(Updated With *NEW* T-Mobile Statement) Radio Shack Reports Second Quarter Earnings, Ends Deal With T-Mobile

 

Update: T-Mobile just released a *newer* short statement addressing the Radio Shack morning announcement: 

After careful consideration, we decided that to in order to increase the effectiveness of our retail network and in line with our sales strategy, T-Mobile will exit RadioShack retail locations, effective September 15, 2011. We are currently focused on higher return national retailer opportunities and we expect to announce new channel growth in the coming weeks, which will more than double the number of RadioShack doors currently offering T-Mobile products and services.

Radio Shack posted their second quarter earnings early this morning along with an announcement they were incurring costs associated with the phase out of T-Mobile inventory. T-Mobile’s deal with Radio Shack  will officially end on September 14th. Radio Shack then announced a new partnership with Verizon Wireless in lieu of T-Mobile which begins the following day, September 15th. Radio Shack will sell Verizon Wireless products in all 4300 of their company owned retail locations.

It was last April that Radio Shack partially blamed T-Mobile for their poor financial performance so the decision to end T-Mobile sales won’t exactly come as a surprise. Personally I think Radio Shack should blame their decision to try and change their brand name to “The Shack” as the reason they have all but fallen off the map.

Fierce Wireless

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  • Whylee77

    Let see, who goes to Radio Shack, or THE Shack to get a cell phone… Not I!

  • Whylee77

    Let see, who goes to Radio Shack, or THE Shack to get a cell phone… Not I!

    • Borogovnar1

      Dumba$$ they have the cheapest prices, i see you like overypaying for your products

      • ColdFeet

        I agree with that. I felt the same way about Walmart… “who buys a cell phone from Walmart??”

        Well, I did. And saved 60-70 bucks.

        I don’t need a sales associate to tell me the differences between a myTouch and a Blackberry. I just need a good price on my phone.

      • ColdFeet

        I agree with that. I felt the same way about Walmart… “who buys a cell phone from Walmart??”

        Well, I did. And saved 60-70 bucks.

        I don’t need a sales associate to tell me the differences between a myTouch and a Blackberry. I just need a good price on my phone.

      • ColdFeet

        I agree with that. I felt the same way about Walmart… “who buys a cell phone from Walmart??”

        Well, I did. And saved 60-70 bucks.

        I don’t need a sales associate to tell me the differences between a myTouch and a Blackberry. I just need a good price on my phone.

      • Jeremy (TMO Rep)

        I agree with ColdFeet.  As a T-Mobile Sales Rep that specializes in National Retail (Best Buy, Walmart, Radioshack) Walmart is the cheapest.  Radioshack loses money because they are not willing to come down off their high horse to match prices with Best Buy or Walmart, and both of those stores are willing to do so against each other and Radio Shack.  I can also say this as a former Radio Shack employee, they aren’t making money not because of T-Mobile (and my store was one of the best selling T-Mo stores in the state) but because of their extremely marked up product, inability to get stores stocked with phones and/or accessories, and carrying in-house branded products (Gigaware, Enercell) that sounds tacky to the consumer.

    • Anonymous

      you should, you will save at least a hundred bucks on a good phone

    • Anonymous

      you should, you will save at least a hundred bucks on a good phone

  • HaVokTEK

    I know people are on the merger soapbox and such so I’ll keep my thoughts on tha’ low….
    Yet this is a smart move by the “Crappy Shack” to distance itself from the AT&T onslaught and possibly come back and broker a better deal when the dust settles. Business is business and their bottom line is takin’ on oceans. 
    I may be wrong, so say you but TMO did no good with having them as a partner, I think it degraded the brand name along with everything else. Who REALLY buys phones from the shack that’s in tha’ know? Hmmm?

    Good riddance to bad rubbish…….dig it.

  • Guest

    I think their shotty products and overpricing has more to do with them losing money than any problem with T-Mobile!!!

  • Guest

    I think their shotty products and overpricing has more to do with them losing money than any problem with T-Mobile!!!

  • Stepha4135

    I love radio shack I never pay for my phones cause of their trade in program plus they don’t deal with mail in rebates and their phones be cheaper.

