RadioShack profits slump on weak T-Mobile returns

Reuters is reporting that this quarters pedestrian earnings filed by electronics retailer RadioShack has something to do with the wireless industry. Citing RBC Capital analyst Scot Ciccarelli, the publication notes that “RadioShack gave up a lot of compensation from AT&T and Sprint to carry T-Mobile [equipment], and this partnership doesn’t appear to be panning out the way management expected.” The news comes nearly one year after RadioShack executive Jim Gooch stated that T-Mobile had “materially breached its contract” with the retailer. RadioShack has lowered its earnings estimates for fiscal year 2011 — analysts cite weak demand and stiff competition in the retail and online spaces as potential causes.

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