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.
"The Space Elevator will be built about 50 years after everyone stops laughing" -- Sir Arthur C. Clarke
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
Microsoft Launches Budget Lumia 640/640 XL; No High-End Devices Until This Fall
March 4, 2015, 9:10 AM
Finished Apple Watch Expected to be Showcased at"Spring Forward" Mar. 9 Event
February 26, 2015, 12:17 PM
Google Preps Pixel 2 ChromeBook, New X Server Replacement "Freon"
February 24, 2015, 11:12 PM
Report: Samsung Semiconductor Bounces Back w/ iPhone SoC and Memory Orders
February 24, 2015, 1:40 PM
Comcast Borrows Apple's Branding Flourishes for Its Remotes
February 24, 2015, 11:32 AM
NVIDIA Bows to Outraged Overclockers, Will Restore Feature in Upcoming Driver
February 23, 2015, 12:30 PM
Most Popular Articles
FCC Bans Data Discrimination, Defies Comcast, Adopting Net Neutrality Regulation
February 26, 2015, 4:03 PM
Google Steps up Snub of Adobe Flash, Auto-Converting Flash Ads to HTML5
February 25, 2015, 6:16 PM
Windows 10 Adds USB 3.1 for Dual-Role Peripherals, External Display Support
February 27, 2015, 11:39 AM
Australian Engineers Successfully Developed 3D-Printed Jet Engines
March 2, 2015, 11:08 AM
Smartphone STD Scanner Dongle Can Detect HIV in Just 15 Minutes
February 26, 2015, 11:04 AM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information