phone” option isn’t. AT&T locks their phones, whether bought subsidized or at full price. You can’t put a T-Mobile SIM in, and you’re not going to be able to after the transition either.

          If the buyout happens, the one hope is that one of the LTE operators will take over where T-Mobile leaves off.

        • Mopar6464

          Nope your wrong.
          My brother is on AT&T and i Unlocked it in 10 minutes,put my T-Mobile Sim card in his phone and web surfed and made calls all day long. He was shocked how easy it was to do and AT&T has said nothing about it for over a year now. He then bought a replacement phone off of Ebay so he would’nt have to deal with AT&T at all and there was no issues unlocking that phone and putting his Sim card or my T-Mobile Sim card in it either.
          And again he is under AT&T contract with a rate plan that cost twice mine of T-Mobile.
          You can unlock any phone in 15 minutes yourself with the unlock code cost for about $25.00 all day long on the net anywhere.
          My 2 cents worth.

        • http://twitter.com/PaulHarrisonPro Paul Harrison

          With respect, no. Unlocking phones without the help of the carrier is generally difficult in the US, and while services exist that’ll let you do it, the general concept is not something you’ll find most people willing to embrace. If it were… well, nobody would be complaining about how long it took HTC to release OS updates for the myTouch line, given CyanogenMod is even better.

          BTW, you’re also going to be stuck with AT&T’s range of phones even if you do go down the unlocking route, and I don’t know about you, but I don’t like that idea at all. Their Android stuff is almost as locked down as the iPhone – they have the same attitude towards their customers today that Verizon had two years ago.

        • Mopar6464

          With respect , Yes you can.
          I’m doing it Right now on my brothers AT&T iphone right now.
          T-Mobile name at the top left of his AT&T branded phone but with Edge service because it’s not T-Mobile 1700 mhz 3G phone.
          He is on my T-Mobile HD2 with his Sim Card in the phone and it reads AT&T on the top left of the screen.
          And of course it’s Edge service because AT&T’s 3G is 1900 mhz.
          You do not need any carriers help to unlock any phone. That code can be bought easily on any unlocking website. And once you unlock it, you keep that code and can always unlock it forever if you need to again.
          It is very easy, and you can go to You Tube and there are plenty of videos showing how easy it is to get the code and unlock any GSM phone.
          So no , you are not stuck with AT&T’s lists of phones. You can get any GSM phone , unlock it and Talk,Text,and Web Surf away.
          If you want 3G on either service , you will need a AWS phone that has 1700 & 1900 mhz built in it like some newer phones coming out. That way you can use 3G either on T-Mobile or AT&T service.
          Many people on AT&T and T-Mobile unlock their phones simply because they travel outside the U.S. and use different Sim cards all the time.
          My 2 cents worth.

        • http://twitter.com/PaulHarrisonPro Paul Harrison

          *sigh* I even went to the trouble of bolding the point. What’s the use?

          Did I say you can’t? No.
          Did I say most people can’t? Yes.

          The vast majority of people will find the notion that they need to paypal a fee to an obscure website in return for a code that may cause their phone to be permanently locked if incorrect, or running a Windows tool downloaded from a dubious website, to make a modification to a phone they just paid $400, $500, $600 for, after searching for instructions from other third party sources, frightening and not something they’re willing to do.

          Yes, you and your mate did it. Good for you. I’ve unlocked phones too.

          And I can tell you, while I was willing to do it under the circumstances, my mother wouldn’t. My wife wouldn’t. My brother in law Frank wouldn’t. 90% of my colleagues wouldn’t.

          Do you understand now, or are you going to insist I’m claiming it’s impossible to unlock phones when I’ve said nothing of the sort?

      • Anonymous

        I sell T-Mobile. I have seen a dramatic drop in sales since the announcement, and have heard numerous comments that people are waiting to see what happens. My store is closing at the end of this week because the traffic has dropped below the point of survival…

    • Daniel7992

      39 billion genius

      • Guestty

        No, 3 billion, genius.
        As in the 3 billion AT&T has to pay Tmo IF their acquisition falls through.

  • http://profiles.google.com/mrstrat Randall Ainsworth

    People still buy stuff from Radio Shack?

    Their employees are retards who don’t know a resistor from a capacitor.

