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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...

This is a discussion for a news. To read the whole news, click here

posted on 05 May 2012, 10:00

80. axllebeer (Posts: 271; Member since: 05 Apr 2011)


If this trend continues, assuming the new BB 10 platform is as all that it is claiming that it will be, I could see carriers starting to push those new handsets more so than the iPhone. RIM has a history of building good relationships with carriers in the past and this may plug some holes in the BlackBerry ship and ever drain some water out of it. There are those that swear by the iPhone and those that are just coming into the smartphone world for the 1st time. With the incoming push of Windows Phone, and the possibilities soon to arrive with BB10, Apple might finally take a hit as carriers will have devices to push that are more profitable to them. And if if it were your company loosing $, wouldn't you try to sell a product that makes you more money?

posted on 05 May 2012, 12:16

116. sithman (banned) (Posts: 299; Member since: 21 Apr 2012)


So how will this be the downfall then? Apple is not a stupid company, they know what they're doing. They're in the position they're in for nothing. They r a top notch company, that knows how to stay that way.

posted on 05 May 2012, 14:38

121. vincentguariglia (Posts: 13; Member since: 28 Apr 2012)


Salesman are already pushing the more profitable phones over iPhones. Most places don't pay commissions for iPhone sales.

posted on 06 May 2012, 01:58

133. Forsaken77 (Posts: 553; Member since: 09 Jun 2011)


Sprint doesn't make much off the iPhone, but Verizon and especially AT&T make huge money off it. Because AT&T was the only company that offered the iPhone for so long, so many people flocked to them because, at the time, it was the only real smartphone out. So they got a huge influx of subscribers and most never left. But I think Sprint made a huge mistake with that deal with Apple. Sprint was already losing money left & right, then they go and do this deal that basically putts the nail in their coffin? Dan Hesse shouldn't be getting 3 million in bonuses (not including his normal salary) because he's dug Sprint deeper into the ground than ever before. I live in NY, Long Island, and my sister and her husband have Sprint. They can't wait till their contract expires so they can switch. I was even gonna buy her a new Galaxy Nexus from Sprint for her birthday but she said no cause they didn't want to extend their contract any longer. Sprint offers unlimited data but what good is it if it's faster to drive around a neighborhood looking for an open wifi signal? Let's just get the AT&V duopoly over already.

posted on 04 May 2012, 23:05 13

3. AndroidShiz (Posts: 154; Member since: 08 Nov 2011)


If Apple is on your carrier, then Apple is the reason why everyone's cell phone bill is astronomical no matter what smart phone you use.

posted on 05 May 2012, 09:22

52. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)


Too bad cell phone plans have dropped drastically since 2007

posted on 04 May 2012, 23:10 10

5. clevername (Posts: 1436; Member since: 11 Jul 2008)


That is a man who loves his comapny

posted on 04 May 2012, 23:10 4

6. joey18 (Posts: 589; Member since: 20 Jul 2010)


This to bad apple are overprice so sprint dont need the iphone needs to bring more android phones 2 years w the iphone everthing are over price apps cables head phones insurence the sprint iphone dont run over 3g only 2g h slow less people buy the iphone apple will go for make more cheap prices some people complaint the samsung galaxy cheap plastic but is better then iphone

posted on 04 May 2012, 23:18 9

7. Contreramanjaro (Posts: 153; Member since: 04 Dec 2011)


What the hell did you just write? There are many things wrong with your statement but by your lack of skill in English I'm going to ask that you either clarify or not comment. This may seem a little harsh but you didn't even use a period. Rules in language are there to help with clarity.

posted on 04 May 2012, 23:24 7

9. AndroidShiz (Posts: 154; Member since: 08 Nov 2011)


Oh my gosh! I'm dying over here with tears! I was like the Hulk having a baby with Snookie makes more sense than this guy. I'm assuming he ain't using Google translate.

posted on 05 May 2012, 10:06 1

85. thedarkside (Posts: 654; Member since: 30 Apr 2012)


we had to go with the hulk? he would never have sex with snooki... come on now!!!

posted on 04 May 2012, 23:53 1

14. djg71087 (Posts: 70; Member since: 10 Oct 2010)


hahahahaha!!!!! i can't believe what i just read...

posted on 05 May 2012, 00:39

21. bvalde09 (Posts: 182; Member since: 22 Nov 2011)


@joey18 I didnt understand anything at all. Comment below thumbs up LMFAO

posted on 05 May 2012, 05:09

30. m.garz (Posts: 61; Member since: 08 Oct 2010)


epic comment is epic.. hahahah

posted on 05 May 2012, 05:23 1

31. Phullofphil (Posts: 801; Member since: 10 Feb 2009)


I understood it only because I type like that to. Leave the poor guy alone I am typing good right now only cause I am on my big tablet. On my phone it gets bad some times. What's weird is if you just read through it fast you can fill in the blanks yourself. I learn that if you read enough forums and coment sections it's a prerequisite.

