Sprint announces Q4 results: sells a pile of iPhones, loses money
0. phoneArena 07 Feb 2013, 08:03 posted on
Sprint has published its financial results for the fourth quarter (Q4) of the year (2012), and the numbers aren't really full of win. Sadly, the has taken its Q3 loss to new heights. While carrier number 3 in the US lost $767 million in the third financial quarter of 2012, the Q4 figure stands at the much more dangerous $1.32 billion...
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1. drpain (Posts: 85; Member since: 07 Feb 2013)
Sprint starts carrying the iPhone after paying tons of money for it, right when it starts to die
5. Mxyzptlk (Posts: 11361; Member since: 21 Apr 2012)
Bad move to carry the best phone on the market? Nope. If Sprint hadn't taken the iPhone, they would be in a far worse position. It's because of the iPhone that they are still alive now.
10. rusticguy (Posts: 2828; Member since: 11 Aug 2012)
Oh really? 2.2 mil iphones sales keeping them afloat. What BS....
14. Mxyzptlk (Posts: 11361; Member since: 21 Apr 2012)
If Sprint didn't get the iPhone, they would have been deep in the red.
26. lsutigers (Posts: 819; Member since: 08 Mar 2009)
Actually, selling the iPhone costs Sprint (and AT&T + Verizon) a lot more, up front, than the immediate realized benefit. The idea with selling iPhones is you (carrier) get and RETAIN a high ARPU customer which should pay off in the long run when they renew their contracts. So, right now those 2.2 million customers cost Sprint a lot of money in subsidies.
Either way, carrying the iPhone was a smart move for Sprint, they are selling a ton of them and their upgraded network is solid, very fast and great coverage.
11. downphoenix (Posts: 3155; Member since: 19 Jun 2010)
by that logic, T-mobile would be in the grave by now. But they aren't.
15. Mxyzptlk (Posts: 11361; Member since: 21 Apr 2012)
It's possible to run the iPhone on Tmobile. If they were using CDMA like Sprint, they would. But you know you can buy the iPhone unlocked or DIY.
42. letgomyeggroll (Posts: 138; Member since: 13 Jun 2012)
Sprint and TMObile are 2 different type of network. So that means, no you cant unlock iphone from Sprint to work Tmobile
22. 14545 (Posts: 1461; Member since: 22 Nov 2011)
You really are slow, aren't you? They have been bleeding red at a faster rate SINCE GETTING THE iPHONE, than before. The iPhone will bankrupt them, network investment wouldn't have. Geez, stop being a stupid fan boy.
23. Mxyzptlk (Posts: 11361; Member since: 21 Apr 2012)
Why don't you read the articles first. Sprint adding the iPhone netted them millions of subscribers.
25. 14545 (Posts: 1461; Member since: 22 Nov 2011)
God, your reading comprehension is about as bad as your phone choices.
On a brighter note, the carrier has had its best quarter ever when comes to iPhone sales, managing to move over 2.2 million units. In total, the carrier has sold 6.1 million smartphones. During this quarter, Sprint has managed to add *605,000* new customers, although not all of these are *post-paid.*
So, that means that at best, 1.5 million of these iPhones are UPGRADES. Meaning, it cost the company more money than if they had upgraded to a W8/Android/BB phone. That is the absolutely BEST CASE SCENARIO, but a more realistic scenario is that only about 100-200k were iphone buyers from another carrier. AGAIN, STOP BEING A STUPID, POS FANBOY. Why don't you take your own f..king advice and read the d@mn article you f..king idiot. COMPREHENDE?
Actually, according to Engadget, they only added 401k new POST PAID customers, and you can only get the iPhone post paid, so my numbers above are even worse than I stated.
28. lsutigers (Posts: 819; Member since: 08 Mar 2009)
Actually, instead of making up those iPhone new sales vs upgrade numbers, look up the facts. Sprint sells more iPhones to new customers (coming from another network) than AT&T and Verizon combined. I believe it was even posted on this site about 6 months or a year ago. If I remember correctly, 5 out of 10 Sprint iPhone customers come from another carrier. AT&T and VZW new iPhone sales ratio is 2 or 3 out of 10. Look it up.
36. Mxyzptlk (Posts: 11361; Member since: 21 Apr 2012)
Someone needs a time out. Read the article and you'll see why Sprint is bleeding red. It's not because of the iPhone. They are actually gaining customers because of it.
And my goodness, you cuss and throw a temper worse than Sniggly does.
41. letgomyeggroll (Posts: 138; Member since: 13 Jun 2012)
No it only that it added 600,000 new subscribers!!!!
27. lsutigers (Posts: 819; Member since: 08 Mar 2009)
@ 14545...Did you read the article?
The only reason they posted such a big loss this quarter is because of Network Vision upgrades, decommissioning the Nextel Network (which will save them a ton of money) and Hurricane Sandy infrastructure repairs.
The iPhone will NOT bankrupt them, they are selling a ton of them and that equals revenue.