    • yyevo

      I bought a battery for my garage door opener. It was some funky sized battery I’ve never seen. RS was closer than Walmart or Batteries Plus. Then he tried to sell me a new phone to go with it!

  • http://twitter.com/SayaX Debra Phagan

    Funny story about RS and from how I’ve seen them handle their business, I would believe it. This is hearsay, but I was told by one of the corporate people that back when they used to sell Verizon, the reason RS lost them as a dealer was because they thought they were in a position to bargain and threatened to cut relations with them unless Verizon gave them a better cut. Verizon didn’t need them so they walked out of that meeting and said “See you later”. Since then, revenue hasn’t been the same, for both the company and the employees (they’re commissioned). All they had after that point was AT&T and Sprint (woo hoo…).

    I kinda find their perspective ironic seeing as I’ve seen it for myself that they are bleeding fast from one incompetent business decision after another. Its like the pot calling the kettle black, because really they’re not in any better position than Tmobile and you and I know if they were offered the same deal AT&T is giving Tmobile to sell their business, they’d do it in a second. I detect envy. And they should be, their business is a mess.

    • Havoktek

      Damn the “Whistle blower comment” was removed!

  • Rep

    Radio Shack Rep’s are 85% crooks that have no idea what T-Mobile policy is and create bad customer dissatisfaction. Radio Shack is Radio Shack’s problem

    • Anonymous

      As opposed to good customer dissatisfaction?

  • FoD

    Agreed – Radio Shack’s business is down because of Radio Shack. How many radio controlled cars can you sell before the market goes flat?

    Personally, if this AT&T deal does not go through, I hope TMo USA sues AT&T for all the damage this buyout is causing TMo.

    • whosaidwhat

      They can’t sue them. That’s why they have an agreement to pay 3 or 5 billion (I forget the actual figure) to T-mobile in case the deal fails.

    • yyevo

      Why? It’s not like TMo didn’t agree to it.

  • Havoktek

    RadioShack is a relic from a past age, I’m not going to kick their employees because we all know that score.
    Yet these fools are trying to hang in with the telecom companies providing……..what??
    Talk about lack of identity, TMO was catchin’ wreck……..birds of a feather you know?
    I hate the fact that there calling out TMO for their lack of business presence, where do they think most of the leak on new devices come from?

  • roboito

    RS should point the finger at AT&T. They are the ones moving this buyout effort forward. Tmo is just a victim of people not wanting to be a part of them because they don’t want to be a possible part of att. You would probably see the same thing with sprint if att tried to purchase sprint. Profit loss by association.

  • http://www.cyber-punk.cz.cc/ ShadowRunner

    problem is radioshack forgot their roots. they sat back as the compusa’s and the bestbuy’s of the world stole their market. and whats sad is radioshack USED to be where you got the cheapest electronics, and they are where they are now because since the late 80′s they have tried to become an electronics high end boutique.
    nobody should have been able to come in and underprice them the had a 70 year head start on everybody(founded in 1921) when you have that much of a headstart you have the advantage of brand, supply chain, and partnerships and they did nothing with that and lost that advantage. hell taget sells more electronics than radioshack at this point.

  • http://profiles.google.com/mahmoud824 Mahmoud Shaaban

    I don’t think it’s because of T-mobile. I walked into a radio shack store and looked at the T-mobile G2 it said a 4 inch touch screen, a 1 GHz processor,( which is not true it has a 3.7 inch screen and a 800 MHz processor) I asked the sales person he said that info is right; i even argued with him but he still believes he is right so i left. RADIO SHACK IS STUPID!. I went to it on black Friday to see the only 2 laptops that they sell and i saw th sales person dragging all the costumers to the sprint and at&t section not T-mobile, he would advertise sprint and At&t and show off his own phone which was a sprint phone i asked him about the T-mobile phone he said ” Sprint has better phones, you should see sprint” WTF Radio shack has a bunch of moron workers.

  • Anonymous

    My mom and my sister both had gotten phones from radio shack. It was so horrible low inventory, then their return policy and the likes are confusing as hell. A lot of BS prices unless you buy on a holiday like christmas, If you can’t move t-mobile how on earth do you expect to move other company’s products? I mean come on I go to radioshack those people aren’t sellers, sellers are persistent and last when I went there the employees just f**k around talking…. Then you only have like 2 people in the stores at all times so who is gonna sell the phones when the other 2 are occupied? jebus christos radio shack is too small in the first place and its practically an accessory store.

