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iPhone Shortages Not Helping RadioShack as Consumer Sales Plummet

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As a longtime key retail partner for Apple, RadioShack is once again offering the iPhone this holiday season, but finding the phone on the retailer's shelves may be difficult, reports Mitch Nolen for Seeking Alpha. According to Nolen, RadioShack stores nationwide are reporting massive shortages in iPhone units with most models not available in stores during the important holiday shopping season.

radioshack_logo.png
RadioShack currently advertises the iPhone on its website with no ability to purchase the phone online. Users instead are directed to find a RadioShack store to purchase a unit, but many stores do not stock the iPhone, offering only a "Ship To Store" option that takes several days to fulfill. This method of inventory is markedly different from competitors like Best Buy, which sell the iPhone online, in-store and via an in-store pickup option.

RadioShack franchise owner Gary Mahan claims his sales have plummeted 30 percent year-over-year due to declining stock, with a major lost opportunity this Black Friday.
Mahan believes that if he had received the iPhone 6 and 6 Plus, his one store on the Oregon coast could have made an extra $1,000 in profit over the Black Friday weekend, which would have been a happy holiday gift for him, he says. He couldn't speculate how that $1,000 in lost profit opportunity might extrapolate to other stores in RadioShack's chain of 5,387 corporate-owned and franchised locations.
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The reasons for low inventories aren't clear, as Apple and other partners have managed to maintain some store supplies even amid high demand, but RadioShack's shortages may be due to the retailer's tenuous financial position. The company is close to being delisted from the New York Stock exchange and may be forced to file for Chapter 11 bankruptcy to protect it from its creditors.

RadioShack's cash on hand at the end of last quarter had fallen to just $30 million, down from $440 million a year earlier and leaving the company unable to afford shutdown costs involved in a planned closure of 1,000 stores.

To minimize risk as its cash dwindles, the retailer may be reducing standing inventory and changing to an on-demand model that supplies devices when customers order them in store. Apple also may be withholding inventory, opting to ship its popular iPhone models to retailers with higher-volume sales.

Article Link: iPhone Shortages Not Helping RadioShack as Consumer Sales Plummet
 
Article Link
https://www.macrumors.com/2014/12/02/radio-shack-iphone/
Isn't Radio Shack essentially a "Dead Man Walking" anyway.... times they have a'changed.... Can't blame Apple...
 
Radio Shack is going into its sunset. I'll bet 2015 is the year things really start to shut down, Blockbuster Video style.
 
A minimal short term sales spike like the iPhone being in stock over Black Friday isn't going to make your business work.

That's like a restaurant saying they wish they had an additional 5 tables available the one day a year they actually have a wait.
 
Mahan believes that if he had received the iPhone 6 and 6 Plus, his one store on the Oregon coast could have made an extra $1,000 in profit over the Black Friday weekend, which would have been a happy holiday gift for him, he says.
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Is this a joke? Radio Shack's problem is not a paltry $1000 of lost profit (i realize this is just one franchise), it is that they no longer know what their stores are trying to be.

Are they mini Best Buys? Do they specialize in Cellular gadgetry? Do they specialize in Toys? Do they still even sell radios?

Consumer electronics is a crowded market these days. I miss the Radio Shack of old that was the best place in town to get specialized electronics for the hobbyist or the professional. I'm talking stuff that you make other stuff with. Transistors, LEDs, cables. This kind of stuff is hidden like embarrassing inventory that the folks who work there try to avoid selling.

Don't get me started.
 
Radio Shack was doomed when they became just another consumer electronics outlet, rather than staying true to their roots as a electronic parts supplier. Yes, times have changed.
 
coolfactor said:
Radio Shack was doomed when they became just another consumer electronics outlet, rather than staying true to their roots as a electronic parts supplier. Yes, times have changed.
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It was an exciting place in my childhood, when it was anchored by the Tandy computer line. Truly great and unique stuff.
 
I stopped by the Canadian RadioShack (aka The Source) on Black Friday and noticed that their iPhone/iPad accessories were priced $10-20 above Apple's prices. Not sure why anyone would shop there.
 