posted on 05 May 2012, 08:56

44. ibap (Posts: 765; Member since: 09 Sep 2009)


Another example of what is wrong with touchscreen keyboards and the difficulty of editing what one writes on them. I just read about a new editing approach for iPads, but it is unclear if Apple will adopt it. They'd have to admit the current scheme is so bad that many people simply don't edit. Like the guy that wrote the piece at the top of this string. Either that or he was stoned. Or both.

posted on 04 May 2012, 23:20 6

8. AndroidShiz (Posts: 154; Member since: 08 Nov 2011)


No, that is a man who is scared crapless over the possibly of losing his job. The iPhone literally is like eating forbidden fruit, looks tasty, but inside it's full of worms, and certain death... of your company.

posted on 05 May 2012, 05:36

33. TROLL (banned) (Posts: 4851; Member since: 13 Apr 2012)


ThE FRUIT MASTERS IN DISGUISE....

posted on 05 May 2012, 09:00

46. ibap (Posts: 765; Member since: 09 Sep 2009)


Also symptomatic of how far out of whack CEO salaries are. He probably won't notice the difference.

posted on 04 May 2012, 23:29 2

12. AndroidShiz (Posts: 154; Member since: 08 Nov 2011)


Hey man, I don't know what you wrote, but you might as well give yourself a thumbs down and go see what's playing on Netflix.

posted on 05 May 2012, 00:40 3

22. AndroidShiz (Posts: 154; Member since: 08 Nov 2011)


Dwayne Meighan reporting live from Stoolbend.

posted on 05 May 2012, 00:42 1

23. Lousclues (Posts: 34; Member since: 02 Mar 2012)


Don't mind these guys man. They're just trying to clown you to look cool. I understood what you said. Then again, I'm not stupid so who knows lol

posted on 05 May 2012, 05:33

32. Phullofphil (Posts: 801; Member since: 10 Feb 2009)


I will translate......it's to bad apple is overpriced, sprint don't need the iPhone. They need more android phones. 2 years with an iPhone contract sucks cause all there accessories are over priced. Such as there apps(actualy there cheap), but cables, headphones, insurence and so on cost to much. The sprint iPhone only runs not on 3G but 2g( I think he means it's slow or somthing) blah blah I understood the rest but the only thing of use was I guess the Samsung galaxy is cheap plastic but he likes it better than the iPhone. I guess I speak gibberish. This was suposed to be in reaponce to coment 6

posted on 05 May 2012, 08:59 1

45. ibap (Posts: 765; Member since: 09 Sep 2009)


Yet another example of how bad touch screens are and how people don't edit what they end up with. Even this explanation is full of bad spelling and grammar.

posted on 05 May 2012, 09:19

50. thedarkside (Posts: 654; Member since: 30 Apr 2012)


that is the longest sentence i've ever read.

posted on 05 May 2012, 10:08

87. thedarkside (Posts: 654; Member since: 30 Apr 2012)


longest. sentence. ever.

posted on 04 May 2012, 23:24 1

10. PC_Surgeon (Posts: 7; Member since: 27 Apr 2012)


He should be taking a pay cut and using those funds to fix their horrid service. Nothing could make me go back to sprint. Not even if the iPhone was exclusive to them. Reason? When it takes 2-3 minutes to load a web page with only text its time to throw the phone out with the carrier. Simply disgusting service. Bye.

posted on 04 May 2012, 23:32 3

13. Contreramanjaro (Posts: 153; Member since: 04 Dec 2011)


This is actually what is happening. They are doing network upgrades and calling it Network Vision or something similar. Go to network.sprint.com to see how many updates they're doing. I think it looks rather ambitious for a company losing so much money. Also, I'd like to point out that spectrum and congestion are going to very soon be a bigger issue all around. Sprint has at least one thing going for them, spectrum. But that's a hope for the future more than anything.

posted on 05 May 2012, 05:39 1

34. Phullofphil (Posts: 801; Member since: 10 Feb 2009)


Spectrum thing is a scam. LTE was suposed to cure that problem or so they said but there Verizon is saying they are running out soon. It's not true. Or there claims about LTE are false. My galaxy nexus gets 25 megabytes a second down load but I am yet to down load an actual file that fast. It takes me five seconds sometimes to download a 5 or less megabyte app or song.

posted on 05 May 2012, 08:32

42. dmckay12 (Posts: 243; Member since: 25 Feb 2012)


I think that you have your math wrong. I believe that you are referring to Mb (the most likely unit) as your download speed rather than MB (what you said). 8 Mb=1 MB (about). If this is true, then 5 seconds is understandable when leaving time for the download to begin and be processed.

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