  • BladeRunnerMike

    The real problem is that everyone seems to think that Tmobile was already purchased by ATT. I’m running in to that with coworkers that Tmobile…they think they are already with ATT (if it happens).

    It doesn’t help that friends over at Tmobile received their severance and termination packages last Friday in anticipation of the acquisition.

    If you think the company is gone already why would you shop for their products?

    • 4nradio

      Correction. We received *information* about retention bonuses and severance packages (both very generous IMHO). Actual final packages and $$$ distributions are over a year away, depending on what occurs with the buyout and specific positions retained or eliminated.

  • HTC RULEZ..

    ALL I WANNA SAY IS THIS MERGER AND RADIO SHACK CRAP IS NOTHING BUT DODO WAITING TO BE FLUSHED DOWN THE TOILET AND WE ARE THE ONES ACTING LIKE PLUCKY DUCK SAYING T-MOBILE GO DOWN DA HOLE…

    • http://tmonews.com David

      All I wanna say is PLEASE DON’T USE CAPS LOCK.

      • HTC RULEZ..

        My BAD lol…

      • Anonymous

        Sometimes caps get turned on by accident since when did humans decide that caps was yelling the total concept is stupid

        • Anonymous

          Sometimes they do… It’s hard though to not notice a whole paragraph typed in caps lock.

  • Petey

    I’m not surprise. In general att and Verizon is pulling all the customer to their way with the iPhone. Android isn’t strong enough to help T-Mobile… if T-Mobile carries the iPhone. It will help their number grow instead declining. Just gotta carry what’s in demand. Even android is better but regular consumer wants iPhone. Radio shack isn’t the only one complaining about tmobole. Even T-Mobile itself wants to give up as well. If the rumor about iPhone is true (coming to T-Mobile US, than that will probably help T-Mobile alot if only they keep their plan costs low)

    That’s my opinion.

    • Petey

      Oops sorry got off topic lol.

      • Anonymous

        I don’t understand how the iPhone is in Demand with the regular consumer when Android more than doubles the iOS market share.

        • http://tmonews.com David

          Whats hard to understand? Not everyone wants to conform to one standard in the mobile world.

    • Do

      Android…the EVO in particular, saved Sprint. Not to mention Android is the #1 selling mobile platform in the U.S. (Android sells more than the Iphone)

      • Mopar6464

        And if it was’nt for the EVO Android phone Sprint would still have shitty phone selection and still have the worst CS and billing dept.

  • http://www.facebook.com/people/Lucas-LeCompte/47912789 Lucas LeCompte

    radio shack are bunch of shacks. All i go at work is clean up their mistakes from the activations they do. I wish best buy would hurry up and buy them out. Then we will see who is blaming who.

  • eClipse

    Why would you buy a cell phone from Radio Shack?
    Every mall has 40 kiosks and the corporate stores will give you better pricing and better informed sales people.
    Even Walmart is a better choice is price is the only factor.

    • Havoktek

      You know what? That’s real talk! I never thought of that…..How and Why are they still in business??!!

  • Anonymous

    Best buy gonna be a monopoly but with good reason.. They know how to run an electronics store. Their reps are very well informed with the products. Can’t say the same for radio shack.

  • BigMixxx

    let me make sure I understand. They said that they profits are low partly because of low T mobiel sales. What do the real numbers look like for Radio Shack. What about LOW SALES in general.

    Radio shack employees a lot of people, and a lot of people will soon be displaced because of the failure in management at radio shack. Simply put, Same thing that happened to LAs Vegas, TOO much retail.

    These are facts: They don’t carry a lot of name recognized brands except for Heier and Panasonic, of which are of lower value or can be found simply at another store a lot cheaper. The fact also remains that the in store sales team does not push T mobile products as they should, simply because they don’t have the inventory as expected or have a personal preference of ‘other products’ sans Evo or droid incredible. Simply put, Radio Shack has too much and is competing in a Retail space and really needs to pull back into the place where people can actually get something they need vs. provider of ‘everything I want’. Case in point: When a T mobile store is down the street from a Radio Shack store and the prices are higher at Radio Shack, it’s a significant problem. When in the mall, there is a T mobile kiosk and a radio shack and the T mobile kiosk are selling better because they are knowledgeable. it is even more amazing how the fallacy of ‘partially because of low t mobile sales’ becomes more and more untrue. When Costco and Sams/Walmart are beating T mobile stores in new signups, it’s yet another problem. When the demographic you are reaching for is not simply coming into your stores, it’s a problem.