TsunamiTheClown said:
Is this a joke? Radio Shack's problem is not a paltry $1000 of lost profit (i realize this is just one franchise), it is that they no longer know what their stores are trying to be.

Are they mini Best Buys? Do they specialize in Cellular gadgetry? Do they specialize in Toys? Do they still even sell radios?

Consumer electronics is a crowded market these days. I miss the Radio Shack of old that was the best place in town to get specialized electronics for the hobbyist or the professional. I'm talking stuff that you make other stuff with. Transistors, LEDs, cables. This kind of stuff is hidden like embarrassing inventory that the folks who work there try to avoid selling.

Don't get me started.
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Very true... yet that 'stuff' is the sole reason I ever go there... well that and some weird connector doohickey that nobody else has and I don't want to wait for online... (hope you're listening RS)
 
RadioShacks are kind of worthless, and I see no reason to really set foot in one. They aren't a Best Buy, or a Walmart. They are overpriced, and the employees are none too bright, even suggesting batteries for a wireless router.

I think they just need to fold over while they still at least have some dignity.

As for hobby stuff, I don't even know I'd they even sell anything anymore. When I do step in one, I see phones, iPads and stuff. The cool stuff was taken out eons ago.
 
Is there anything that isn't ever Apple's fault? If someone can find a way to tie in Apple to generate those clicks they'll do it.
 
Optimus to the Rescue!

No worries Radio Shack, the Optimus Version of the Iphone will save you!
 
WestonHarvey1 said:
It was an exciting place in my childhood, when it was anchored by the Tandy computer line. Truly great and unique stuff.
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Me as well.... Loved going there.
Is this really limited to just Radio Shack though? Every time I ask a Verizon store employee if they have any in stock, their response is always "30 days".
 
I remember when Radio Shack asked for your home address and phone number every time you went in for a pack of AA batteries, and I mean every time. :)

R.I.P. Radio Shack. You'll be missed.
 
It's amazing that RadioShack is still around since nobody ever goes to RadioShack unless they need an obscure battery or cable once every two years. When I walk by at the mall I always see a bunch of employees goofing off in there with no customers. How do they pay them? Did they make a ton of money in the 80s that they're still surviving on? It's also probably not a good idea to base all of your profits on selling one phone. Really? You can't get stock of one phone and now your sales are down 30%?

TIL that Apple has been keeping RadioShack on life support.
 
"RadioShack franchise owner…"

Saddest job title ever.

How in the world is RadioShack even still in business?
 
I want radio shack to do better :(

They are the only local electronics shop is my area aside from GameStop, not counting Walmart and target.

Best buy is 40 minutes away, end up ordering online instead.
 
Rogifan said:
Is there anything that isn't ever Apple's fault? If someone can find a way to tie in Apple to generate those clicks they'll do it.
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In all seriousness.... Would you (or anyone that makes this statement... which is quite often) really prefer that this site only post an article when it is 100% apple only news? so perhaps 5-10 articles a year, when new products launch? Wouldn't that be such a great website to visit? /s. I mean, people aren't happy with articles that just touch upon apple. They don't like rumors for various reasons. They don't like stories about software. Ugh... Glad I don't have to write stories here.
 
TsunamiTheClown said:
Is this a joke? Radio Shack's problem is not a paltry $1000 of lost profit (i realize this is just one franchise), it is that they no longer know what their stores are trying to be.

Are they mini Best Buys? Do they specialize in Cellular gadgetry? Do they specialize in Toys? Do they still even sell radios?

Consumer electronics is a crowded market these days. I miss the Radio Shack of old that was the best place in town to get specialized electronics for the hobbyist or the professional. I'm talking stuff that you make other stuff with. Transistors, LEDs, cables. This kind of stuff is hidden like embarrassing inventory that the folks who work there try to avoid selling.

Don't get me started.
Click to expand...

No, please, get started - I want to see where this goes because so far you are spot on.
 
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