Friday, June 24, 2011

RadioShack gives Verizon another go

RadioShack is changing things up as it struggles to see positive growth. Today it was announced that "The Shack" will once again carry Verizon Wireless at it's 1,100 independent Radio Shacks.

2005 was the year that RadioShack stopped selling Verizon Wireless but now wireless has become more of what makes up RadioShack's revenue forcing the electronics store to focus more mobile. RadioShack already carries AT&T, Sprint, and T-Mobile. However when RadioShack reported a 30 percent drop in net profit on their first quarter earnings report the fingers pointed at T-Mobile because of sluggish sales.

In 2008 RadioShack reported that 29 percent of sales came from mobile, but last year that number quickly went to 47 percent. With mobile counting for almost half of RadioShack's profits it's no wonder why they would want to add the nation's largest wireless carrier to their line. Verizon Wireless added 1.8 million customers in it's first quarter while T-Mobile lost 99,000.

RadioShack is being dropped from the S&P500 index.

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