Visit the New Technabob Shop!Get Technabob in Your Mailbox! Join our Mailing List! | Follow Us: Facebook | Twitter
Awesomer Media Sites: THE AWESOMER | MIGHTYMEGA | 95OCTANE
subscribe to our rss feedsubscribe via e-mailfollow technabob on twittertechnabob facebook fan pageGoogle+follow us in feedly
Follow Us:

iPhone Not Selling Well for Leap Wireless

by Shane McGlaun

There were a lot of people who were excited when prepaid wireless carrier Leap Wireless, who operates the Cricket Wireless mobile phone brand, announced that it would be offering the iPhone 5. I think a bunch of people forgot that carriers like AT&T and Verizon offer big subsidies to get people to purchase the phones and sign up for new contracts. A network like Cricket Wireless that offers no subsidies requires you to pay for the entire device up front.

iphone_image

In the case of Leap Wireless and Cricket Wireless, that meant users needed to pay at least $500 for an iPhone 5. Many of the customers who shop prepaid carriers are looking for no contract and budget phones. It never seemed likely to me that they’d be willing to cough up $500 for a smartphone. It appears I was correct because Leap has announced that it believes it may end up with $100 million worth of unsold iPhones by the middle of 2013.

The company says that it is on pace to sell only half the number of iPhones that it committed to sell during the first year of its Apple contract. That contract is set to end in June and the poor sales comes despite the fact that Apple previously allowed the wireless carrier to sell the iPhone at a reduced price when compared to unlocked iPhones. Leap’s inability to sell the iPhone could make some of the national carriers such as Verizon and AT&T seriously reconsider their plans to reduce any subsidies on smartphones.

[via WSJ]




Comments are closed for posts older than 90 days.

Comments (1):

  1. Fred Willey says:

    Yea, $500 bucks for a phone is expensive. But it’s more than just the cost of the phone when it comes to a carrier like Cricket. I’m not spending $500 dollars on a phone to put on a subpar network like Cricket. Example, roaming is an “add-on” to your plan with Cricket, it costs extra. Other prepaid providers, depending on who’s network you’re on, you can go all over; it’s automatically included with your plan. Cricket has a bad reputation for quality, dropped calls, can’t connect, the list goes on. If I’m spending $500 iPhone you can believe it’s going on either an AT&T MVNO or possibly a T-Mo MVNO. Not Cricket, that’s if I want to be able to use all the features the phone has to offer.

Our Latest & Greatest Posts...

Micro LEGO Computer Has Stackable Modules: NUCs and Bricks

Micro LEGO Computer Has Stackable Modules: NUCs and Bricks

Gnarbox Portable Video Editing Computer Turns the iPhone into a Dumb Terminal

Gnarbox Portable Video Editing Computer Turns the iPhone into a Dumb Terminal

Deal: Coding for Entrepreneurs Bundle

Deal: Coding for Entrepreneurs Bundle

Dancing Baby Groot Mug Wants Your Coffee Black

Dancing Baby Groot Mug Wants Your Coffee Black

Yaskawa Motoman Industrial Robot Cooks an Egg Sandwich

Yaskawa Motoman Industrial Robot Cooks an Egg Sandwich

Win Prizes in the Technabob Shop

More from Awesomer Media...

The Awesomer Logo MightyMega Logo 95octane Logo
discussion by