Quick Note: Sprint to "Bet the Farm" on Apple's Next Generation iPhone
October 3, 2011 4:40 PM
comment(s) - last by
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."
commitment to making unlimited data a priority for its customers
(at a time when
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.
Wall Street Journal
This article is over a month old, voting and posting comments is disabled
RE: Leave AT&T/Verizon
10/3/2011 5:26:59 PM
For myself, I have hit in excess of 20GB a few months on Sprint. The bulk of this is streaming Google Music or Pandora to my phone. While lately this is on 4G, for a very long time in my old office it was only 3G and I still hit those numbers (using Pandora then, as no Google Music then). I don't know any providers that have caps that would accomodate me to do so on 3G/4G using my phone.
And Sprint's LTE network starts roll out in the beginning of next year. So this is ontop of that also occurring.
“And I don't know why [Apple is] acting like it’s superior. I don't even get it. What are they trying to say?” -- Bill Gates on the Mac ads
Sprint: Unlimited Data Here to Stay
September 27, 2011, 9:43 AM
Report: iPhone 5 Launch Set for October 4 at Exclusive Apple Event
September 21, 2011, 12:53 PM
DOJ Files Paperwork to Kill AT&T/T-Mobile Merger; AT&T, Sprint Respond
August 31, 2011, 11:21 AM
Verizon Unveils Industry's Most Expensive Metered Data Plan
July 5, 2011, 7:30 PM
AT&T May Fine iPhone Users for Using Too Much of Its "Unlimited" Data
December 9, 2009, 10:45 PM
T-Mobile CEO John Legere is on the Warpath Again; Introduces $100, 10GB Family Plan
July 28, 2014, 10:12 AM
Report: All 15" MacBook Pros to Receive 16GB RAM Standard Starting Tomorrow
July 28, 2014, 8:12 AM
Sony's Xperia Z3 Gets Detailed in Leaked Photos
July 25, 2014, 2:30 PM
Heavy Users of Verizon’s “Unlimited” LTE Data Could Soon See Targeted Throttling
July 25, 2014, 1:52 PM
Motorola Moto X+1 Makes Appearance in Leaked Photos
July 25, 2014, 12:06 PM
Sony Finally Adds 3D Blu-ray Support to PS4
July 24, 2014, 3:44 PM
Most Popular Articles
JJ Abrams Unveils X-Wing Starfighter for New "Star Wars" Movie
July 21, 2014, 12:24 PM
Ford Details ’15 F-150’s 325hp, 2.7L EcoBoost V6; Demonstrates 732-lb Weight Loss
July 22, 2014, 6:55 PM
Comcast Memo: Harassing Customers During Retention Calls Actually IS Our Policy
July 22, 2014, 5:19 PM
Kindle Fire Phone Review Roundup -- A Solid "Meh"
July 23, 2014, 2:09 PM
Motorola Moto G Successor Reportedly Uncovered, Moto X Discounted by up to $75
July 21, 2014, 1:11 PM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information