In my (anecdotal) experience working at 2 different Radio Shacks in different parts of the country with vastly different demographics, RS didn't need cellphones (or laptops, or TVs). I would claim that the cellphone business drove away more customers than it brought in. If RS was a simple, no-hassle PBA retailer, I am convinced that it wouldn't be in the shape it is in now.
I'd say there's a third critical mistake, harvesting the customer stream and selling them an "every two years" phone which they pay for by postal mail bill and never have a reason to return to your store again and if they did you know they'd have $100/month less to spend at your store. And abandoning whatever reason the customer stream had for visiting so you will never get any new customers.
It would be like a bar forcing all its employees to do absolutely nothing other than convince thirsty patrons to quit drinking and start going to AA meetings in the church basement, and paying them a commission when the customer agrees to leave and never come back to the bar. And doing this for so long that everyone in the drinking community knows theres no reason to go to that bar anymore other than to get harassed to go to AA meetings. Hmm I wonder how long a bar managed like that would last?
RadioShack is the only retail store I have heard of, in Delaware or Maryland or southern New Jersey, that has resistors, capacitors, bread boards, etc.
In my view, they made two critical mistakes:
1) The bing/G+ mistake - letting other companies set an agenda that had them relying on execution outside their area of competence. They wanted to push phone contracts and TVs like walmart, but they lack the retail space and brand recognition to do so. This transition can be made (costco comes to mind), but Radioshack bet the farm on it and lost.
2) Maliciously pricing hardware components. I say "malice" very intentionally. Things like adapters, resistors, and pots cost literal pennies coming out of China. Hobbyists will happily pay $1 for a $0.10 item to avoid sourcing it from the factory or ordering from a catalog. $8 is a different story. Going to Radioshack went from "awesome, what will I build this week?" to "man, they're really fucking me on this".
Couldn't have happened to a more deserving bunch. Radioshack's death is long overdue.