Recoton and Sprint near deal

Television Digest with Consumer Electronics, Jan 5, 1998

Pact is said to be in final stages, would cover 17 accessories at start including line cords, adapters and wail plates at prices ranging up to $15, retail sources said. Recoton Pres. Robert Borchardt declined comment, while Sprint spokesman wasn't immediately available.

Strategy would price Sprint accessories about 10% above those carrying Recoton name and involve 2-brand strategy similar to that used by Gemini Industries with Southwestern Bell (SBC) and Jasco Products with Southern New England Telephone (SNET). AT&T also has strong retail presence with branded accessories marketed by newly formed Lucent/Philips joint venture. "This [Sprint] would be a step up line and you would stay with Recoton on the low-end," source said.

Deal would represent another expansion of Sprint brand at retail. Sprint has launched store-within-a-store concept at Tandy's RadioShack chain (TVD Sept 29 p16) focusing largely on wireless products including PCS phones.

Bell logos have served accessories companies well in generating margins approaching 60-65%, industry officials said. Gemini, which introduced SBC branded accessories in 1996 and has expanded it to 100 items, recently added Wal-Mart to its roster, Mktg. Vp Michael Schwartz said. "People don't really see the Southwestern Bell name, but they do see the Bell logo," said Schwartz, whose company also licenses AT&T name for cellular phone accessories.