Rising Apple iPhone subsidy costs force Sprint CEO Dan Hesse to take pay cut
0. phoneArena 04 May 2012, 22:32 posted on
Thanks to the higher costs involved in subsidizing Sprint customers purchase of the Apple iPhone, the carrier's CEO Dan Hesse said that he would be taking a pay cut in 2012; Hesse's pay will be reduced $346,000 to give back incentive pay he already received and he will forfeit $3.25 million dollars in incentive pay...
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54. thedarkside (Posts: 652; Member since: 30 Apr 2012)
your nexus probably does get 25 mb/s download, but you also have to factor in the area you live, how many people in that area are also on that network, and out of those people, who is utilizing their data. all that factors in to how fast your phone is going to be able to process.
and are you really complaining about a 5 second download for a song?
15. jove39 (Posts: 1361; Member since: 18 Oct 2011)
Why don't they bump price of phone...or ask Apple to reduce their profit!
19. kanagadeepan (Posts: 732; Member since: 24 Jan 2012)
Do you think apple will accept, if they are asked to less their profit???
16. JBz007 (Posts: 63; Member since: 02 Mar 2012)
He seems like a good guy. I wish sprint the best. If they go down that's just less competition and higher phone bills and less jobs.
20. Jenks (Posts: 11; Member since: 30 Dec 2011)
I love how this asshole takes a pay cut & it makes the news but what you don't hear about is all of us sprint employees that just had our jobs outsourced to the Philippines. Thousands of hard working Americans out of a job & Dan takes a pay cut yea this is the article everyone should be reading right now. How about an article on us PA? I think America deserves to know about something that actually matters, FU sprint & I hope you burn in hell Dan!
24. wumberpeb (Posts: 446; Member since: 14 Mar 2011)
Sorry about your job man, but hell...everyone's call center jobs are overseas already
27. Whateverman (Posts: 3233; Member since: 17 May 2009)
Not all, Verizon Wireless doesn't have any call centers outside the US. They closed a few, but offered reps the chance to relocate to other centers.
26. Whateverman (Posts: 3233; Member since: 17 May 2009)
Yeah, that does suck! Sorry to hear that your call center is moving. With America going from a manufacturing driven economy to a service driven economy, its really f*cked up to hear we're losing those jobs too.
25. Bluesky02 (Posts: 1439; Member since: 05 Dec 2011)
Seeing over carriers selling 10millions iPhones in a week. Sprint thought ah.. We too are going to sell 10millions iPhones in a week. Then they made this thought, a deal where they thought that the iPhone was a magic device that sells by itself.
Now suddenly when iPhone sales are consistently very low compared to other carriers, Sprint losses increases.
57. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
Sprint has less than 50% of the customer base of the big 2. Considering iPhone sales were about 70% of their total smartphone sales and 44% were people who switched from other carriers I'd say the iPhone is doing what they hoped.
141. audiblenarcotic (Posts: 110; Member since: 16 Nov 2011)
As much as I dislike the iPhone and usually disagree with most of what Taco says... he is dead on with thise statement. Congrats on your first ever thumbs up from me.
28. Jenks (Posts: 11; Member since: 30 Dec 2011)
I mean it is what it is I guess,I was just disappointed to see no article about thousands of Americans losing they're jobs, it wasn't news worthy but him taking a pay cut is.
29. Sniggly (Posts: 7199; Member since: 05 Dec 2009)
Americans are losing jobs every day. A CEO taking a pay cut is news because it doesn't happen every day.
Why, yes, I'm about to go drink myself into oblivion after this awful, cynical response.
35. TROLL (banned) (Posts: 4851; Member since: 13 Apr 2012)
GOOD u deserve it... He knewd there's no
Profit in selling ip4. Apple made huge pfofit,
36. Doakie (Posts: 1369; Member since: 06 May 2009)
I'm pretty disappointed in Sprint getting dupped into such a steep deal with Apple over their iconic computer iLliterate phone. Dan you deserve to lose some personal money over penning a deal that cost your company so much while you have plenty of great phones offered that are better than the tiny 3.5" screened EVDO only dated iPhone 4S. Shame on you Dan for making a deal like that while laying off employees and having repeated nonprofitable quarters.
