Print 62 comment(s) - last by inperfectdarkn.. on Oct 7 at 9:35 AM

Sprint CEO Dan Hesse   (Source: Mark Costantini/The Chronicle)
Sprint is reportedly committing to purchase 30.5m million iPhones over the next four years

All signs are pointing towards Sprint getting Apple's next generation iPhone, and the official announcement will come tomorrow during Tim Cook's keynote address. However, the price that Sprint will have to pay to join the iPhone brotherhood in the U.S. -- along with fellow wireless carriers AT&T and Verizon -- will be tremendous.
According to the Wall Street Journal, Sprint has agreed to buy 30.5 million iPhones over the next four years from Apple. The price tag for Sprint is a whopping $20 billion USD. Sprint will be subsidizing the cost of each on-contract phone to the tune of $500.
Another risk for the copmany is the fact that Sprint won't even make any money on the deal until at least 2014.
Sprint CEO Dan Hesse approached Sprint's Board of Directors with the deal, and they were understandably hesitant about betting the company on Apple's smartphone prowess. But in the end, the Board felt that it was fighting a losing battle against larger rivals Verizon and AT&T which both have the iPhone. In addition, if AT&T's planned acquisition of T-Mobile were to be approved, its fortunes in the marketplace would be even more dire.
The board eventually decided, "How can we pass this up? We have to have it."

With Sprint's commitment to making unlimited data a priority for its customers (at a time when Verizon and AT&T are putting bandwidth caps on users), such a deal could help bolster Sprint's survival chances in this cutthroat industry.
While Hesse and the Board are definitely onboard with the iPhone deal, investors are less thrilled. Sprint shares closed at $2.73, representing a 10.2 percent drop from the opening bell.

Sources: Wall Street Journal, Bloomberg, Google Finance

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

RE: Leave AT&T/Verizon
By cjohnson2136 on 10/3/2011 5:09:38 PM , Rating: 2
I researched when I jumped shipped and also talked to people in my area who have Sprint. The 4G coverage in my area is always full bars. From time to time I will have 3 bars but that not to often. A few of my friends are jumping ship as soon as the iPhone goes to Sprint.

RE: Leave AT&T/Verizon
By Reclaimer77 on 10/3/11, Rating: -1
RE: Leave AT&T/Verizon
By Brandon Hill on 10/3/2011 5:43:59 PM , Rating: 5
Well, it's a good thing that I'm not shallow enough to base my friendships on what phones (or cars) they buy ;-)

RE: Leave AT&T/Verizon
By Reclaimer77 on 10/3/11, Rating: -1
RE: Leave AT&T/Verizon
By xype on 10/3/2011 5:59:18 PM , Rating: 2
Having friends with people who need to have their life experience validated by a popular smartphone? Nah Brandon you have it all wrong, THAT would make me shallow :)

Judging people by their choice of a mobile phone: Not Shallow™. Got it, thanks for clearning that up!

RE: Leave AT&T/Verizon
By Pirks on 10/3/11, Rating: 0
RE: Leave AT&T/Verizon
By Reclaimer77 on 10/3/2011 9:55:22 PM , Rating: 1
Judging people...

They aren't people, they're sheeple :)

Not Shallow™

LOL, nice!

RE: Leave AT&T/Verizon
By FITCamaro on 10/4/2011 11:27:24 PM , Rating: 2
Yep all the Apple sheep at work today were fawning over the new iPhone. I was like "it doesn't even have 4G". But it has a better camera!

Besides how could they sell you an iPhone 5 in 6-12 months if the 4Gs had 4G?

I'll enjoy insanely fast data speeds while Apple sheep snap worthless pictures of themselves using their other Apple products.

RE: Leave AT&T/Verizon
By TakinYourPoints on 10/3/2011 9:42:57 PM , Rating: 2
It's a good thing you don't judge people based on what products they buy, what a hypocrite that would make you

RE: Leave AT&T/Verizon
By bjacobson on 10/3/2011 6:08:21 PM , Rating: 2
yeah me too wtf i paid for 4gs and im only getting 3 bars thought it was supposed to be 4/????

"We can't expect users to use common sense. That would eliminate the need for all sorts of legislation, committees, oversight and lawyers." -- Christopher Jennings

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki