Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Leap Wireless International (LWIN) -- Ignore unavailable to you. Want to Upgrade?

To: pcstel who wrote (2113)	6/5/2002 6:21:22 PM
From: Robert J. Irvin	Respond to of 2737

Reality Check. "They should give away the stuff that cost them almost nothing, instead of Cash in the form of a subsidy." Cricket distributes its phones in Phoenix through 281 Circle K stores, in addition to other channels. I called 12 stores and got responses from the manager or assistant manager at seven of them, with two refusing to give out corporate info and three not available when I called. The results by store manager: Sales when phones not on sale; When phones on sale 1 to 2 per week; 2 to 3 per week 1 to 2 per week; 5 per week 3 to 4 per week; 3 to 4 per week* 10 to 15 per week; "a lot more" 10 per week; 20 per week 10 per week; 20 per week 10 to 12 per week; 30 plus per week located by campus, perhaps why May sale didn't help one manager of two stores, says among highest overall sales in system for all products The sale lasted two weeks, ending Memorial Day, offering a phone with an on-the-spot rebate for a walk-away price of $39.99. Several managers said the mail-in rebate didn't have much effect on sales, it's the walk-away price that counts. It was the first since a similar sale in late February and early March, also two weeks. What do I take away from this? In Phoenix at least, price sells phones!* And management can and will hit its subscriber numbers by tweaking its promotions. Your suggestion, while appealing, would appear to drive sales over a cliff! Maybe other markets are different, for now I don't know. So, the cost of phones to Cricket becomes an even more critical variable. Any way to check whether these costs are coming down, and how low they may go? This could be the key to Leap's success or lack thereof, if it's true that price sells phones.