37. Mobile-X-Pert (Posts: 565; Member since: 20 Dec 2010)
That's the reason why T-mobile is cheaper, because they don't have the iPhone.
59. jbash (Posts: 342; Member since: 07 Feb 2011)
I work at sprint we call it the "not now network"
62. TROLL (banned) (Posts: 4851; Member since: 13 Apr 2012)
Good I respect them for that....
They didn't give a dam about
Let's hope it stays like that.
67. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
Do you care at all about reality? T-Mobile had made public statements many times saying they want an iPhone.
68. remixfa (Posts: 14223; Member since: 19 Dec 2008)
can you find a link to Tmobile publicly begging for an iphone? thanks
73. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
Apple recently expanded its iPhone lineup in the U.S. to Sprint and regional carrier C Spire, but what about T-Mobile? In a Friday statement, the carrier reiterated that it wants the iPhone, but is held back by technology issues.
79. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
Try the one below. This is a fact whether or not you want to be in denial.
84. remixfa (Posts: 14223; Member since: 19 Dec 2008)
You want it to be true.
Tmobile would never bow to apple's pricing. Look at what its doing to sprint. Tmobile would fall over with that fruit flavored noose around its neck.
When they say they want to offer a better iphone experience, they never say they have an interest in actually getting contracts with apple and selling it direct. never once did they say that. If apple would come to normal terms, sure, but we both know thats not going to happen.
Tmobile has recently acquired some ATT 3g spectrum which the iphone can run on. There are also rumors of Tmobile trying to get more of that spectrum so it can move people to that and use its current HSPA+ spectrum to launch LTE. If that ever did happen, Tmobile would become instantly compatible with all ATT phones, including the iphone.
"A better experience" without ever bowing to Apple.
78. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
This is from T-mobiles chief marketing officer. I'm sure you'd know about this since you work for them.
We’ve heard from many customers who love their T-Mobile service, but are disappointed that we don’t carry the iPhone. To these customers, first, thank you for your business. Please know that we think the iPhone is a great device and Apple knows that we’d like to add it to our line-up. Today, there are over a million T-Mobile customers using unlocked iPhones on our network. We are interested in offering all of our customers a no-compromise iPhone experience on our network.
81. remixfa (Posts: 14223; Member since: 19 Dec 2008)
yes, that is a letter that if you read between the line, says
"we are not going to carry the phone directly. We cant afford it, and frankly we dont want the expense. However, people unlock iPhones and use them on our network all the time. One day Apple might release a pentaband version of the iPhone, and then you will have working 3g on our network. Also we have just gotten ATT 3G spectrum, so your iphone will be faster in those areas"
86. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
"Please know that we think the iPhone is a great device and Apple knows that we’d like to add it to our line-up"
This is a direct quote from the CMO that says they want the iPhone. Read between the lines? It's right there in black and white. Is there any evidence that can convince you?
90. remixfa (Posts: 14223; Member since: 19 Dec 2008)
if tmobile really WANTED to add it to the line up with the way Apple currently does business, they would have done it, and they would be worse off than Sprint.
"apple knows wed like to add it to our line up" means "when they stop acting like lunatics about pricing".
94. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
You said provide a link and I did. Now you dispute a direct quote. If T-Mobile is willing to make public statements that they want the iPhone I'd say it's a safe bet they want it.
I like your paraphrase which is totally out of touch with reality.
102. remixfa (Posts: 14223; Member since: 19 Dec 2008)
hmm.. who is more likely to be right about how Tmobile runs their buisness..
.. you.. the biggest troll and most wrong person on the site..
or me.. a person that works for tmobile and is right way more often than being wrong.
think about that.
107. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
You were just wrong about T-Mobile not wanting the iPhone. Who knows more about how they do business. The CMO or Remix?
You were also wrong about Walmart. You're also wrong about the iPhone not being profitable for carriers and that's straight from the mouth of AT&T's CEO.
And that's just one this one article.
108. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
Here's another press release from T-Mobile a month later.
