Subject: [NEXTEL-1] Circuit City Hindered By Slow Wireless

From: Marcel <[email-masked]>
Date: Tue, 17 Dec 2002 14:56:27 -0500

Circuit City Hindered By Slow Wireless
BY WIRELESS WEEK STAFF
DECEMBER 17, 2002

Price wars and slow customer acceptance of next-generation wireless phones and
service apparently are hitting home: Circuit City Stores says weaker sales in
wireless phone and service sales helped hinder its performance in the third
quarter.

The nation's second-largest consumer electronics chain says its continuing
operations lost $21.3 million in the three months ended Nov. 30, compared with a
$9.2 million profit in the same period last year.

Retailers overall have been hindered by the lateness of Thanksgiving this year --
the traditional start to the holiday shopping season -- but Circuit City said results
also were affected by slowdowns in two of its highest margin categories: wireless
and digital satellite systems. The company blamed 'industry-wide slowdowns in
new customer acquisitions for these categories,' which led to stiffer price
competition.

Facing apparently slow takeup of new phones and services that use the new CDMA
2000 1XRTT and GPRS networks, carriers have used cut-rate pricing for voice and
data services to attract new subscribers and get existing subs to upgrade phones
and boost usage. Circuit City's results could indicate the strategy has yet to
produce strong benefits for retailers, who essentially compete with the carrier sales
channel for customers.

http://www.wirelessweek.com/index.asp?layout=newsat2direct&starting=3&pubdate=12/17/02

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