Sprint Records Net Loss, But Adds 1.3 Million Subscribers
October 26, 2011 12:30 PM
comment(s) - last by
(Source: Into Mobile/AP)
Sprint hopes for big boost from iPhone, but may be hit by tethering defectors
Sprint Nextel Corp. (
), America's third largest carrier, had some good news to report today with its
latest earnings report
The company reports that in the third calendar quarter of 2011, it earned $8.3B USD in net revenue and $1.3B USD in adjusted operating income before depreciation and amortization (OIBDA).
Sprint has reached its highest subscriber totals in the last five years, driven by 1.3 million new subscribers in the quarter --with 304,000 new standard (post-paid) subscribers, 485,000 new prepaid subscribers, and 835,000 affiliate (e.g. business) subscribers.
The company did all of this without the Apple, Inc.'s (
) iPhone, which
is now on Sprint’s network
. The company writes:
Growth in Sprint brand net additions was achieved without the benefit of Apple’s iPhone 4S and iPhone 4, which launched Oct. 14. The launch of this iconic device resulted in Sprint’s best ever day of sales in retail, web and telesales for a device family in Sprint history. The response to this device by current and new customers has surpassed initial expectations. The iPhone is expected to be accretive for Sprint, and iPhone users are expected to be among Sprint’s most profitable customers.
Still, the outlook for the company isn't altogether rosy. The company reported a net loss of $301M USD for the quarter.
Adding to the negative side of the picture, the firm recent killed
unlimited data on its tethered and tablet connections
, and forum traffic indicates that some customers are already cancelling their tethering service. With smartphone data potentially on the chopping block next, it remains to be seen how much more Sprint subscribers will put up with.
Also we recently raised concerns about how Sprint is allowing text message frauders to
victimize its customers
, happily billing customers' plans without their approval and reportedly pocketing a cut of the revenue from the fraud scheme.
These concerns aren't enough to entirely outshine the positive movement at Sprint, but they do give cause to pause when considering a move to Sprint’s network.
This article is over a month old, voting and posting comments is disabled
woulda, coulda, shoulda
10/26/2011 3:33:32 PM
sprint would have been WAY better off if it said "we don't care about iphone, we're just going to offer the best mobile data plans--and eventually apple will cave on pricing.
RE: woulda, coulda, shoulda
10/27/2011 9:06:53 PM
Doesn't work like that. They tried that... and they bled customers.
Thing is, the iPhone accounts for more customers than just iPhone customers....
As an example, if my wife wants an iPhone for Christmas, but I'm happy with whatever phone, I either have to:
- fight with her to convince her she doesn't [i]really[/i] want an iPhone (great for the relationship)
- ignore her desires (also great for the relationship)
- pay out the ass for 2 individual plans
- move to a network that has an iPhone as an option
Guess which one people in this situation do most often? When they have kids and such too, one iPhone user switching may account for 2-4 actual customers gone.
“So far we have not seen a single Android device that does not infringe on our patents." -- Microsoft General Counsel Brad Smith
Sprint Kills "Unlimited" Tethering, Unveils Industry's Most Pricey Data Plans
October 24, 2011, 12:48 PM
Editorial: Sprint is Allowing Spammers to Defraud Its Customers
October 21, 2011, 10:04 AM
Sprint Taking iPhone 4/iPhone 4S Pre-Orders; Offers Unlimited Plans
October 6, 2011, 9:47 AM
Apple Says Nude Celebrity Photo Dump Wasn’t Result of iCloud, Find My iPhone Breach
September 2, 2014, 3:26 PM
BlackBerry Passport Flagship Smartphone to be Officially Announced September 24
September 2, 2014, 2:36 PM
Google Plans Small Updates to Make Android Wear Smartwatches More Self-sufficient
September 2, 2014, 11:00 AM
webOS Reborn as LuneOS ROM for Select Android, webOS Devices
September 2, 2014, 10:47 AM
Sony Xperia Z3 Compact Revealed in Leaked Photos
September 2, 2014, 9:53 AM
ASUS' ZenWatch to Arrive Wednesday, Feature Sub-$200 MSRP
September 1, 2014, 2:40 PM
Most Popular Articles
Numerous Leaks Detail 4.7" iPhone 6 Processor, RAM, Cellular and NFC Capabilities
August 29, 2014, 10:37 PM
Windows 9: "Upgrade Now" Button Coming for Enterprise Updates, ARM Preview in H1 2015
August 26, 2014, 8:00 PM
L.A. Unified School District’s Apple iPad Contract Canceled Following Heavy Criticism
August 26, 2014, 12:37 PM
Apple Builds Not-So-Secret Secret 3-Story Tower for iPhone 6/iWatch Unveil
August 28, 2014, 3:41 PM
Netflix Accuses Comcast of Ripping Off Customers, Files to Block Merger
August 26, 2014, 5:49 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