IPhone Won't Be Profitable for Sprint Until '15, Early Upgrades Ending June 1
May 16, 2012 2:05 PM
comment(s) - last by
Apple is sure to see a much greater benefit from this iPhone relationship than Sprint
Apple's iPhone is a huge seller both worldwide and in the United States. At first, the smartphone was exclusive to AT&T's wireless networks in the U.S. Just over a year ago,
Verizon jumped onboard
. And with the launch of the iPhone 4S, Sprint was finally able to
provide Apple's popular smartphone to its customers
When the deal was first announced, it was reported that Sprint would purchase 30.5 million iPhone over the course of four years (at a cost of $15.5 billion USD). It was also reported that Sprint
wouldn't make any money on the arrangement with Apple until at least 2014
Fast-forward to today, and Sprint CEO Dan Hesse is now pushing back that profitability date until 2015. Hesse still stands by his assertion that "carrying the iPhone will be quite profitable;" shareholders are just going to have to wait a bit longer than they originally envisioned.
For anyone that questions Hesse's decision to make a deal with Apple, he simply tells them to take a look at embattled T-Mobile. T-Mobile recently announced that it would be laying off an additional 900 workers in the U.S. and has lost contract customers for 10 straight quarters.
T-Mobile is also the only one of America's "Big 4" wireless carriers that doesn't have the iPhone.
In other Sprint news,
has learned that the wireless carrier will end early upgrades for customers effective June 1. The program allowed customers to upgrade to a new phone within 10 to 14 days of their originally scheduled upgrade date.
Granted, waiting an extra two weeks isn't going to be a deal breaker for most people, so we doubt that many Sprint customers will cry themselves to sleep over this move.
This article is over a month old, voting and posting comments is disabled
5/16/2012 4:34:41 PM
Yeah, I think it was a really poor decision to basically stake the entire future of the company on an absurdly expensive iPhone deal. Won't be profitable until 2015? The entire mobile landscape could be completely different by that point.
They should've focused on getting exclusive access to some of the latest and greatest on Android and Windows Phone instead, and putting more captiol into improving their network. A lot of people would love to get away from AT&T and Verizon, but can't because Sprint/T-mobile simply don't have the coverage/capacity they need in their area.
"You can bet that Sony built a long-term business plan about being successful in Japan and that business plan is crumbling." -- Peter Moore, 24 hours before his Microsoft resignation
Sprint Taking iPhone 4/iPhone 4S Pre-Orders; Offers Unlimited Plans
October 6, 2011, 9:47 AM
Quick Note: Sprint to "Bet the Farm" on Apple's Next Generation iPhone
October 3, 2011, 4:40 PM
Apple's iPhone 4 Comes to Verizon Wireless With 5-device "Personal Hotspot"
January 11, 2011, 11:14 AM
Inspiron Laptops & 2-in-1 PCs
September 25, 2016, 9:00 AM
The Samsung Galaxy S7
September 14, 2016, 6:00 AM
Apple Watch 2 – Coming September 7th
September 3, 2016, 6:30 AM
Apple says “See you on the 7th.”
September 1, 2016, 6:30 AM
Apple sued because of iPhone 6 Touch Disease
August 31, 2016, 7:00 AM
Get Ready to wait in line – iPhone 7 due September.
August 18, 2016, 7:15 AM
Most Popular Articles
Smartphone Screen Protectors – What To Look For
September 21, 2016, 9:33 AM
UN Meeting to Tackle Antimicrobial Resistance
September 21, 2016, 9:52 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM
5 Cases for iPhone 7 and 7 iPhone Plus
September 18, 2016, 10:08 AM
Update: Problem-Free Galaxy Note7s CPSC Approved
September 22, 2016, 5:30 AM
Latest Blog Posts
Burlington Gun Attack
Sep 27, 2016, 5:00 AM
Who is in Risk of Getting Oral Cancer?
Sep 23, 2016, 6:02 AM
France Bans Plastic Eating Utensils in Restaurants
Sep 18, 2016, 10:49 AM
Progress Against Acute Myeloid Leukemia
Sep 17, 2016, 5:30 AM
Apple Watch Series 2 - Number 1 in the Customer Satisfaction.
Sep 7, 2016, 6:19 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information