Leap Could be Left With $100 Million in Unsold iPhones

U.S. prepaid carrier Leap Wireless could be left with as much as $100 million worth of unsold iPhone units.

The firm, which operates Cricket Wireless, told the Wall Street Journal that it's considerably behind in its prepaid iPhone sales. When it completes its year-long contract with Apple in June, it's likely to have sold half of the iPhone units it committed to selling.

Apple partners with prepaid carriers in an effort to attract more lower-income consumers. Leap currently has around 5.3 million subscribers but is affected by the fact that it has less network access than America's major carriers.

With Leap's no-contract plan, consumers pay nearly full price for the iPhone but are then charged a lower amount for monthly payments when compared to carriers that require two-year contracts. By paying Apple a small subsidy, Leap offers the iPhone 5 for $500, which is around $150 less than buying the smartphone from Apple itself.

Contact Us for News Tips, Corrections and Feedback

Create a new thread in the US News comments forum about this subject
This thread is closed for comments
21 comments
    Your comment
    Top Comments
  • slomo4sho
    $500 for an iPhone 5 or $350 for a Nexus 4...Which is the better buy? I guess some people will still pay a premium for inferior hardware and a brand name.
    20
  • Other Comments
  • Jim_L9
    Ouch!
    6
  • slomo4sho
    $500 for an iPhone 5 or $350 for a Nexus 4...Which is the better buy? I guess some people will still pay a premium for inferior hardware and a brand name.
    20
  • goodguy713
    Virgin mobile offers the iphone 5 as well but i think its a bit cheaper .. how ever 500 for any phone is to much if you ask me.. personally i think the most i would pay for a phone would be around the 250 to 300 mark any more then that would be a waist considering your looking at upgrading it in 1 to 3 years time.. phones just are not that important especially when most modern phones like HTC EVO 4g 3d can handle most if not all of the functions .. and performs well at around 250 you cant go wrong.. what what point do faster processors and gimics really add any value to phones? other then a name and a marketing scheme ?
    -7