So, at the end of 2005 RadioShack dumps its retail relationship with Verizon Wireless, a company who, despite being #2 in the industry, is currently #1 in the number of subscriber additions for the last four quarters. RadioShack then replaces Verizon with Cingular who, after getting to the #1 spot the old fashioned way (they bought their customers through merging with AT&T Wireless) has been almost dead last in subscriber adds for three of the last four quarters.
RadioShack probably figured that it was because of them that Verizon got such stellar subscriber adds, and that Cingular’s fortunes would turn once the deal took hold.
But nope! The new figures are in. Verizon wireless still has stellar subscriber additions without much of RadioShack’s help, ourperforming Cingular. And how did RadioShack do? Wellll……
NEW YORK (Reuters) – RadioShack Corp. (RSH.N: Quote, Profile, Research), whose chief executive has admitted to lying on his resume, on Friday said quarterly profit fell 62 percent after a switch in wireless providers led to an inventory write-down, sending its shares to a nearly three-year low.
The consumer electronics retailer, which said it was hiring legal counsel to investigate the admission by CEO David Edmondson, also announced a new turnaround plan that includes closing 400 to 700 company-operated stores and liquidating slow-moving inventory.
The company said it was “unwise” to issue earnings forecasts for 2006 given the uncertainty of the turnaround plan, which could cost up to $100 million.
Yeowch! So it’s safe to say that RadioShack had this “because of us” menatility all wrong.
