News by Andrew Kameka on Thursday February 28, 2013.
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Leap Wireless began selling the Apple iPhone 5 in September 2012, but the company's Cricket wireless brand has struggled to attract customers to the phone, which is sold for $500 that must be paid up front. The Wall Street Journal reports that Leap is currently on pace to sell only half of the smartphones it committed to purchase in the first year of its contract with Apple. That's bad news for the prepaid carrier because it has to purchase a set number of iPhones from Apple regardless of how many it sells to customers, which means Leap could end up with $100 million of unsold inventory by June.
High costs were not the only hurdle to Cricket selling the iPhone. The limited availability of its network greatly reduces the pool of potential customers, and overall customer additions were lower than anticipated. Leap CEO Jerry Elliot said last week that the company is "not concerned" about meeting its commitment to Apple, and the company plans to increase sales with new marketing campaigns and finance options to make the iPhone more appealing to Cricket customers.source: Wall Street Journal
Andrew is based in Miami, Florida.