T-Mobile thinks the iPhone is a good device and we’ve expressed our interest to Apple to offer it to our customers. Ultimately, it is Apple’s decision. The issue remains that Apple has not developed a version of the iPhone with technology that works on our fast 3G and 4G networks. We believe a capable version of the iPhone for our 3G and 4G networks would offer an additional compelling option for our customers on a fast 4G network. However, the iPhone is not the only option to experience the benefit that smartphones offer.
109. remixfa (Posts: 14223; Member since: 19 Dec 2008)
yes, old news. moving on... oi. obviously there is just no getting through that thick ass skull of yours.
113. ngo2dd (Posts: 811; Member since: 08 Jul 2011)
wow you got owned by taco. It is not t-mobile don't want the iphone. They can afford big different. He gave you many link and you back your statement with nothing. And yes I am trolling you.
117. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
He gets owned all the time. He spouts of incorrect info and then refuses to accept the real facts when presented.
He asked for a link, which I gave him two, then he backpedaled and said that's not what they really meant.
119. remixfa (Posts: 14223; Member since: 19 Dec 2008)
you guys need to do a troll dance and make love. Will that upset gallito?
Bottom line, if Tmobile wanted the iphone bad enough, they would play ball with Apple and figure it out like sprint has. They have not done so. Thus they obviously are not willing to come to the table and meet apple's demands. Point blank. Its not a hard thing to comprehend. Making public statements to playcate the populous and making policy adjustments are 2 different things. Obviously if Tmobile REALLY wanted it, they would be able to afford it. Frikkin C-Spire has the phone and sells it cheaper than anyone, and they are a little no-nothing regional carrier.
Tmobile is not doing the greatest. Thats not because of the iphone. Thats because of bad advertising and ever changing policy stances, which i slap them for all the time.
VZW was leading in new subscribers even when they didnt have the iphone. Does it have an effect? yea. But its not the end all-be all that you idiots try to make it out to be.
136. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
68. remixfa posted on yesterday, 09:50 1
can you find a link to Tmobile publicly begging for an iphone? thanks
This comment is posted in response to #67 Show
I then post 3 links and your response is that's not what T-Mobile meant.
They specifically said we want the phone and it's Apple's decision.
137. remixfa (Posts: 14223; Member since: 19 Dec 2008)
are you really trolling on this.. still? you really are a special special little boy arent you?
find me one company that has never said one thing publicly and done something else internally. Those are PR statements, nothing more. Grow up child.
138. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
You said T-Mobile didn't say it then you changed you're tune. Who's the child?
140. remixfa (Posts: 14223; Member since: 19 Dec 2008)
they didnt say it. they never said "We are begging for an iphone" publicly, which was what you claimed they said. Never once did they "BEG" for anything. Making a public statement saying they are happy to talk with Apple about possibilities and "begging" are 2 different things. Do you really think they never talked with apple? Do you not think they tried to work out a deal? What kind of fool are you really? Of COURSE they tried. They are not willing to pay the apple fees and pricing that apple demands. So when they say the ball is in Apple's court, they are saying "go to hell with your pricing, but when your ready to be reasonable, we can talk again". They cant afford the crap pill that they shoved down ATT/VZW's throat. Technically, Sprint couldnt afford it anyways, but Hesse tried.
Get... A... Clue...
41. InspectorGadget80 (Posts: 6802; Member since: 26 Mar 2011)
Every CEO and EXECUTIVE should take a pay cut.
48. remixfa (Posts: 14223; Member since: 19 Dec 2008)
while i still cant believe he let Jobs put him over a barrel and have his way with him, this is a great gesture by Hesse. Its not often you see a CEO of a MAJOR corporation taking such a drastic pay cut to help the bottom line of his company (small company CEO's do it all the time to survive). While its a drop in the bucket compared to what he promised apple, the gesture itself is grand.
56. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
The total lack of being in touch with reality is mind boggling for some of the rabid android fans.
iPhone is bad for business- if you listen to Randal Stephenson's interview just above he says that before the iPhone AT&T profit margins were 32%. Now in 2012 they're 41%. Saying iPhone is bad for profit shows you have no concept of the mobile industry or reality.
iPhone is overpriced- this statement shows you have a complete lack of understanding of how markets work. The market decides the price I can charge. If I overprice my product then no one will buy it and I'll be forced to lower the price. The fact iPhone is selling in record numbers shows in fact it's not overpriced.
