Price wars and slow customer acceptance of next-generation wireless phones and service apparently are hitting home: Circuit City Stores says weaker sales in wireless phone and service sales helped hinder its performance in the third quarter.

The nation's second-largest consumer electronics chain says its continuing operations lost $21.3 million in the three months ended Nov. 30, compared with a $9.2 million profit in the same period last year.

Retailers overall have been hindered by the lateness of Thanksgiving this year -- the traditional start to the holiday shopping season -- but Circuit City said results also were affected by slowdowns in two of its highest margin categories: wireless and digital satellite systems. The company blamed 'industry-wide slowdowns in new customer acquisitions for these categories,' which led to stiffer price competition.

Facing apparently slow takeup of new phones and services that use the new CDMA 2000 1XRTT and GPRS networks, carriers have used cut-rate pricing for voice and data services to attract new subscribers and get existing subs to upgrade phones and boost usage. Circuit City's results could indicate the strategy has yet to produce strong benefits for retailers, who essentially compete with the carrier sales channel for customers.