  • Stepha4135

    I love radio shack I never pay for my phones cause of their trade in program plus they don’t deal with mail in rebates and their phones be cheaper.

  • wpmullen

    You what what Radio Shack is good for?  Killing time while your wife is at Sally Beauty Supply, Payless, or (insert other strip mall store here).  

  • wpmullen

    You what what Radio Shack is good for?  Killing time while your wife is at Sally Beauty Supply, Payless, or (insert other strip mall store here).  

  • wpmullen

    You what what Radio Shack is good for?  Killing time while your wife is at Sally Beauty Supply, Payless, or (insert other strip mall store here).  

  • X59tr072

    People buy phones from Radio Shack because of the price…  What they don’t consider is the sales associate is anything but an expert on wireless…  Most of the shack employees still like selling batteries over cell phones.  You get what you pay for.

  • X59tr072

    People buy phones from Radio Shack because of the price…  What they don’t consider is the sales associate is anything but an expert on wireless…  Most of the shack employees still like selling batteries over cell phones.  You get what you pay for.

  • Tmoemployee

    radioshack employees are dumb and dont know nothing thats why they did bad with tmobile we always have to fix there mistakes!

    • Halo

      You are ghetto fabulous

  • Thatguy

    Last time I went to radioshack, they tried to sell me a highpriced shitty cellphone rather than answer questions I wanted answers for.

    Never buying a cellphone from there.

    • IT Guy

      RS employees aren’t too helpful. I went in there last fall looking for a couple components (that they didn’t have) to repair a circuitboard.

      The guy was more interested in trying to sell me an upgrade to the G2 I’d just received the week before.

    • IT Guy

      RS employees aren’t too helpful. I went in there last fall looking for a couple components (that they didn’t have) to repair a circuitboard.

      The guy was more interested in trying to sell me an upgrade to the G2 I’d just received the week before.

  • Really?

    Ugh…as  a fellow RS employee I find it very disheartening that all the comments simply assume EVERY rs employ is a tard, well sorry to disappoint it just isn’t the case. Secondly T-mobile sales are down roughly 80%, yes that’s right 80% for Radioshack. Why would anybody carry something that isn’t giving them profit? Stop being so protective of T-mobile and admit they make some pretty bad mistakes, as I will admit the Shack has made many errors in their philosophy of sales(i.e. ditching Verizon for T-mobile). I’m truly sorry you guys/ladies had bad experiences going to Radioshack, but I ask you one thing. Please don’t lump every rs member into the same category!

    Thank you have nice day.

    • 4gWorker

      What kind of experience is needed to work at radio shack? No prior felony charges? Radio shack employees are extremely retarded…i talk to them all day….they call T-Mobile asking how to do their job! RETARDS!!!

    • Halo

      Woe are you must be paid by RS to post that!
      Troll

    • Anonymous

      THANK YOU!

      Not all of us are idiots, some of us work hard to know what we are doing. Every store is its own little world. find a good one and you have good help for a long time.
      And as much as I LOVE Tmobs, we hardly sold it despite advertising for it. very depressing.

  • Really?

    Ugh…as  a fellow RS employee I find it very disheartening that all the comments simply assume EVERY rs employ is a tard, well sorry to disappoint it just isn’t the case. Secondly T-mobile sales are down roughly 80%, yes that’s right 80% for Radioshack. Why would anybody carry something that isn’t giving them profit? Stop being so protective of T-mobile and admit they make some pretty bad mistakes, as I will admit the Shack has made many errors in their philosophy of sales(i.e. ditching Verizon for T-mobile). I’m truly sorry you guys/ladies had bad experiences going to Radioshack, but I ask you one thing. Please don’t lump every rs member into the same category!

    Thank you have nice day.

  • Cellularcrazy09

    I used to work for a subdivision of Radioshack that owned cell phone kiosks.  We never sold T-Mobile, but my boss said they used to.  We had a huge problem with chargebacks when it came to T-Mobile.  People would buy a T-Mobile phone from us and sell it on ebay or give it to a friend.  T-Mobile wouldn’t pay us the subsidy if the phone didn’t stay on the account for 60 days.  That’s what eventually led our division to get rid of T-Mobile and use Verizon instead.  From a business standpoint, T-Mobile needs to revamp the way that they pay their employees and the way their subsidies work.