    • Anonymous

      I dont understand how are the prices higher at RS where there are no REBATES….vs the Corp Retail?

  • Maritzagg23

    Well I think t-mobile,metro pcs,boost and cricket if its available in ur area is for people that either have no credit or really bad credit and have a crappy job. Because they don’t really ask for a high deposit like att and verizon. And u guys know its true. Its funny cuz all the people I know that have good jobs and live in the good side of town have verizon cuz they all have good jobs and amazing credit so they don’t have to give a $1000 dollar deposit. And people like me that are broke and have a crappy job and live in the ghetto side of town have t-mobile or boost or metro pcs. I got t-mobile cuz I didn’t want metro or boost since I have crappy credit t-mobile wanted me to give a $250 bucks deposit which is reasonable so I did. Unlike Verizon I went cuz I wanted a thunderbolt 4g and ran my credit and saw that I had crappy credit so they were all like u gotta give a $800 dollar deposit. That’s insane! ! So yea I love u t-mobile u saved me lol <3

    • eClipse

      So be it if you have less options, but that is not why T-Mobile is the best cell phone vendor.

      They win best customer service every year, their data plans are not draconian, nor do they try to nickel and dime you for every service, including ones which are already included for free on your device. Their pricing is better than the other vendors, they offer some of the best, most cutting edge devices, and their network is robust without suffering from iPhone-itis.

      Verizon “wins” in the business sector because of Blackberries, that will slow some in the coming year.
      AT&T “wins” because of iPhone users who had no other choice.
      No one else has anything compelling.

  • Anonymous

    Doubt that is the reason for very low profits but what the hell does T-Mobile expect, everyone is going to blame the planned future buy out as an excuse for anything sales related. If T-Mobile thought that the future buyout was going to increase sales then whatever they are smoking I want some. Throw in what I think is a very sneaky way of advertising a great phone (G2X) supposed future proofed with the AT&T 3G bands. I am extremely offended the way they let the specs sit on their web page for a month showing that the G2X did have AT&T 3G bands. I bought the device thinking it was future proofed, now they say it was a mistake. That is no mistake, that is false advertising and is pathetic on their part. My family bought three of these phones at full price, We are sending them all back. It is a great phone, probably their best device to date but I will not keep the phone and ad it to my collection of expensive paper weights. Very, Very sneaky business practice and I am shocked T-Mobile has not made a loud and clear comment about this. What has happened to T-Mobile, the supposed # 1 in customer care??????????

    • http://pulse.yahoo.com/_ASLY6MKMKHP2HSETXPT73RZNPA infantry11b

      you ever seen a car advertised as having an mp3 disc player when it was only cd compatible? same thing, someone could have just made a mistake. If you want a phone that does have the 850 band, buy a used vibrant on craigslist and go to xda. Until the merger does anything make your g2x any less a good phone? no.

  • Anonymous

    No one buys a phone at Radio Shack because Radio Shack is the SH%$, they buy there because they offer discounts on phones. The reason T-Mobile doesn’t generate a lot of sales at Radio Shack is because RS doesn’t discount TMo phones like the do others. My Mother-in-Law got an Inspire 4G from AT&T at Radio Shack for $49 w/2yr agreement. I wanted her to get a T-Mobile G2, but they were not only not discounted at Radio Shack, they were more expensive there, I think, than at the T-Mobile store.

    • Lupe

      @jaylanPHNX,

      How much was the G2 @ RS? The highest I seen was $99, but mostly I’ve seen it at $49 2 months after its release. You sure u wasnt shopping at Ray-Ray’s Shack

  • Anonymous

    Radio Shack can just go away the same way Blockbuster has if you ask me. Last place I’d go phone shopping.

  • Frigadroid

    Radio shack sales are down because like best buy they want to charge to much for stuff like cables and sometimes priced 10 times more than amazon who delivers to my door.

