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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, 09:23

54. thedarkside (Posts: 654; 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?

posted on 04 May 2012, 23:54 2

15. jove39 (Posts: 1889; Member since: 18 Oct 2011)


Why don't they bump price of phone...or ask Apple to reduce their profit!

posted on 05 May 2012, 00:34 2

19. kanagadeepan (Posts: 945; Member since: 24 Jan 2012)


Do you think apple will accept, if they are asked to less their profit???

posted on 05 May 2012, 07:23

38. bintheham (Posts: 13; Member since: 27 Feb 2012)


nope! :)

posted on 04 May 2012, 23:57 2

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.

posted on 05 May 2012, 00:35 2

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!

posted on 05 May 2012, 00:48

24. wumberpeb (Posts: 453; Member since: 14 Mar 2011)


Sorry about your job man, but hell...everyone's call center jobs are overseas already

posted on 05 May 2012, 01:24

27. Whateverman (Posts: 3271; 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.

posted on 05 May 2012, 01:21 1

26. Whateverman (Posts: 3271; 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.

posted on 05 May 2012, 01:08 1

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.

posted on 05 May 2012, 09:38 2

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.

posted on 07 May 2012, 14:06

141. audiblenarcotic (Posts: 111; 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.

posted on 05 May 2012, 02:22 1

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.

posted on 05 May 2012, 04:36

29. Sniggly (Posts: 7305; 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.

posted on 05 May 2012, 05:39 2

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,
While they.....

posted on 05 May 2012, 05:50

36. Doakie (Posts: 2108; 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.

posted on 05 May 2012, 06:10 5

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.

posted on 05 May 2012, 07:26

39. bintheham (Posts: 13; Member since: 27 Feb 2012)


Sprint...the nowhere network

posted on 05 May 2012, 09:39 1

59. jbash (Posts: 345; Member since: 07 Feb 2011)


I work at sprint we call it the "not now network"

posted on 05 May 2012, 09:44 1

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


Good I respect them for that....
They didn't give a dam about

Apple products....
Let's hope it stays like that.

posted on 05 May 2012, 09:49

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.

posted on 05 May 2012, 09:50 1

68. remixfa (Posts: 14255; Member since: 19 Dec 2008)


can you find a link to Tmobile publicly begging for an iphone? thanks

posted on 05 May 2012, 09:55

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


http://www.pcmag.com/article2/0,2817,2395097,00.asp

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.

posted on 05 May 2012, 09:58 1

77. remixfa (Posts: 14255; Member since: 19 Dec 2008)


your link is crap.

posted on 05 May 2012, 09:59

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.

posted on 05 May 2012, 10:06 2

84. remixfa (Posts: 14255; 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.

posted on 05 May 2012, 09:58

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.

http://blog.t-mobile.com/2011/09/26/about-the-iphone-a-letter-to-t-mobile-customers/

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.

posted on 05 May 2012, 10:01 1

81. remixfa (Posts: 14255; 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"

posted on 05 May 2012, 10:07

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?

posted on 05 May 2012, 10:12 1

90. remixfa (Posts: 14255; Member since: 19 Dec 2008)


taco,
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".

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