    • Halo

      So basically fraud with tmobile has been a problem for a long time..figures given they are the goto network for the credit challenged

  • Majenta Rulz

    Who cares if Radio Shack employees are knowledgeable or not.  Why would I go to a store that I know is going to rip me off?

  • dodo95

    Always hated “Rat Shack”. Crappy service and the employees always seemed that they were doing the customers a favor. 

  • MIKEEEEE

    one more reason the deal should have closed in  60 days.

    the rats are abandoning ship.

    look for a terse statement around december from att killing the deal or requesting a renegotiation.

    the key here is ‘reneg’.

    i think that was their plan all along.

    torpedo t-mo with a long drawn out purchase timetable and squeeze them for a cheaper price closer to the close date.

    ATT; dan hesse, get your financing ducks in a row and paint you armor with white KRYLON.

  • DS

    It makes me sad to say this but this is just more proof that T-Mobile is done. I’m switching to sprint anyone wanna buy a Rooted G2?  

    • Austinclock

      120

  • http://twitter.com/WillieFDiazSF William Diaz ?

    T-Mobile killed off Best Buy and Radio Shack, two of the largest distribution channels they have. Now whats next? Target? Walmart? 

  • http://twitter.com/WillieFDiazSF William Diaz ?

    T-Mobile killed off Best Buy and Radio Shack, two of the largest distribution channels they have. Now whats next? Target? Walmart? 

  • Rudy

    Does this mean i’ll be able to pick up g2x or htc sensation from radioshack as they try to get rid off all the excessive tmobile inventory?

    • Anonymous

      you can pick them up anyway as radio shack is cheaper than almost every retailer when it comes to cell phones. but dont go beyond reasonable here.

    • Anonymous

      you can pick them up anyway as radio shack is cheaper than almost every retailer when it comes to cell phones. but dont go beyond reasonable here.

  • Anonymous

    This doesn’t look to good for T-Mobile. They need to fix themselves before Its too late.

    • http://www.facebook.com/people/Wally-SirFatty/100002167236858 Wally SirFatty

      Do you have any idea what you’re talking about?  Think before you post.

      • Tito!

        Seriously. If anything, it’s only a marketing ploy. Which “The Shack” can stick it where it knows best.
        I couldn’t agree more with David.
        Who Shops at “The Shack”, anyway? Ever? We have target!
        GTFO RADIOOSHACK!

        • Anonymous

          It’s alot of stuff that the need to fix such as improving coverage, aggressive marketing, maybe better management to keep things on track…

        • http://www.facebook.com/people/Wally-SirFatty/100002167236858 Wally SirFatty

          And your qualifications for making such comments?  Back to the basement with you… there’s glue to be sniffed.

        • Anonymous

          This really shows that you been in the cave TOO long.

          As I mentioned in above reply… Try harder next time or mind as well ignore my posts. thanks.

          STOP Attacking.

        • The ATL Guy

          are you a terrorist?

        • http://www.facebook.com/people/Wally-SirFatty/100002167236858 Wally SirFatty

          And your qualifications for making such comments?  Back to the basement with you… there’s glue to be sniffed.

        • Sndallas_pg

          I agree t mobile marketing sucks n top of all its all monkies working at t mobile on higher level which cant control or stop this company to bleed more . Thats why company like metro pcs took over t mobile in activations in a blink. All t mobile did was to sit. Watch like an ediot. Andy. T mobile zen mobile

        • Sndallas_pg

          I agree t mobile marketing sucks n top of all its all monkies working at t mobile on higher level which cant control or stop this company to bleed more . Thats why company like metro pcs took over t mobile in activations in a blink. All t mobile did was to sit. Watch like an ediot. Andy. T mobile zen mobile

        • Sndallas_pg

          I agree t mobile marketing sucks n top of all its all monkies working at t mobile on higher level which cant control or stop this company to bleed more . Thats why company like metro pcs took over t mobile in activations in a blink. All t mobile did was to sit. Watch like an ediot. Andy. T mobile zen mobile

        • Anonymous

          It’s alot of stuff that the need to fix such as improving coverage, aggressive marketing, maybe better management to keep things on track…

        • Anonymous

          It’s alot of stuff that the need to fix such as improving coverage, aggressive marketing, maybe better management to keep things on track…

        • Anonymous

          It’s alot of stuff that the need to fix such as improving coverage, aggressive marketing, maybe better management to keep things on track…

        • Anonymous

          It’s alot of stuff that the need to fix such as improving coverage, aggressive marketing, maybe better management to keep things on track…

      • Anonymous

        Do you have any idea about what’s going on with T-Mobile…?

