Back in February, Leap Wireless submitted a rather alarming filing with the Securities and Exchange Commission (SEC). It had been seeing much weaker demand for the iPhone than expected, and it was only on track to sell through half of its first-year commitment.
But apparently, the problems were only temporary. Yesterday, the company—who sells the iPhone through its subsidiary Cricket Wireless—reported its earnings for its first operating quarter this year, and it told investors that it is seeing much better iPhone sales…
Here’s an excerpt from the company’s press release:
“We are also seeing improved sales of our iPhone® offering, having worked with Apple on new advertising, pricing plans and other promotions, and we look forward to continuing to collaborate with them.”
Unfortunately, the increase in iPhone sales was about the only good news on the day for Leap Wireless. The company reported a staggering loss of 93,000 subscribers, as well as a 4.3% decline in total revenue to $789.9 million from $825.6 million during the year-ago quarter.
Cricket Wireless currently sells the iPhone 5 for $499 and the 4S for $349, both off contract and after hefty mail-in rebates. And as far as plans go, it recently announced a reduced iPhone data plan that offers up unlimited voice, text and data for a cool $50 per month.
Leap has a deal with Apple that requires it to purchase almost a $1 billion worth of iPhones over the next three years. It seems like it could really use that sub-$300 handset from Apple that everyone keeps talking about.