    • Anonymous

      you know what’s ridiculous, I was at best buy with my friend buying something, and in line in front of us this lady is buying a Monster “gold plated” HDMI cable for $49.99. The SAME ones I bought from Monoprice a few years ago for $2.49 minus the monster name. That’s fucking steep.

  • http://pulse.yahoo.com/_ASLY6MKMKHP2HSETXPT73RZNPA infantry11b

    Their T-Mobile sales wouldn’t have been nearly as low if they weren’t always trying to get someone to port to a different provider to get a better commission.

  • http://twitter.com/josemedina1983 Jose Medina

    Maybe if Radio Shack Reps would be more helpful and would stop showing you dummies instead of actual phones and to be Honest I trust my local T-mobile Reps than someone selling you service for 4 different carriers.

  • gt_byrd

    ummm you announce a buyout by at&t a yr in advance and new customers are not going to buy into your company. i bet t-mobile will be down as a whole. not radio shack. although radio shack has been in free fall for a while, anyone remember “the shack” renaming debaucle?

    • sino8r

      Bingo! Well stated…

    • Lupe

      Keep in mind! IF, the merger happens. RS will lose! If you remember their contract with Verizon ended back in 2003 or 2004. from what I’ve heard it was not a pretty departure, so imagine RS selling just At&t and Sprint. let’s see how their qtrly earnings will look like…

  • Anonymous

    Radioshack=way overpriced
    online shopping=winner

  • DetroitTechnoFan

    Well, when a wireless carrier announces that it’s selling out, what else would you expect to happen to their sales!

    I have always used T-Mobile as long as I’ve used a cell phone, and if I were at the point right at this minute that my phone needed replacement, there’s no way I’d renew my contract. I’d get myself one of the little $60 Nokias that I can get for cash, and just continue on until I knew what was going on with my provider.

    Not only this, as far as I’m concerned, Radio Shack slit their own throats when they abandoned their core business of really hardcore electronics tweakers. You used to be able to build your own sets of speakers from parts you could get there, or fix damn near anything with a couple packs of resistors and capacitors. Can you do that now? Hell no!

  • gt_byrd

    Detroittechfan, all companies seem to be doing this over time. They get out of their niche market to sell what everyone else is. Then close up because they cannot compete in that market. U r correct. Where can you get hard to find cables and connectors? Have to go online and wait a week for it to show up.

  • TMoFan

    I can’t imagine someone signing up with T-Mobile without having concerns despite what att says. If I wasn’t under contact I would definitely think twice before renewing. It’s hard to do business when you won’t even be in existence in a year. It doesn’t really inspire confidence.

    Last time I went to Radio Shack to simply browse T-Mobile phones the rep did everything he could to convince me to switch to att. Then as a test I asked him what kind of grace period T-Mobile and he told me thirty-days when it’s fourteen. Definitely not helpful at all.

    • jaZzyjeff

      Isn’t it thirty days?

      • TMoFan

        Only in Cali is it thirty days otherwise it’s fourteen.

        • Anonymous

          If you buy a phone without altering your contract you also have 30 days… 14s for renewals and activations.

  • bbman911

    Quote: “This sounds exactly like the kind of report AT&T will eat up as a reason why the FCC and DOJ should approve the AT&T/T-Mobile merger.”

    I think you have the chicken before the egg here…the decline in sales is because of this stupid takeover, people are not going to sign new contracts or buy phones when there is so much uncertainty if the phone will even be supported or work when the takeover is complete (or if their rate plan will go up significantly). I know that there is a lot of time before that would happen, but uncertainty is a catalyst in this case and it is going to hurt TMO in the short term regardless of what their press releases say.

  • http://www.facebook.com/people/CeeGee-Borela/100000183782060 CeeGee Borela

    aaawww and i just bought an LG Optimus T las Saturday at radioshack for $144

  • Anonymous

    This isn’t T-Mobiles fault, it’s Radio Shack trying to put the blame on T-Mobile. Radio Shack is a dying store and everyone knows it. I only shop at Radio Shack for those odd cables and parts that I don’t feel like waiting to be shipped. Nobody buy’s household electronics at Radio Shack anymore when you can get better pricing at Best Buy, Walmart, Target, HH Gregg. The list goes on. Radio Shack will eventually die just like Circuit City did.