        Thanks for the advice but , I think you’ll benefit more from it cus YOU surely need to think before you post.

        • http://www.facebook.com/people/Wally-SirFatty/100002167236858 Wally SirFatty

          Yeah, I have a better idea that you do, and that is certainly a fact.  Quit with the fear-monger nonsense, it adds nothing to the conversation.

        • Anonymous

          Oh really?… HAHAHAHA.

          Maybe Learn how to ignore & stop replying to these type of conversation. My opinion may not matter to you, but there might be some people out there who might agree with me (relating to the topic).

          Your replies DOES NOT add nothing but is just bs to what I have to say.

      • Anonymous

        Do you have any idea about what’s going on with T-Mobile…?

        Thanks for the advice but , I think you’ll benefit more from it cus YOU surely need to think before you post.

      • Anonymous

        Do you have any idea about what’s going on with T-Mobile…?

        Thanks for the advice but , I think you’ll benefit more from it cus YOU surely need to think before you post.

      • Anonymous

        Do you have any idea about what’s going on with T-Mobile…?

        Thanks for the advice but , I think you’ll benefit more from it cus YOU surely need to think before you post.

      • Anonymous

        Do you have any idea about what’s going on with T-Mobile…?

        Thanks for the advice but , I think you’ll benefit more from it cus YOU surely need to think before you post.

    • http://www.facebook.com/people/Wally-SirFatty/100002167236858 Wally SirFatty

      Do you have any idea what you’re talking about?  Think before you post.

    • Halo

      WOW I see you have an opinion and the paranoids are feasting on you.
      This isn’t a good forum to express disagreement with tmobile.
      You must be a troll.

      • Anonymous

        Are you kidding me? Wake up to reality…

        I don’t want T-Mobile to go, Their prices are cheaper than competitive prices and you can name all the great benefit that t-mobile has to offer to it customer… which we all love (that’s not being offered by other carriers)

        But ever since AT&T wants acquire T-Mobile… you do know how their customer services? Do you notice that T-Mobile is losing customer (the past 1-2 quarters)?… and all these other changes happening?

        Seriously, be reasonable instead of being defensive.

        • http://www.facebook.com/people/Wally-SirFatty/100002167236858 Wally SirFatty

          Learn to formulate a sentence that is readable.

        • Anonymous

          Thanks for your advice, but This isn’t English class so try harder next time.

        • H8stylist

          it isn’t english class, that is correct.  however, english class is only where you go to learn how to express yourself to others correctly and intelligently.  if you want others to take you seriously, then you need to learn to express your thoughts seriously.

        • Anonymous

          Oh really…?

          So i posted that “This doesn’t look to good for T-Mobile. They need to fix themselves before Its too late.” in my first reply to this topic isn’t clear enough, then I think people just need to sit down and think of the issues of what t-mobile going through at the moment. I don’t need to elaborate what’s going on and so. If you don’t see the picture then that’s your problem and not mines. We know T-Mobile isn’t doing quite well & that’s probably a reason why DT is selling T-Mobile.

          Don’t come to me with all this BS (with most of these non sense reply, replying to my post). If you’re been up with this website, you surely know what’s going on.

          All these other new bullshiet replying to me will be ignored after this. Thanks everyone for entertaining me. :)

        • The ATL Guy

          Did ATT pay you to defend the merger?
          Are you an employee of ATT?
          Are you part of the secret group of JEEEEEWS that secretly control the entire world?
          Where were you when Kennedy was assassinated?

        • HonestyCorner

          David and Andrew: Please delete the above antisemitic comment and ban the user from your forums.  Not interested in coming to a site that tolerates bigotry.

        • Anonymous

          Oh really…?