30. 14545 (Posts: 1461; Member since: 22 Nov 2011)
D@mn you iphone lovers are ridiculous, my comment had very little to do with WHERE the loss was coming from. Not that you can read, but it had to do with the fact that the network is costing them some 1.5 million subs a quarter, read the actual press release, so who cares if they have a few extra pimples that buy a iphone? The point is, these "one contract" subs will leave sprint high and dry at the end of that term (rightly so) with their crappy network. The added cost of network improvements, in addition to greater sub fees due to selling more expensive phones, will spell the end for sprint. Therefore, yes, it is the iPhone(or misallocation of funds for a more proper name) that will sink them. What do you do for work? I hope it's nothing financial related, because I wouldn't trust you to invest a dollar. Much less run a multi billion dollar company. Hesse is, and has been running sprint into the ground for years, the iPhone was just the nail in the coffin. iPhones may net them a few extra, idiot, subs for a few more quarters, but after anyone has experienced the network they run screaming. So, the iPhone is a net negative because it is liability, not an asset. Network buildout is an ASSET. But yeah, clearly you have it all figured out.
31. lsutigers (Posts: 819; Member since: 08 Mar 2009)
Whatever, no sense in arguing with the ignorant.
35. Mxyzptlk (Posts: 11361; Member since: 21 Apr 2012)
Exactly. I don't understand why he can not see that.
32. corporateJP (Posts: 2431; Member since: 28 Nov 2009)
Opinions are free to have and make.
Your opinions, however, just don't seem like they have a sizable amount of intelligent thought behind them.
33. oister85 (Posts: 473; Member since: 27 Apr 2012)
T-Mobil doesn't have the iphone and is ! Alive
37. ngo2dd (Posts: 896; Member since: 08 Jul 2011)
That is why they are getting the iPhone. As much hate you people give the iPhone they are a big reason why sprint was able to gain subscriber. T-mobile is still smaller and losing money.
43. sectime (unregistered)
Where would Tmobile be today without the cash and spectrum from the failed merger? Tmobile must be doomed because guess what IPHONE :)
40. letgomyeggroll (Posts: 138; Member since: 13 Jun 2012)
No obtaining the Iphone was not the best thing!!!!!! It costed them millions to buy in to obtain the IPhone!!!!! You see the writer did not mention how much it costed Sprint to have the rights to sell the IPhones. And how much they still owe on it. This is the problem, buying into a product to have the right to sell versus just selling products that wants you to sell. 2.2 millions out of 6.1 millions smart phone sold is not that impressive.Especially when they got so many used Iphones to resell.
Mxyzptlk, everytime you see a post with the work IPhone and impressive, you think its positive.
21. 14545 (Posts: 1461; Member since: 22 Nov 2011)
I said it was a dumb move from minute one. From a business standpoint, you don't do that. People have been complaining for quite a while about the "network", but instead of spending that money on maintenance, 4g rollout(LTE, not wimax) and building more towers, they wasted it on a stupid phone that costs them more money and is really only used by people upgrading. The iPhone is not a "new customer" draw. Not when you have such a crap network as they do. T-mo made the smart decision by telling apple no thanks.
2. sectime (unregistered)
But sadly consistent for Sprint since Nextel merger.
3. richardyarrell2011 (banned) (Posts: 510; Member since: 16 Mar 2011)
It's clearly taking much longer for Sprints LTE network than Mr. Hesse planned. Good luck to them i wonder how many Htc Evo 4g Lte devices as well as Galaxy Note 2 devices they sold. I wish carriers would break down in that manor.
4. CfullerTX (Posts: 19; Member since: 06 Aug 2012)
Despite the loss I'm willing to bet that the merger (barring any setbacks from ATT/Verizon/Tmobile) will put them back on track. I have a few friends that are reps for various phone manufacturers and they are telling me that the devices coming down the pipe for sprint are top notch. Look at the Optimus G. Bar none the best phone out there IMO. One can hope that the only unlimited network would be able to stay afloat lol.
6. johnbftl (Posts: 281; Member since: 09 Jun 2012)
Their devices may be top notch but their network is garbage. The company is run by a complete moron. They constantly overspend. They overspent on Nextel, the overspent on the iPhone, they overspent on a WiMAX network that's "4G" signal is about the same speed as competitors' 3G speeds in most congested metropolitan areas. They have shown a loss almost every quarter since they acquired Nextel. There is nothing that can put them back in the black. Even that mighty U word.
7. serialOC (Posts: 4; Member since: 18 Jan 2013)
In our area sprint newtork is awesome. People should check the coverage maps provided by every carrier before they commit to a phone contract.
8. mikejones619 (unregistered)
Sprint is a very liberal run company the fact that they overspend,and lose money every quarter should not be a surprise
to anyone.Sprint is being run by the same people with the same ideas that run our country right now.Our country is leading from behind,is going broke,and yet we just keep spending
does anyone else see the connection here?something to think
about next time you vote lol
19. emcdonald75 (Posts: 67; Member since: 07 Nov 2012)
I get so sick of this misleading crap. This is a Mobile site so spread that ignorant, Tea Party mess elsewhere.
20. cowboysfan032970 (Posts: 7; Member since: 09 Jun 2012)
sorry but mikejones is correct and i don't think its tea party related its just the facts and common sense really,sorry but the truth hurts sometimes.
29. lsutigers (Posts: 819; Member since: 08 Mar 2009)
Actually I've been to a few of the newly upgraded Sprint markets and their LTE network is awesome. Their coverage has always been good. Call it overspending but it had to be done, it will save the company millions of dollars in the long run.
12. firestarter2 (Posts: 16; Member since: 24 Jan 2012)
Sprint seems to always make the wrong move sad
16. scsa852k (Posts: 329; Member since: 16 Oct 2012)
T-Mo will surpass Sprint this year for sure as #3.
AT&T could be threatened also.
18. downphoenix (Posts: 3155; Member since: 19 Jun 2010)
LOL. They got about 20 million subs to get to that mark. I dont see them getting that many in one year.