    • Supersekhon94

      circuit city is alive. you can go to there websited.

      • http://www.cyber-punk.cz.cc/ ShadowRunner

        ya its alive like montgomery wards is lol. http://www.wards.com or compusa http://www.compusa.com/

        basically when a brick and mortar store dies an online store buys the name for pennies on the dollar.
        so if radioshack does go under the site will stay up but in a month there will really small print at the bottom of the page “powered by newegg” or “powered by amazon”

      • Anonymous

        uh no it’s not. The circuit city website is not the old circuit city. It’s basically Tiger Direct, which is a completely different retailer that just bought the name.

        The same thing happened to CompUSA. Tiger Direct takes over the web address and just uses the name as a way to sell more of their products.

        If best buy or radioshack go bust, you can guarantee that Tiger Direct will buy the name so that they can use their web addresses.

  • http://cosmicbreeze.tumblr.com/ DtheArtist

    I thought the reason for this was the AT&T/T-Mobile deal. I have heard a lot of people leave T-Mobile & switch carriers due to the AT&T deal. Leaving to either Verizon or Sprint. So if anything this would work against AT&T than in their favor.

  • Anonymous

    Found an interesting read on the T-Mobile/Radio Shack situation from two months ago. Worth checking out

    The company’s sales and profit on Sprint and AT&T products improved, but T-Mobile had “poor product offerings,” was not competitive with other plans and appeared to have tightened its credit requirements for customers. “RadioShack has sent a formal letter notifying T-Mobile that it has breached its contractual agreement with the retailer. The two companies are discussing a settlement, said RadioShack President Jim Gooch.

    http://seekingalpha.com/news-article/651745-radioshack-shares-drop-on-news-of-25-percent-profit-decline

    • http://www.cyber-punk.cz.cc/ ShadowRunner

      Tmobile not competitive with other plans? are they on crack? their plans were much better than the other three carriers.

      • Gr

        except for Sprint

        • http://www.cyber-punk.cz.cc/ ShadowRunner

          actually when i was with sprint my bill was higher, and sprint is crappy CDMA so the phone I had with them is usless.

  • Lupe

    IMHO RS SHOULD NOT PUT 100% BLAME ON T-MOBILE. HERE ARE MY OPINIONS…

    1. Management: Radio Shack managers think that selling Sprint is next best thing to sliced bread. Where as T-Mobile pays them more in Revenue IF they trained their employees on how to be more Diverse sales people, RS would see a huge increase in store revenue. Also, Veteran managers don’t like change!! Radio Shack & Sprint has a long history and so does At&t, so these Vets are conditioned only to those 2 carriers. For example, a store can sell 90 Sprints, 60 At&t and 5 T-Mobile and still somehow fall short of Revenue quota. Why? Because T-Mobile pays the most for district mgrs – store mgrs – associates, so the vets don’t take the time to learn the product and train themselves, associates or even ask for guidance from Vendor Reps, port customers over from carrier-to-carrier, etc, etc. Another example, if I say, with selling T-Mobile you will earn(the sales associate) $35 sales per hr by activating a new line of service, porting from another carrier vs earning $8 sales per hr to upgrade a Sprint or an At&t. , So, using your resources to its fullest, have guidance & assistance from management and vendor reps, WHAT WOULD YOU DO? HOW WOULD MAKE YOUR MONEY? HOW WOULD YOU HELP THE BUSINESS GROW? They (or some) just rather make the easy money and just coast check-to-check.

    2. Associates: EXPERIENCE, SELF IMAGE. Associates will use their brother-sister-mother-cousin’s best friend experience in selling a carrier’s device to a consumer. Does it work? Sometimes it does, sometimes it doesn’t and with T-Mobile, their customer relationship in the beginning was not the best. Instead of updating the customer who had T-Mobile back in 2000, they would just push them onto (in this order), Sprint, Sprint, Sprint, you sure not Sprint — At&t — Prepaid, then back to T-Mobile (depending on the handset selection and customers credit). So associates play a HUGE role in selling T-Mobile, how to sell T-Mobile and how much they learn from management and vendor reps, therefore helping increase the sales and revenue. IMHO, T-Mobile has the easiest rate plans, rate plan brochure (excluding Flexpay, Even More Plus) than any other carrier. Again, back to my point above is that IF upper management offer the same deals for T-mobile as they would for Sprint and At&t, RS would see a better earnings. For example, if a customer with ANY phone from ANY carrier can trade their phone in and get an EVO for $50-$100 Off MSRP (keep in mind this promo is going on along with the release of the G2, MyTouch4G and the Vibrant at $49.99) the associates are on it. Does it make them any money, NO. Does it help sell T-Mobile, NO. Do management say, BTW don’t forget to try offer the trade-n-save program with T-Mobile (trade-n-save program is suppose to available for ALL Carriers). So, if Upper Mgmnt, store management were able to offer more trade-n-save programs they would have seen an increase in earnings.