          So i posted that “This doesn’t look to good for T-Mobile. They need to fix themselves before Its too late.” in my first reply to this topic isn’t clear enough, then I think people just need to sit down and think of the issues of what t-mobile going through at the moment. I don’t need to elaborate what’s going on and so. If you don’t see the picture then that’s your problem and not mines. We know T-Mobile isn’t doing quite well & that’s probably a reason why DT is selling T-Mobile.

          Don’t come to me with all this BS (with most of these non sense reply, replying to my post). If you’re been up with this website, you surely know what’s going on.

          All these other new bullshiet replying to me will be ignored after this. Thanks everyone for entertaining me. :)

        • H8stylist

          it isn’t english class, that is correct.  however, english class is only where you go to learn how to express yourself to others correctly and intelligently.  if you want others to take you seriously, then you need to learn to express your thoughts seriously.

  • Anonymous

    This doesn’t look to good for T-Mobile. They need to fix themselves before Its too late.

  • dvd37

    I use to work at radioshack, we had a huge issue with fraud among employees, I bet T-Mobile fraud goes down 80% lol

  • dvd37

    I use to work at radioshack, we had a huge issue with fraud among employees, I bet T-Mobile fraud goes down 80% lol

  • Mark

    Radio Shack is/was at their best selling geek stuff: capacitors &
    resistors, Archerkits, those old 150-in-1 electronics project toys,
    shortwave radios, etc.  Trying to become a cell phone kiosk with a storefront was a silly idea.

  • Halo

    Good move RS!
    LEAVE THE SINKING SHIP!

    • Bootlegger2323

      Ya like radio shack is not a sinking ship with their high prices, stupid employees, and ridiculous return policy in which they have to take a bunch of personal info

  • http://twitter.com/hoorayitsjordan Jordan B

    thats like when circuit city tried to rebrand as “the city”

  • Halo

    Can’t wait to hear about tmobiles devastating Q2 loses.

  • Sam

    Sucks, T-Mobile is a very good carrier, why they get a bad rap is beyond me.

  • JimHatson

    If Radio Shack carries AT&T, it won’t belong before “T-mobile” is back in.

  • Juliolopez Los Angeles

    Tmobile is just a struggling carrier that continues to fall and every other entity is taking notice. I predict that the brand will be obsolete by the end of 2012 due to low profit and the merger with AT&T. As for Radioshack’s continued business path, they will continue to have their up and downs but unlike Tmobile they always find a way to continue growth.

  • Juliolopez Los Angeles

    Tmobile is just a struggling carrier that continues to fall and every other entity is taking notice. I predict that the brand will be obsolete by the end of 2012 due to low profit and the merger with AT&T. As for Radioshack’s continued business path, they will continue to have their up and downs but unlike Tmobile they always find a way to continue growth.

  • Juliolopez Los Angeles

    Tmobile is just a struggling carrier that continues to fall and every other entity is taking notice. I predict that the brand will be obsolete by the end of 2012 due to low profit and the merger with AT&T. As for Radioshack’s continued business path, they will continue to have their up and downs but unlike Tmobile they always find a way to continue growth.

  • Kyle Phillips

    I went to radioshack for my upgrade like 6 months ago, Tmobile and other stores wanted $200-$250 for a Vibrant and mytouch 4g with a full upgrade and radioshack had them for $35 and $55. I’m pretty disappointed in this because radioshack seemed to have the cheapest prices for full upgrades.

    • Tmobilelimited

      And they blame tmobile for the profit loss. I am a tmobile dealer (owner of a tmobile limited STORE) and I know how much those phones cost so when they sell those phones to you at those prices they’re losing money. They undercost the competition to try and gain sales but those aren’t profitable sales. That’s why you’ll see the samething happen with walmart. They will also stop selling tmobile because they lose a ton of invested inventory and the commissions don’t balance out.

  • Th3juic3man1

    when it all boils down Tmobile SOLD US OUT!!!!!  i had them since 2003 and i feel very played now.

  • Th3juic3man1

    when it all boils down Tmobile SOLD US OUT!!!!!  i had them since 2003 and i feel very played now.

