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Cricket/Leap Wireless Reports iPhone Sales Weaker Than Expected

Six months after it started carrying the iPhone, U.S. regional prepaid carrier Cricket reports that it will only purchase half of its first-year commitment of iPhones by June 2013, reports BGR.

Back in June 2012, Cricket started carrying the iPhone 4 and iPhone 4S after committing to buy at least $900 million worth of iPhones from Apple over the life of its deal with Apple. It got the iPhone 5 a week after it launched on the major U.S. carriers.

The carrier revealed that it is on pace to purchase only half of its first-year commitment from Apple through June 2013. The information in the filing contradicts earlier statements made by the company’s chief financial officers Jerry Elliot. The executive previously said that “sales of Apple devices were pretty good in the fourth quarter” and the carrier wasn’t concerned about meeting its commitment with Apple.
Cricket is generally considered one of roughly half a dozen "super-regional" carriers in the United States, with more than 5 million customers. The carrier offers a nationwide network through roaming agreements and its prepaid model offers simple pricing with no activation fees or overage charges.

Top Rated Comments

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19 months ago

I like my iPhone 5...BUT. It is starting to feel stale. Meanwhile, Samsung keeps pushing the envelope with the Galaxy series (Note, S3)....the Lumia's are somewhat interesting, and I'm also curious to check out what the new Blackberry has to offer. I'm not surprised by this type of news, there is a lot of great competition out there now, and we as consumers (not fanboys) all benefit.

EDIT: and yes, who the F is cricket?


Wow, what an original and helpful comment. Totally not just stirring the pot with exactly the same sentiments that get repeated a hundred times in every thread that mentions the iPhone. Well done sir.
Rating: 22 Votes
19 months ago
Well...I guess all they heard were...(puts on sunglasses)...crickets. YYYYYYEEEAAAAHHHHHH!!!!
Rating: 18 Votes
19 months ago
Lol, it's a famous, expensive phone, on a small regional carrier that (let's face it) exists to service people with an income level too low to require or afford a national service plan with a major carrier. We are surprised by this?
Rating: 15 Votes
19 months ago
I like my iPhone 5...BUT. It is starting to feel stale. Meanwhile, Samsung keeps pushing the envelope with the Galaxy series (Note, S3)....the Lumia's are somewhat interesting, and I'm also curious to check out what the new Blackberry has to offer. I'm not surprised by this type of news, there is a lot of great competition out there now, and we as consumers (not fanboys) all benefit.

EDIT: and yes, who the F is cricket?
Rating: 14 Votes
19 months ago

I like my iPhone 5...BUT. It is starting to feel stale. Meanwhile, Samsung keeps pushing the envelope with the Galaxy series (Note, S3)....the Lumia's are somewhat interesting, and I'm also curious to check out what the new Blackberry has to offer. I'm not surprised by this type of news, there is a lot of great competition out there now, and we as consumers (not fanboys) all benefit.

EDIT: and yes, who the F is cricket?


Apple has sold a record number of iPhone 5. This is more of a reflection of Cricket than the iPhone 5.
Rating: 9 Votes
19 months ago

Give the proles filet mignon and they'll demand Burger King. This is the crowd that's happy with $49 Android phones running Froyo.


Oh please. The idea that somehow the iPhone is the toy of the elite is total crap. It's the most common phone I see, in the hands of everyone from schoolkids to technophobe grandparents to street kids who think they are part of G-Unit.

Especially since most contract plans give away the 4 for free now.
Rating: 6 Votes
19 months ago
Wait... so a GHETTO cellular company is having a harder time selling a luxury phone? Strange!
Rating: 5 Votes
19 months ago
Cricket does not sell the iPhone on subsidized contracts and they do not sell it in all their markets. Is it any wonder that the most expensive smartphone would not sell as fast without subsidy? The pricing is Apple's problem -- they don't have a competitive unsubsidized price.

The iPhone 4S is $500 on Cricket if I am not mistaken and Cricket does not even offer the iPhone in my area so I cannot get the price on iPhone 5. So obviously you are going to have problems selling a smartphone if:

1) You don't offer it in all regions of the USA where you have a presence

2) You offer it at full the full unsubsidized price while your competitors are charging far less on subsidy for the same device.

Incidentally, the Galaxy S3 is $379 from Cricket.

UPDATE: The Verge is reporting (http://www.theverge.com/2013/2/28/4038944/leap-wireless-struggles-to-meet-iphone-sales-commitment) that Cricket/Leap actually lost more than 600k subscribers and their attempt to redirect everybody's attention to Apple and iPhone is an attempt to cover the fact that:

A) They are failing to compete with the likes of AT&T, Verizon and Sprint

B) Their over-optimism lead them to over-committing the company in their iPhone contract with Apple.

The CEO is playing "cover my butt" by trying to misdirect everybody's attention on this story. Kudos to Jeff Blagdon at The Verge for calling him on it.
Rating: 4 Votes
19 months ago

I like my iPhone 5...BUT. It is starting to feel stale. Meanwhile, Samsung keeps pushing the envelope with the Galaxy series (Note, S3)....the Lumia's are somewhat interesting, and I'm also curious to check out what the new Blackberry has to offer. I'm not surprised by this type of news, there is a lot of great competition out there now, and we as consumers (not fanboys) all benefit.

EDIT: and yes, who the F is cricket?


Fanboys benefit too whether they like to admit it or not. When Apple is driven to innovate great things happen. When Apple is on top of the world they become stale. The iDevice craze is just Macintosh 2.0. Apple stopped innovating then, fell down a slope, then exploding with great new products.
Rating: 3 Votes
19 months ago

I like my iPhone 5...BUT. It is starting to feel stale. Meanwhile, Samsung keeps pushing the envelope with the Galaxy series (Note, S3)....the Lumia's are somewhat interesting, and I'm also curious to check out what the new Blackberry has to offer. I'm not surprised by this type of news, there is a lot of great competition out there now, and we as consumers (not fanboys) all benefit.

EDIT: and yes, who the F is cricket?


You sound like the typical American consumer. You bought into the hype no matter who the product is made by, now your're bored because they never said you wouldn't be. Lol. Now you want to run over to Sammy, maybe , because they have a few more inches of screen real eastate on them big ass galaxy phones. Hahahha! And soon you'd be tired of that after a few hours.
Oh how they love a sucker!
Rating: 3 Votes

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