Shares of consumer
electronics retailer RadioShack Corp. (NYSE:RSH) could witness downward pressure
as its mobility business is becoming less profitable due to mix of lower margin
smartphones and severe competition from rival Best Buy Co. Inc. (NYSE:BBY).
RadioShack said its
fourth-quarter profit plunged 79 percent, hurt by the under-performance of the
Sprint postpaid wireless business coupled with higher promotions and tight
consumer spending.
The company earned $11.9
million or 12 cents a share for the fourth quarter. This is compared with
earnings of $57.0 million or 51 cents a share in the year-ago period.