$100 million worth of unsold iPhones stuck with prepaid carrier

apple-iphone-4-91The Wall Street Journal has some interesting news today, from Leap Wireless, the company behind Cricket. According to the report, $100 million worth of iPhones is what the company is now stuck with because the devices have not been sold. A problem could have been what the device was priced at. Starting at $399 for the 8GB iPhone 4, it’s now obvious that people would rather pay a little more for their wireless contracts and get the iPhone for cheaper as opposed to have a cheap contract and an expensive iPhone. The plans that Cricket offers are as small as $55 a month, however, as stated previously, the devices start at $399. Leap Wireless is only in its first year of contract with Apple, so it will be interesting to see where this progresses.

What do you think? What will Leap do with the devices? Should it lower the prices? Let us know in the comments, or tweet me @TiP_Kyle.

 

Via: Mashable, WSJ

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  • jabombardier

    I guess they will have to throw in some type of incentive to get people to buy one. Maybe one month free or maybe just take off $100. Quite frankly I see $399 as a bargain. And if this is happening to Cricket, then I see T-Mobile not fairing well unless the equestrian installment plan makes the iPhone or any phone still look attractive.

  • lean6rtj2

    It was pretty dumb to think that that people who are looking to save money on wireless…or who couldn’t afford the other carriers, would turn around and shell out a minimum of $400 cash for an iphone. Everybody that I know personally who are Cricket customers are one missed check away from the poor house.

  • D Bea

    @jabombardier difference with T-Mobile is that you wouldn’t pay 399 at POS you would pay 200 like you would with any other carrier… you still have the installments on your bill but if your on unlimited talk text 2gb data is 59.99 plus the $20 a month is $79.99… who wouldn’t want that???

  • lean6rtj2

    @D Bea @jabombardier
    Then it seems they haven’t gotten the word out adequately about their business model while using terminology that people think they know well enough not to ask.

  • MichaelChapman1

    I wonder how well Virgin Mobile has fared with there iPhone sales?