Cricket Wireless Sees iPhone Sales Plummet
February 28, 2013 8:21 AM
comment(s) - last by
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
This article is over a month old, voting and posting comments is disabled
Hard for them to compete with the fraud they allow to occur
2/28/2013 3:31:50 PM
A big reason they aren't selling enough iPhones is due to the fact that they allow devices to be flashed to their network. A significant amount of fraud in my store is people using credit mules to purchase sprint iPhones and then never paying the bill. Within a few days the phones are flashed to cricket and sold on Craigslist cheaper than Cricket themselves. As long as Cricket allows this practice, they will have a tough time competing with fraudsters.
RE: Hard for them to compete with the fraud they allow to occur
2/28/2013 7:22:34 PM
This is quite true. All those poor people with iPhones that the Right likes to complain about are actually buying 'pre-used' devices on the secondary market and activating them on Cricket or MetroPCS. Some know that they are stolen, others do not.
"DailyTech is the best kept secret on the Internet." -- Larry Barber
Apple Earnings Worry Investors; Stock Falls 10 Percent
January 23, 2013, 7:06 PM
As T-Mobile Moves to End Smartphone Subsidies, Verizon CEO Says "Not so Fast"
January 7, 2013, 3:36 PM
Quick Note: Samsung's Request to Dismiss Microsoft Lawsuit is Rejected
November 20, 2014, 12:53 PM
Amazon Offers "The Washington Post" Free for Six Months to Kindle Fire Owners
November 20, 2014, 7:41 AM
Apple Watch Screen Resolution, App Limitations are Laid Bare by Developer Kit
November 19, 2014, 11:31 PM
Apple Replaces “FREE” Label with “GET” on App Downloads in iTunes App Store
November 19, 2014, 5:38 PM
Nokia Lumia 635 LTE Windows Phone is Only $40 at Best Buy on Black Friday
November 18, 2014, 11:59 AM
Samsung to Slash Number of Smartphone Models by 30 Percent in 2015, Reduce Costs
November 18, 2014, 10:00 AM
Most Popular Articles
Austrian Pilots Call Surface 3 Pro Flight Bag a "Dream Come True"
November 14, 2014, 2:00 PM
U.S. Marshals Using Fake, Airplane-based Cell Towers to Scan Cell Phones of Americans
November 14, 2014, 9:05 AM
Microsoft: All* Lumias Will Get Windows 10; Adds Real-Time Battery Live Tile
November 13, 2014, 6:32 PM
Nokia Explores Two Paths Back to the Smartphone Market
November 14, 2014, 9:05 PM
Google Initiates Rollout of Lollipop Updates for Nexus 5, 7, and 10
November 12, 2014, 4:15 PM
Latest Blog Posts
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information