    3. Advertising/Promos(based on 3-4Qtr & 1Qtr Ads): How long has the EVO been out? The IP4? How many Android(smartphones in general) do Sprint, At&t have vs T-Mobile? In the 4th Qtr I can count on both hands how many times I seen an smartphone add for: Sprints EVO Trade in program, At&t IP4 for $25-$50 trade in or upgrade program. Where at that time the Vibrant, MT4G, G2 were being sold but not advertised for ANY type of upgrade or trade-n-save promo. So, Again, this was a HUUUGE opportunity for District Mgrs, Store Managers to associates to jump on this to offer T-Mobile. Why? BECAUSE THEY WOULD HAVE EARNED MORE $$$$, MORE $$$ MADE, MORE TMO DEVICES SOLD!!!

    Bottom line,
    Management, Associates & Promos are also to blame when it comes to low T-Mo earnings for RS. If anyone feels differently, feel free to respond. This is a healthy, open adult dialogue. I am not biased, I am just stating my opinion.

    • Lupe

      Cont.

      4. Credit: T-Mobile also changed their Postpaid credit approval structure. Where as in the past, anyone with a pulse could get a T-Mobile account. With fraud gone rampant, T-Mo has became strict with credit approvals, therefore, seeing a drop in Postpaid($0 Deposit) activations vs an increase in Flexpay. Another thing, Fraud has scared RS managers and associates to sell T-Mobile. “…you can’t stop fraud, but only to prevent it from happening…”

      • Gimli89

        I agree with you! Only in the past few months has RS allowed T-Mobiles Event Reps (secondary reps that have few stores but spend more time selling side-by-side with the employees at different retail partners) to come in and help drive sales. They have been seeing increased post-paid activations because of this! It just takes time to get Event Reps into the stores and training the RS employees. Also, RS does not give T-Mobile the same advertising space that they give Sprint, Sprint, Sprint, Virgin Mobile, or At&t! As soon as RS realizes there is not 1 carrier to rule them all (unless that is T-Mobile ^_^) they are not going to see the profit they are looking for!

    • Individual11

      Absolutely. Went to look for a phone at Rat Shack. I have had T-Mo since the beginning, partially for rate and mostly because it is the only carrier that gives me rock solid signal in my house. Sprint does not work in my house. Told the sales guy that 4 times as he continued to pust Sprint. I finally asked if he had a hearing loss, because he couldn’t hear the words “Sprint does not work in my house”. I left and went to a T-Mo kiosk at the mall. Haven’t been back to a radio shack since.

      • Anonymous

        @Individual11,

        Exactly, thats what I am talking about. When I used to have mini-meetings with DM’s all I get is false threats to the Store Managers. “at the end of the day” they need to just sell all carriers. Based on the numbers its not all carriers its just Sprint. If At&t did not have the IP3Gs/IP4, they would be shit in the wind too. Again, I secret shopped several stores and the 1st thing they offer is “GET SPRINTS UNLIMITED EVERYTHING FOR $69.99(not including the Prem. Data Add-on)” My response is, Sprint’s Unlimited Everything is not $69.99 its $99.99. The $69.99 has 400 Land-land minutes therefore not making it UNLIMITED. It was like talking to that Robot on Futurama, he later turned into an asshole n so did the manager.

        When I did events they did more complaining then listening and training. The Vets would complain about how MUCH MORE work they had to do to activate a phone vs. Sprints ABC-123 activation methods. The associates would fall right behind the managers n complain. My statement would always be, “why complain about something that makes you more money as an associate and as a store manager” Yea, yea, there were a few system issues. Hell, there were issues back when Cingular/At&t Merged (nothing to do with Tmo & At&t merge, just comparing system issues) I used to work at RS and I hell trying to activate phones. i still made money for myself n my store…..