Carriers don't need the iPhone- no one forces carriers to do business with Apple. The fact the carriers all want the iPhone shows the iPhone is good for business. Some reasons why? iPhone customers have lower churn, higher satisfaction rates and iPhone is more likely to get customers to go from a basic to a smartphone than any other phone. If you read Sprints Q1 results 44% of the 1.5 million iPhones they sold were to people that switched to Sprint. That is why carriers want an iPhone.
Apple is greedy- every corporation is out to make money. The fact Apple makes more money shows they have a better business plan in place. Companies who make less money don't do so out of the goodness of their heart. They're just less successful. Their products aren't in demand and Apple's are.
61. jbash (Posts: 342; Member since: 07 Feb 2011)
I hate the iPhone but I agree there is not another company as good as them at selling their product.
71. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
Hating a phone is an illogical emotion. Why would you hate a cell phone? That makes no sense. The world is full of haters who get upset at seeing success whether it's an individual or a company.
74. remixfa (Posts: 14223; Member since: 19 Dec 2008)
says the child that takes a swipe at android with nearly every post he makes.
106. jbash (Posts: 342; Member since: 07 Feb 2011)
the reason i say hate is because everytime that i do something that easy and efficent on any other device, it either is in another place instead of in the app being used or it is not capable of doing it all together
65. TROLL (banned) (Posts: 4851; Member since: 13 Apr 2012)
Is that TACO talking wisely first time
By not trolling wow...
75. remixfa (Posts: 14223; Member since: 19 Dec 2008)
generally when taco tries to act like this, it means he got a warning letter that he is about to be banned again. dont worry, he wont even last 24 hrs before he goes back to regular taco.
72. remixfa (Posts: 14223; Member since: 19 Dec 2008)
in a true free market, the market decides the price. in an artificial market like the one apple has created, it controls the price. it controls the price that it sells to the carriers, and apple controls the price the carriers are allowed to sell the iphone at, creating artificially high prices over long periods than normal. Remember how you always joke about android phones going on sale sooner than an iphone? Thats because andriod phones are controlled by free market pressure, where apple refuses to bow to free market. That is also why apple's sales spike and then have a steady downward trend with every model. Allowing the market to make the price adjustments on the iphone would steady out their sales.. but apple doesnt care about that as long as they make their massive profits.
Taco is TRYING to look like he isnt a complete troll, but if you actually look at what he is writing, you realize its a thin veiled act. A few actual points spread between a bunch of BS.
Cite your sources taco.
82. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
In a free market a company is free to sell their product at any price they want. Android phones have to get discounted because they can't compete at higher prices. You think carriers would slash their prices if they were selling at $300 or even $200.
iPhone sells at the prices set therefore the price doesn't drop.
88. remixfa (Posts: 14223; Member since: 19 Dec 2008)
ahh.. regular taco is already starting to return.
Android has increased competition in its space, which is what pushes the prices down. Again, Apple's space is artificial and they do everything they can to resist market pressure for as long as possible.
If the price didnt drop, why is the i4s on sale for $100 at WALMART??.. yup.. thats where I go to get all my high class stuff.
91. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
UPDATE: Walmart confirmed to 9to5Mac that the retail chain “experienced a pricing error in limited stores” yesterday and prices have now returned to their original amounts.
How is the price artificial if people are buying it at that price?
96. remixfa (Posts: 14223; Member since: 19 Dec 2008)
wow.. quite the error. I hope a lot of people took advantage.
Taco, you need to take an economics class. im not going to try to explain something knowing that there is just a blank stare on the other end of the conversation.
99. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
Well your whole Walmart argument is completely shut down.
So according to your view of economics I should sell my product for less than I'm able to why? Explain to me how that makes business sense.
100. remixfa (Posts: 14223; Member since: 19 Dec 2008)
"Taco, you need to take an economics class. im not going to try to explain something knowing that there is just a blank stare on the other end of the conversation."
again, i already answered your question. learn to read.
105. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
Seriously why would a company drop it's price when it sells in record numbers at the current price. Give me the economic theory you're talking about.