Cell Phone Shack?

Posted by Al Lewis on January 26, 2011
Fat Cats, Retailing, Survey Said ...

Maybe RadioShack should have changed its name to Cell Phone Shack.

The Fort Worth, Texas,-based retailers seems to have made a big bet on selling cell phones that are available just about everywhere.

Now margins on cell phones are shrinking. And guess what?

RadioShack’s warning of disappointing fourth-quarter earnings.

It’s chairman and CEO Julian Day is stepping down in May.

Go figure.

RadioShack’s problem – besides intense competition, a prolonged downturn in the economy, etc. – is that nobody knows what it is anymore.

Click here to read my column.

When was the last time you went to RadioShack? What did you buy?

4 Comments to Cell Phone Shack?

kathleen r. kimble
January 26, 2011

Last time I shopped at Radio Shack was about 6 months ago, to purchase 2 sets of headphones that have a built-in AM/FM radio. Called all over town. They were the only place that carried radio headphones, tucked way in the back of the store that was primarily an internet-connection and cell phone business, for sure.

TanMan
January 26, 2011

Radio Shack used to be where I went for electronics when I built my own stuff. But that’s something hardly anyone does anymore, and when they do, the internet has it for cheaper.

The last time I went was when I needed a 2-line to (2) 1-line modular RJ-11 splitter. I needed it in a hurry, so I went to Radio Shack. They had it, but it was almost $15! I could buy that piece on-line for under $5 (including shipping), or from China for about a buck.

That’s why Radio Shack sells cell phones.

Howard
January 27, 2011

The price of cell phones has fallen since prepaid companies like Straight Talk started making them really cheap. I cannot feel sorry for those companies that are now loosing out. They had their years of ripping us off

Denver Todd
January 30, 2011

I have visited Radio Shocked twice in the last year, both times to purchase a charger (I wanted two) for an electronic component at work. My own company couldn’t fix me up with the charger, but RS has a system where you buy the charger in the right voltage, and they connect an adapter to it so that it is the right size. And the story gets better: when I went the second time for another one, they actually were able to look up the first purchase and match it exactly, because I didn’t have the product with me.