  • Th3juic3man1

    when it all boils down Tmobile SOLD US OUT!!!!!  i had them since 2003 and i feel very played now.

  • Bootlegger2323

    Radio shack sucks anyway

  • Ihatethejews

    Anyone who has a post under this is a flaming butt pirate…

  • josefrontanez

    How dare they say that TMO caused their finacial problems are they on drugs or something? ,Radioshack the first you should blame your problems on is 40-50 dollars for earphones that I can get on Sears,Walmart or even walgreens for 8 dollars!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!,an Xbox 360 game for 70 dollars while on Gamestop is 30 dollars NEW.Come on for those prices NO one will buy anything,next thing they will carge you for going to the bathroom.Have they thought that no one (inteligent people) wants Verizon hey its your choice if you want to pay 120 montly for slow 2g cdma,FIRST MISTAKE DOING A CONTRACT WITH THE DEVIL OH SORRY I MEANT AT&T SECOND INSULTING TMO LIKE THAT AND ISULTING MY WOMAN CARLY I KEEL YOU AND THIRD IS DOING A CONTRACT WITH HITLER/SADDAM/OSAMA/THE DEVIL OH SORRY I MEANT TO SAY VERIZON

  • josefrontanez

    How dare they say that TMO caused their finacial problems are they on drugs or something? ,Radioshack the first you should blame your problems on is 40-50 dollars for earphones that I can get on Sears,Walmart or even walgreens for 8 dollars!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!,an Xbox 360 game for 70 dollars while on Gamestop is 30 dollars NEW.Come on for those prices NO one will buy anything,next thing they will carge you for going to the bathroom.Have they thought that no one (inteligent people) wants Verizon hey its your choice if you want to pay 120 montly for slow 2g cdma,FIRST MISTAKE DOING A CONTRACT WITH THE DEVIL OH SORRY I MEANT AT&T SECOND INSULTING TMO LIKE THAT AND ISULTING MY WOMAN CARLY I KEEL YOU AND THIRD IS DOING A CONTRACT WITH HITLER/SADDAM/OSAMA/THE DEVIL OH SORRY I MEANT TO SAY VERIZON

  • TMoFan

    That’s too bad, but I’m sure this crazy sellout played a part in their decision. I’ve had such a positive experience with T-Mobile. It’s sad to see the company in the situation that it’s in.

  • zoom_zoom

    To TMO comments “YEAH Right”;)

  • Tmobile

    Radioshack sucks! I work for tmobile and those idiots mess up customers accounts cause of lack of training and we end up fixing the problems they create. They’re in loss because they offer high end phones fir cheap and can’t right fit the customers needs and end up in a loss themselves for the customers deacting within 121 days. Hopefully this means a loss of tmobile from target too since their cell phone place is “The Shack” too. Thank god we wont deal with their crap any more.

    • TMOTECH

      And we (T-Mobile) allowed all of this to go on. I blame T-Mobile for the failure. I don’t know why they think that “authorized” dealers are good for customers. They tend to be less knowledgeable at best and straight up liars to make sales at worst. Either way it is bad business. 

      • Eric C

        not all authorized dealers are bad… id like to let you know im part of a tpri location and were very ethical and very knowledgable and were part of tmobiles #1 authorized dealer, so before you make such harsh statements make sure to really know what your talking about.. i think its fair to say theirs idiots in tmobile corp stores as well, and i know this because i fix their issues and keep their business for my store..

        • Mark

          I had a Premier-level authorized dealer near me; they closed suddenly about a month ago.  The closest company location is 50 miles away.  I wish they’d open a company store here!

        • Mark

          I had a Premier-level authorized dealer near me; they closed suddenly about a month ago.  The closest company location is 50 miles away.  I wish they’d open a company store here!

  • Joe College

    Flexpay took Radio Shack down everybody hated dealing with flexpay even the people who worked for T-Mobile hated flexpay. If I worked at RS I wouldn’t sell flexpay to customers or deal with their bullshit on the phone, no wonder RS reps. sold Sprint to potential new buyers it was a better experience for the reps and customers.

  • Anonymous

    im glad tmobile wont be in radio shack anymore.  I wont have to clean up their mistakes they make on customers accounts anymore.

    • 1234

      dothead help