RadioShack, who I refuse to call The Shack no matter how many PR dollars they invest, announced their second quarter earnings today and included this little bombshell:
“Net income in the 2011 second quarter included one-time costs associated with two initiatives designed to enhance growth and streamline operations: a charge associated with phasing out T-Mobile inventor…”
and then this gem:
“As disclosed in a separate announcement issued today, the Company has entered into an agreement with Verizon Wireless to provide postpaid and prepaid wireless products and services in more than 4,300 RadioShack U.S. company-operated stores beginning Sept. 15, 2011. In addition, effective Sept. 14, 2011, the Company will cease offering T-Mobile wireless products and services in its U.S. company-operated stores. “
This is a bit more than the business world version of changing one’s relationship status on Facebook. As much as you or I might avoid RadioShack like the plague nine times out of ten (that tenth time being when we can score a really good deal on a cell, and we do that online anyway), they have a pretty impressive presence in the brick and mortar segment, especially in smaller locations where other electronics dealers wouldn’t fit. For example, I can’t imagine squashing a Best Buy into New York’s Port Authority bus terminal, but there’s a RadioShack.
T-Mobile swiftly responded, insisting the split was mutual. However, considering the first quarter ended with Radio Shack outright blaming T-Mobile for their poor performance, I don’t really see that as likely.
Then RadioShack takes this dig at T-Mobile on Facebook:
Not exactly letting the funeral meats get cold, eh Radio Shack?
I doubt T-Mobile is weeping. If anything, this is yet another reason why the proposed merger with AT&T is good for them, as it gets them right back in there. I don’t know if this is necessarily good for consumers, mind you, but it’s good for T-Mobile.
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