Extends Free Phone Promotions Through Year-End (RadioShack)

NEW YORK (Dow Jones)--RadioShack Corp. (RSH) plans to extend a promotion it offered this week that boosts the selection of free phones customers can get when they sign up for a wireless service contract.
The move is the latest sign retailers are willing to compete aggressively for their share of rapidly growing mobile phone sales, particularly smartphones. The stakes are particularly high for RadioShack, which eked out growth in sales of mobile devices at company operated stores in the third quarter while other product categories saw significant declines.
Each week through the end of the year, RadioShack customers who sign up for a service contract will be able to choose from at least 20 phones for free with their plan, Chief Merchandising Officer Scott Young said in an interview Friday. That's up from five to 10 normally, he said.
The deal is an extension of a promotion the company offered this week in advance of Black Friday. "Given the response, we're going to formally extend the promotion," Young said.
The lineup of phones it will offer next week includes HTC Corp.'s (HTCXF, 2498.TW) Inspire 4G and Samsung Electronics Co.'s (005930.SE, SSNHY) Conquer 4G.
"They aren't just the feature phones," Young said. "We definitely, for the holidays, have ramped this up."
Absent from the list are some highly sought devices such as Apple Inc.'s (AAPL) iPhone. Young said the decision of which gadgets to include involves pricing from the carriers and support from handset manufacturers.
Young declined to give details on how holiday-season deals such as the smartphone offer will affect RadioShack's margins, but said he had no update to the company's current-year financial guidance.
RadioShack has narrowed its focus on mobile devices, a strategy that has shone less brightly of late as competitors such as Best Buy Co. (BBY) step up their efforts in the area.
RadioShack has argued it offers neutral advice on which phones and plans are the best, which allows it to provide more objective service than wireless carriers' stores. The company hopes to build customer loyalty with its service offering and also hopes to pair sales of mobile devices with accessories such as headphones.