Cool Gadgets, Gizmos, Games and Geek Stuff on Technabob
VISIT OUR OTHER SITES: THE AWESOMER | 95OCTANE

Technabob is reader-supported. When you buy through links on our site, we may earn an affiliate commission.
As an Amazon Associate I earn from qualifying purchases. Learn more.

iPhone Not Selling Well for Leap Wireless

by Shane McGlaun
Advertisement

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]



Fabric Portraits by Benjamin Shine

Fabric Portraits by Benjamin Shine

Fill-in Filmography Print

Fill-in Filmography Print

Wonderwall: 80s Edition

Wonderwall: 80s Edition

Advertisement
An Eleanor Mustang from “Gone in 60 Seconds” Is for Sale

An Eleanor Mustang from “Gone in 60 Seconds” Is for Sale

Ann Arbor, Michigan Police Adding Mustang Mach-Es to Their Fleet

Ann Arbor, Michigan Police Adding Mustang Mach-Es to Their Fleet

Pagani Huayra R Is Getting a Naturally-aspirated V12 If Our Ears are Correct

Pagani Huayra R Is Getting a Naturally-aspirated V12 If Our Ears are Correct

Advertisement