RadioShack and Verizon Wireless Woo Customers with Special Offers

RadioShack (NYSE:RSH) recently announced that it will carry Verizon Wireless, part of Verizon Communications (NYSE:VZ), products and services in more than 4,400 stores across the U.S. and through its website, RadioShack.com. With this launch, RadioShack and Verizon Wireless have come out with special offers for their customers like $100 off Verizon products. According to CEO Jim Gooch, this partnership paves the way for customers to compare and contrast their mobile phone choices in one convenient location. Customers are better off with a wide choice of carriers, rate plans, devices, services and accessories. RadioShack sells consumer electronics goods and services through its RadioShack chain of stores and competes with retailers like Wal-Mart (NYSE:WMT), Target (NYSE:TGT) and Best Buy (NYSE:BBY).

See our complete analysis for RadioShack

Special Offers to Woo Customers

It is still early to comment on how beneficial Verizon Wireless partnership would prove for RadioShack. The consumer electronics retailer has been facing fierce competition from retailers like Best Buy and Target. Nonetheless, we feel the partnership is certainly a step in the right direction.

But it remains to be seen if it will help RadioShack fight intense competition from larger retailers. For now, Radioshack is wooing customers with attractive new promotions, which look attractive: ^[1]

• RadioShack is offering $100 off on most Verizon Wireless smartphones, including scorching-fast 4G LTE devices such as the DROID BIONIC by MOTOROLA, the DROID CHARGE by Samsung, the Revolution by LG and the ThunderBolt by HTC
• It is also offering $100 off on other iconic 3G smartphones from Verizon Wireless, including the DROID X2 by MOTOROLA and the DROID INCREDIBLE 2 by HTC
• A $20 RadioShack gift card for customers who purchase a no-contract Verizon Wireless phone in-store
• 25 percent off all cases and screen protectors matching Verizon Wireless devices

We have a $14.80 price estimate for RadioShack, which is around 20% upside to the market price.

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1. See: RadioShack Delivers Special Offers for Launch of Verizon Wireless in Stores Nationwide, Company Website [↩]