Wednesday, February 27, 2013

Leap Wireless struggles to meet iPhone sales commitment as customers head elsewhere

iPhone 5 closeup stock 1020

Leap Wireless is having a tough time selling through the stock of iPhones it committed to purchasing from Apple, reports The Wall Street Journal . Just last week, the company’s COO Jerry Elliott told analysts that Leap (which offers prepaid cellular service through its Cricket Wireless subsidiary) was "not concerned about… meeting the Apple commitment," but it sounds like maybe it should be, since it’s only on track to sell through half of the volume it committed to this year. Under its three-year agreement with Apple, Leap is required to purchase an approximate $800 million worth of iPhones, weighted toward the second and third years. In its 2012 annual report, Leap noted that the size of the commitment only represented "10% or...


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via The Verge - All Posts http://www.theverge.com/2013/2/28/4038944/leap-wireless-struggles-to-meet-iphone-sales-commitment

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