Cricket Wireless Sees iPhone Sales Plummet
February 28, 2013 8:21 AM
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Carrier could have $100 million worth of unsold iPhones by midyear
The iPhone 5 has been a
for most carriers around the world. However, Cricket Wireless – the no contract prepaid network operated by Leap Wireless -- isn't having luck selling the iPhone 5 and is seeing stock levels climb as consumers opt for other devices.
Leap Wireless says that it believes it will sell about half as many iPhones as it committed to sell during the first year of its contract with Apple, which ends in June. Leap Wireless believes that the poor sales could leave it with as much as $100 million worth of unsold iPhones by the middle of 2013.
Leap Wireless has 5.3 million subscribers and areas where it can sell the iPhone are limited by its limited network coverage. Leap was the first of the major prepaid carriers in the US to offer the iPhone last year.
Perhaps the biggest challenge facing Leap Wireless and other prepaid carriers who offer the iPhone is one of cost. While carriers that require a contract, such as AT&T and Verizon, are able to
subsidize the cost of the iPhone
making it significantly cheaper up front, Leap charges the full retail price of $500.
Considering that pre-paid carriers tend to attract customers shopping on a budget coming up with $500 could be a stretch for many subscribers leading them to “cheaper”, subsidized phones.
Wall Street Journal
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2/28/2013 2:08:54 PM
The vast majority of people on services like Cricket are those on welfare and illegals.
People without jobs can certainly buy cell phones. They take their EBT cards, buy groceries, then sell the remaining value for cash. There is so much fraud and abuse in the system its unreal.
2/28/2013 7:17:10 PM
There actually is a subsidized wireless program, but not for smartphones. It is part of the Lifeline program, started by Reagan. It is paid for by a national user fee (which everyone else pays).
2/28/2013 7:28:03 PM
I'm sure you feel pity and not anger for anyone that sells their food stamps, right? I mean you can't possibly be mad at someone that lives at the bottom of the barrel and gets just enough food stamps to buy $5 of food a day for themselves. That they are in such a dire situation that they would dig themselves deeper by selling some of their $5/day food stamps for other things to make them feel better or whatever reason.
I pitty them. Life is more precious than worrying what others are doing with their terrible lives.
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