  • Lupe

    Response to: This sounds exactly like the kind of report AT&T will eat up as a reason why the FCC and DOJ should approve the AT&T/T-Mobile merger.

    RS is only part of 8% of the National Wireless Retail market. So don’t jump the gun on that statement.

  • 4G_or_not_4G

    OK…who shops at Radio Shack…I can’t remember the last time I was in one of them

  • Anonymous

    Don’t be too hard on T-Mobile . Radio Shack stopped selling Verizon in 2005, only to bring Verizon back in 2009.

  • Anonymous

    Every time I am in RS it seems like their employees are trained to take potential cell phone customers to the Sprint kiosk. I have never seen them try and sell a T-mobile phone.

  • http://www.facebook.com/profile.php?id=1209678510 Vinh Nguyen

    The problem with Radio Shack isn’t their products. It’s the poor leadership and communication from the CEO down to the part time employee that is wrecking this business. They embrace change like its the bubonic plague.

    • Lupe

      @Vinh Nguyen,

      U are absolutely right bro!! I could HI-5 you for that statement. SOME associates want to earn money, some are just there for a check and a waste of space and time. For example, I asked an employee, “so, why are you working here? what are your goals? are you making money? would u like to make more if i showed you how?” .. his response was, “i do this for fun. this is just play money, strip club money for me. i’m straight.” SMFH!!

  • Anonymous

    Maybe because RadioShack blows and nobody shops there unless they are going there specifically for a cheap phone advertised. They have horrible service and don’t know anything about tmo products or services… Still waiting for Best Buy Mobile to gobble these useless stores up…

  • Anonymous

    Lmao @ the executives name being Gooch… lol

  • http://spritemoney.myopenid.com/ Andrew A

    I never go to radioshack and people I know that were about to switch to T-Mobile are not because they said T-Mobile will just become AT&T.

    • Lupe

      @Andrew,

      That’s still a lost for RS, T-Mo & At&t. U know why? Do you think that (some of) associates are competent enough to explain the difference between, acquisition vs merger? NO, so what they do, they offer Sprint, why because it’s easy for them, it’s not a challenge and that’s all they know. another point, they are losing earnings or revenue for both T-Mo & At&t. why? because now this person that was interested in T-Mo is scared that it will be taken over by At&t, this consumer will not switch to At&t because they THINK that (from past experiences or geographical locations) T-Mo coverage suck, and At&t will suck even more if they acquire T-Mo.

      • H8stylist

        That’s the problem all companies deal with from startup if they are not the first fish to swim in the pond. They have to find ways to shake the stigma that they were tagged with when they first began. T-mobile has tried to do this numerous ways and hasn’t gotten through to the common consumer. why? well my own personal belief is that the common consumer is just to common (i.e. retarded). JD powers has shown in their reports that tmobile service overall isn’t lacking. in some areas it is, which is just like the others in the industry. the other big irony when it comes to coverage is people don’t understand what it takes to improve their service. you have to find the land, get the approval for the land, and lease it. the approval part is the irony since most the people who need the coverage vote it down cause they don’t want another eyesore (cause with todays technologies cell towers take up SO much space).

        although, i do admit, t-mobile made a error in judgment in signal acquisition. people wouldn’t have the problems with indoor coverage if the frequency wasn’t so high. i know t-mobile can only buy what is available (by the time they came in to play the pickings were probably slim), however, the problem remains the same.

      • Nick

        The article talks about Q1 sales and the acquisition wasn’t a factor for the majority of the quarter. So it has no bearing on why RS sales of TMO were weak in Jan and Feb.

        • Anonymous

          RS fails to mention the amount of fraud that was going on and hiw careless the associates were (and management) when it came to recognizing fraud and preventing it. When they see -$ amounts based on fraud n returns. Who they blame……. T-Mobile.

  • Anonymous
    • Anonymous

      Don’t anyone click that link, it’s a SPAM link. That type of URL is a known scam address.

  • Anonymous

    .vipshopper.us

  • Anonymous
  • Anonymous