iPhone addition predicted to boost RadioShack profitsRadioShack will begin selling the iPhone at its U.S. stores nationwide in 2010, a move that has been viewed as a coup by Wall Street analysts.
Credit Suisse on Monday updated its rating on RadioShack stock from neutral to outperform, citing the addition of the iPhone to the electronics retailer's product lineup. It has set a price target of $25, up from the previous $15. A number of other firms, including Goldman Sachs, Morgan Stanley and Barclays Capital, also upped their ratings, according to Barron's.
RadioShack announced last week that it will offer the iPhone 3G and iPhone 3GS in a few select stores in November, with the program expanding elsewhere in 2010.
"As part of its ongoing mobility strategy, RadioShack is pleased to announce that it will introduce Apple's iPhone 3G and iPhone 3GS in a limited number of company-owned stores in the Dallas-Fort Worth and New York City metropolitan areas beginning later this month," the company said. "RadioShack expects to introduce iPhone in stores nationwide in 2010."
RadioShack will join Walmart and Best Buy —along with Apple and AT&T stores —in selling the smartphone. Best Buy began offering Apple's handset in 2008, and Walmart joined the fray later that year.
Agreements with RadioShack are not new for Apple. In 2005, the retailer reached a deal to add Apple's full line of iPods to its stores.
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