• Apple's iPhone Shortages Continue to Make Things Difficult for RadioShack



    According to Mitch Nolen of Seeking Alpha, RadioShack, which has been a longtime key retail partner for Apple, has been reporting massive shortages in iPhone units with most models not available in stores during the crucial holiday shopping season. For those of you who didn’t already know, RadioShack currently advertises the iPhone on its website but doesn’t allow anyone to purchase the phone online. Users are instead directed to find a nearby RadioShack store to purchase a unit but most stores don’t even have the iPhone in stock and currently offer a “Shop to Store” option that takes several days to fulfill. As many of you probably already know, the method of inventory is much different from competitors such as Best Buy which are offering the iPhone online, in-store and via in-store pickup option.

    RadioShack franchise owner Gary Mahan claims his sales have dropped as nearly as high as 30% year-over-year due to declining stock with a major lost opportunity this Black Friday. The following was mentioned about Mahan and his current situation:

    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.
    One thing that remains a mystery is why the inventories are so low. Apple and other partners have somehow managed to maintain store supplies despite the high demand but RadioShack’s shortages may be due to an issue with the company’s financial position. As of right now, the company is very close to being delisted from the New York Stock Exchange and may be forced to file Chapter 11 bankruptcy to protect it from its creditors.

    The former retail giant’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 help minimize risk as its cash lowers, the retailer may be reducing standing inventory and changing to an on-demand model that supplies devices when customers order them in store. Apple may also stop supplying inventory instead opting to ship its popular iPhone models to retailers with higher volume sales.

    We’ll have to wait and see what ends up happening.

    Source: Seeking Alpha
    This article was originally published in forum thread: Apple's iPhone Shortages Continue to Make Things Difficult for RadioShack started by Akshay Masand View original post
    Comments 10 Comments
    1. exNavy's Avatar
      exNavy -
      Radio shack has far bigger problems than not having the iphone. They aren't a true electronics hobbyist store any more. There's very little do it yourself equipment in their stores.
    1. SpiderManAPV's Avatar
      SpiderManAPV -
      Every time I go in there it's like I've stepped foot in a more expensive lower quality BestBuy.
    1. XweAponX's Avatar
      XweAponX -
      I got my iPhone 4s at my local RadioShack. Even though they don't have a lot of electronic components, they are still the only place to get the most basic needs. That would really suck if they went under.
    1. Carvensno's Avatar
      Carvensno -
      Quote Originally Posted by SpidermanAPV View Post
      Every time I go in there it's like I've stepped foot in a more expensive lower quality BestBuy.
      My thoughts also. Plus they have quit carrying some of the basic electronics and wiring I use to used to repair computers with. Micro switches LED's and etc... Now I have to order stuff online and pay for shipping which costs just about double or triple what the items/components do.
    1. psxcancer's Avatar
      psxcancer -
      Quote Originally Posted by SpidermanAPV View Post
      Every time I go in there it's like I've stepped foot in a more expensive lower quality BestBuy.
      Agreed, they used to be the go to place when you needed a specialized electronics part or something, but most of the time they don't have what you need in stock or it's super expensive. You're better off just buying it online or eBay.
    1. rolandgabor's Avatar
      rolandgabor -
      RadioShack? Who's buying anything in their low quality highly overpriced, stocked with 1990's electronics store?
      Not having iPhones is their smallest problem.
    1. SpiderManAPV's Avatar
      SpiderManAPV -
      Quote Originally Posted by rolandgabor View Post
      RadioShack? Who's buying anything in their low quality highly overpriced, stocked with 1990's electronics store?
      Not having iPhones is their smallest problem.
      You know another company that can't seem to figure out it's no longer in the 90s? RCA. Do they even make things that aren't at least 10 years out of date?
    1. edwilk55's Avatar
      edwilk55 -
      Used to use them back in the day, but that was before I could buy from China/Amazon/local eBayer for 90% less with no sales tax. It's sad, but they just haven't been competitive. Too many locations and a lost identity. Don't really see how they can survive in today's markets.
    1. Truffol's Avatar
      Truffol -
      Radioshack's problems go way beyond iPhone shortages
    1. SinfullyInked's Avatar
      SinfullyInked -
      I blew a fuse on my charger for the gps in my truck . Only place that had it was RadioShack. Not a good store any more
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