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
10/5/2011 12:12:39 PM
excuse me for assuming
Sorry I won't. And neither will the court system re: the contract you entered into. If fact, I don't know how you got stuck in such a situation with the softball laws that we have protecting idiot consumers re: carrier contracts. So no, you have no excuse unless there is something I am missing (like you were grandfathered in on a 10 yr contract lol).
And I didn't mean to come across as saying anything disparaging about NC.
I am simply saying that there are some places (could be NYC for all I care) that get good reception on some carriers and not so good/no reception on others. All that matters is that it works where you need it. And if it doesn't work where you need it, then why are you using it and complaining about it. My experience has been great with Sprint while living in NorCal, SoCal and the STL area. If it doesn't work in NC and I lived there then I wouldn't be with Sprint either.
There is either a lake where you live or there isn't. Don't complain if you bought a boat.
"A politician stumbles over himself... Then they pick it out. They edit it. He runs the clip, and then he makes a funny face, and the whole audience has a Pavlovian response." -- Joe Scarborough on John Stewart over Jim Cramer
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