Nayas Admits Errors, Promises to Be Honest Going Forward, Switches to Verizon

So that sounds like VZW dropped RS as a channel partner. It sounds like VZW was willing to pay the higher costs of using RS as a channel until they grew enough that it was no longer worth the cost for the added growth?

-Quick

Most accounts are that Radio Shack dumped Verizon, not the other way around:

"RadioShack Dumps Verizon, Adds Cingular"

"RadioShack dumps Verizon for Cingular"

"Radio Shack To Ditch Verizon for Cingular"

"Radioshack Dumps Verizon for Cingular"

"RadioShack Dials Into Cingular, Sprint, Nextel, and Hangs Up On Verizon"

Verizon was one of Radio Shacks products. As such, it would be more appropriate to say in a headline that Radio Shack dumped one of it's products, rather than the product dumped Radio Shack. I doubt if Verizon wanted to reduce it's in-store presence, but I can see that Verizon might have gotten greedy (or Radio Shack could have gotten greedy) regarding the markup they would allow Radio Shack (and keep Radio Shack competitive selling Verizon in the marketplace - or in other words make the shelf space in Radio Shack worth it to Radio Shack to keep selling Verizon).

So saying that Radio Shack dumped Verizon in a headline may not tell the real story.

John, Have you heard whether or not cingular will be renamed to AT&T after the Atlanta take over?

fundamentalism, fundamentally wrong.

While I haven't heard anything definitive, I think it's a good bet that Cingular will be renamed to (the new) at&t if and when the merger is completed.

Since the industry magazines were talking about the advantages the brand recognition factor of AT&T over Cingular, its a pretty good bet the name and orange jumping jack guy will go.

Have you noticed on the AT&T website, the harsh look of the their "Deathstar" (Star Wars) logo was replaced by a more friendly jumping jack ball logo?

Shows how dumb 20-something marketing "experts" can be, trading the value of strong and well-established branding for a trendy new look that will look dated in no time.

Either that or Verizon (like many corporations) is just trying to spin a bad situation as positive, to lessen the negative PR impact.

How do you know it was a 20-something marketeer who decided on the logo change? Do you have any evidence to support that claim or is it just "gut feel"?

-jav

Complete fantasy!

You mean they aren't going back to the blue bell?!?!? I think maybe I should plan to attend the next shareholders meeting (wonder if you can get inside if your own one lot ).

fundamentalism, fundamentally wrong.

Not much experienece with the advertising world, when you're thirty (if you aren't senior management or out on your own) you're through.

fundamentalism, fundamentally wrong.

I can't imagine Verizon cares one way or 'ther what happens to Radio Shack. What I wonder is if AT&T when the bellsouth aquisition is complete will set eyes on the last baby of significance. Also this one would be a parlay into Europe.

fundamentalism, fundamentally wrong.

Say what? Radio Shack is probably the biggest cellular distribution operation in the USA. Replacing those sales won't be easy.

Reminds me, gotta add "nayas" to my filters. . .

Not even close. Try again and use facts this time. Can you say Brightpoint?

Bigger than Walmart? Best Buy? Try again, Novice.

Remember that much of Radio Shacks business was in contract renewal, not in new sales. And even when it was in new sales, the customer had already decided which carrier to go with, and was simply looking for the best deal, or the most convenient location at which to buy.

The sales that Verizon lost are the ones where the Radio Shack sales person is able to convince the customer to change carriers away from Verizon, over to Sprint or Cingular, or the rare new wireless customer.

No doubt that Verizon would have more net additions with Radio Shack than without it. But the cost of these additions was not worth acceding to Radio Shacks demands.

Furthermore, as Radio Shack continues to close stores, their value as channel decreases. They're closing 480 stores this year, a little less than 10% of their company-owned stores.

Just a random anecdotal data point.

It seemed that when I visited the Radio Shack store nearest to my house, I was the only one buying non-cellular phone products. The rest were milling about the cell phone displays, asking questions about cell phones, buying cellphones and calling plans, buying cellphone accessories, etc.

What do people buy at The Shack these days? I used to go for parts, tools, browse their sometimes interesting books on electronics projects, etc.

-jav