Leap’s inability to sell iPhones means…what, exactly?

As a result, Leap said, it could end up with $100 million worth of unsold iPhones by the middle of this year. That spells more trouble for Leap, a company struggling to keep pace with larger competitors, and sheds light on the challenges facing Apple in cracking the huge market for smartphones being bought by lower-income consumers.

Oh NOES. The iPhone is a failure! Everyone hates Apple now! SELL AAPL! SELL! SELL!

Leap, which has about 5.3 million total subscribers, is also handicapped by the fact it lacks the robust nationwide networks of the country’s biggest carriers, and because technological limits mean it can’t sell the iPhone in all of its markets.

Oh, gee, you think this may explain part of the reason why fewer customers than expected are rushing to buy iPhones from this company? No, it has to be “challenges facing Apple.” Right.

  • Jamaican SpiderMon

    Oh, WSJ, you sure know how to spin a good story.

  • All it means is that they (Leap) mis-calculated demand. Which means that they will be buying less iPhones in the future, which will impact Apple’s revenue by about $100M… Or about 0.065% 😮

    Nothing to see hear folks… Move along!

  • albertkinng

    Can anyone answer why bashing Apple is a trend now? It seems that if you don’t say “Apple is doomed” people won’t be friends with you. Hmmm

    • Virtually the entire article was about Leap’s woes and poor risk and general management decisions with very little attention paid to Apple.

      Of course it is at least a small concern for Apple if partners (even small ones) are unable to sell large enough quantities of products to consumers unwilling to enter into long-term subsidised mobile contracts. Moreso if other carriers are (as rumored) looking to ease away from fronting up the initial cost of subsidised contracts.

      • albertkinng

        Yes, but again… It seems every where people are publishing bad things about Apple. It’s like a pure hate community rising to the top.

        • Ask Android fans they’ll tell you the world is out to get them and their chosen platform. Ask Microsoft fans they’ll tell you the whole world is against their “team”. And Apple fans think everywhere people are on a mission to destroy their favorite tech brand. If you fall into one of these camps, you probably need to take a good hard look at yourself in the mirror and get a look at what you’ve become.

          • albertkinng

            I ask because for the first time is noticeable. If you are like me and read tech news everyday it’s kind of shocking read a lot of bad false news about a Company. Don’t get me wrong I am a tech fan not a brand fan it is just that this type of bashing really got my attention.

          • Bashing Apple has been noticeable as long as I’ve been paying attention. Probably longer, but I only started in the late ’90s. It’s just been a little bit muted due to Apple’s recent success with the iPhone and iPad. Now that there is decent competition, I’d expect the Apple is doomed talk to get louder. I’d also bet that Apple will continue to make more in profits than the competition and continue to set the bar for the segments in which they compete.

    • Unscrupulous stock analysts and fund managers have long known that Apple is so high-profile and engenders such strong opinions, that it’s relatively easy to affect its short-term stock price by publicly trashing it with rumor and innuendo.

      And that’s apparently all much of the tech press needs to derive “insight” about the company without paying attention to its actual performance. The echo chambers of public opinion do the rest.

  • Jim

    It means their business model:

    “Leap, on the other hand, is selling the iPhone for more money up front—$500 for the latest model—but doesn’t requiring customers to sign contracts and charges less per month than other carriers do.”

    Doesn’t work.

    • Peter Cohen

      Maybe. Leap is far from the only company doing this. Straight Talk Wireless (owned by Tracfone, sold at Walmart) and Virgin Mobile both have unsubsidized iPhones for sale as well. We’ll see how they do.

  • who the fuck is Leap?

  • racing fan

    Maybe they’d sell more iPhones if they listed smartphones alphabetically on their site, or at least made a way for it to be in the top half of the list. The iPhone 5 is all the way at the bottom, below a flip phone.

    In all the blurb at the bottom of their page (I assume for SEO) they have links to their Android and Blackberry phones, no mention of Apple.

    In fact, now I’ve put my zip code in, I can’t get their store to show me an iPhone at all.

  • Sharninder

    Leap doesn’t have a decent reliable network, sells the iPhone at $500 and expects people to buy them when competitors are selling them for $200 with a decent (not at&t) nationwide network.


  • Journalism has ended with the Raging Reporter from Prague… ever since truthful and thoughtful texts have been rare.