Electronics retailer RadioShack is trading up in the mobile phone industry by dumping the much smaller T-Mobile and signing a new agreement with the much bigger Verizon Wireless. In a press release today, RadioShack announced it will begin offering mobile phones from the US's largest wireless carrier beginning on September 15. The new deal will have RadioShack stores offer both pre-paid and contract mobile phones and services in all of RadioShack's 4,300 retail stores as well as on the company's official web site.
The move means that RadioShack is dumping T-Mobile's product line after September 14. According to a Reuters story, RadioShack has accused T-Mobile of breaking their original contract. In addition, RadioShack claims that T-Mobile's selection of phones were not as competitive as others. T-Mobile is in the middle of a possible merger agreement with AT&T. Reuters reports that financial analysts have praised RadioShack's move to Verizon and the announcement also sent the company's stock up 19 percent today.
RadioShack also revealed its latest financial numbers for the last quarter that ended on June 30. The retailer recorded revenues of $941.9 million for the last quarter. That number is slightly less than the $962.3 million in revenue it brought in for the same period a year ago. The company also recorded a net income of $24.9 million for the quarter but that number is much lower than the $53.0 million in net income RadioShack announced for the same time period a year ago. The company said it had two one-time charges that reduced RadioShack's income numbers.