backtop


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 sigmatau on 10/3/2011 10:21:07 PM , Rating: 2
It's worse in Raleigh/Durham. Maybe it's my phone, but out of AT&T, Verizon, Sprint, and even Boost, the worst one is by far Sprint. I thought it was my phone but I had someone else test theirs when I was having issues with mine and they couldn't dial out.

Sometimes it will take 5 tries to place a call. This is downtown with 4 bars. Why would I freaking care about going to an unlimited plan from Sprint if I can't even place simple calls consistently?


RE: Leave AT&T/Verizon
By TheRequiem on 10/4/2011 11:35:03 AM , Rating: 2
It's ok, in time, you will learn to join the dark side of the force.


RE: Leave AT&T/Verizon
By Gamingphreek on 10/4/2011 11:45:56 AM , Rating: 2
Your argument is terrible and biased. **Boost IS Sprint with no roaming**


"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki