x PhoneArena is hiring! Reviewer in the USA

Sprint won’t make profit out of the iPhone until 2015

Posted: , by Victor H.

Tags :

Sprint won’t make profit out of the iPhone until 2015
Sprint’s chief executive Dan Hesse bet the farm on getting the iPhone to the nation’s third-largest carrier in a $15.5 billion deal spanning over the next four years, but will the operator ever profit from the iPhone? If you ask Hesse, the decision he took is the right one and while the fruits of it aren’t immediately visible, it will pay-off in the long term. But looking at the present, it’s a tough time for the carrier and the CEO will be the first to confirm it as he slashed $3.25 million off its salary to please shareholders. 

And about that iPhone? “We’re very happy with it,” Hesse said at the company’s annual shareholders meeting. “Carrying the iPhone will be quite profitable.”

The main benefit the Sprint chief executive saw is the slow down of subscriber turnover and the creation of a new segment of higher-value subscribers.

“We believe in the long term,” Hesse said. “And over time we will make more money on iPhone customers than we will on other customers.”

So far, Sprint has gotten some positive results. Revenue per user increased 6.9%, the biggest growth ever recorded in the US, so maybe indeed all it really takes is time.

source: AllThingsD

38 Comments
  • Options
    Close






posted on 16 May 2012, 09:39 11

1. android_hitman (unregistered)


by then iPhone will not be so popular anymore :) so no more profit for you greedy Sprint

posted on 16 May 2012, 10:09 1

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


Y won't it b?

posted on 16 May 2012, 09:59 8

2. RoyalTroll (banned) (Posts: 32; Member since: 16 May 2012)


Exactly, by the iPhone won't be as popular especially with bb10 and wp8 coming out. People get bored of the same s**t and eventually they will switch.

posted on 16 May 2012, 10:04 6

3. bragzter (Posts: 52; Member since: 21 Feb 2012)


Apple is asking too much from carriers. So even if the carriers don't make any profit, they're already got paid, thus increasing the bottom line and smiling all the way to the bank.

posted on 16 May 2012, 10:05 8

4. Sniggly (Posts: 7305; Member since: 05 Dec 2009)


You forgot the part where you corroborate the headline with content in the article. But I'll go ahead and do it for you:

"By its own admission, Sprint won’t profit from the device until 2015."

Direct quote from the AllThingsD article.

Now the trick will be to see if Sprint survives until 2015.

posted on 16 May 2012, 10:11 3

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


Well said sniggly. Sprint was in trouble long before they got the iPhone. It's saving the subscribers, that's a plus rite there.

posted on 16 May 2012, 10:16 6

8. Sniggly (Posts: 7305; Member since: 05 Dec 2009)


I think what's really going to help Sprint is if they get a worthwhile 4G network up and running. WiMax was their biggest mistake ever.

posted on 16 May 2012, 18:51

29. miles16852 (Posts: 241; Member since: 20 Oct 2011)


Well Sniggly, maybe YOU should kick Dan Hesse out of his chair and take over, then we will surely see Sprint DIE WAY BEFORE 2015!! Ill bet the farm Dan Hesse and SPRINT will be around longer then you will live!

posted on 16 May 2012, 20:07 1

30. Sniggly (Posts: 7305; Member since: 05 Dec 2009)


Lol, u mad bro?

posted on 16 May 2012, 20:12

31. miles16852 (Posts: 241; Member since: 20 Oct 2011)


nope! and im not a bro either! i dont talk ghetto! but your business sense sure is ghetto!

posted on 16 May 2012, 20:14

32. miles16852 (Posts: 241; Member since: 20 Oct 2011)


i dont have sprint either, i have Tmobile :-) so why would i be mad! or is it just because you try to read how sprint will die? lol, your just guessing like the rest of the so called commentors about sprint dying,! just sounds like you jealous instead

posted on 16 May 2012, 23:15 1

36. Sniggly (Posts: 7305; Member since: 05 Dec 2009)


I'm sorry, refresh my memory; who are you and why should I pay attention to you, like, ever?

And... Why should I be jealous?

posted on 16 May 2012, 10:08 5

5. jmoita2 (Posts: 930; Member since: 23 Dec 2011)


Well, you make a deal with the Devil guess what??? You get screwed.

posted on 16 May 2012, 10:18 4

9. bubbadoes (Posts: 1151; Member since: 03 May 2012)


good luck!!! the iphone will be extinct by then....

posted on 16 May 2012, 10:34 1

10. ZayZay (Posts: 571; Member since: 26 Feb 2011)


I don't see how the iphone will be "extinct"... Sure it's "boring"... but won't be "extinct"... with all the people having macs and the sync and ease of use... People will still buy.... But by then Sprint might be "extinct"

posted on 16 May 2012, 11:10 3

11. SoJUICED (Posts: 11; Member since: 14 May 2010)


well sprint is at its largest subcriber base ever and continuing to climb...

posted on 16 May 2012, 11:39 1

13. 14545 (Posts: 1604; Member since: 22 Nov 2011)


As with everything, this is the new device effect. So when the shininess of the new iPhone being on their network wears off they will be back at square one. At crappy network with subs leaving hand over fist. Like I've said numerous times, network first, then focus on the phones. This will sink them before they are ever profitable.

posted on 16 May 2012, 16:54 1

27. lsutigers (Posts: 820; Member since: 08 Mar 2009)


I see your point but subscibers probably wont be leaving Sprint once their Network Vision (3G, 4G and HD Voice upgrades) are in place.

posted on 16 May 2012, 11:12 6

12. jove39 (Posts: 1888; Member since: 18 Oct 2011)


Well...carriers need to stand together against Apple...and ask for price reduction!

posted on 16 May 2012, 11:49

14. Jeradiah3 (Posts: 1045; Member since: 11 Feb 2010)


Sprint is trying to take a page from AT&T and use the iPhone as a way to make themselves a respected company again. this isnt 2007 where the amount smartphone companies were almost nonexistant...............this is 2012 and there are TV companies (Sony and LG) that have their own Smartphones!!

Sprint is too little, too late to bank on Apple to bail them out of "the red!" the other 3 major carriers have smartphones that are better than Apple when it comes to screen size, PRICE, specifications, capability, and many others. Sprint may not last till 2015 with the business practices that they're doing

posted on 16 May 2012, 12:15 1

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


Those phones are not better when it comes to user satisfaction, return rate, failure rate, customer loyalty and sales.

iPhone dominates android

posted on 16 May 2012, 12:26 3

16. Sniggly (Posts: 7305; Member since: 05 Dec 2009)


Your first sentence was fairly correct.

The second sentence is clearly false. I'd explain why, but you never get it when I do.

Slightly better does not equal domination.

posted on 16 May 2012, 20:16 1

33. miles16852 (Posts: 241; Member since: 20 Oct 2011)


where? in your world maybe!

posted on 16 May 2012, 12:47 3

17. jove39 (Posts: 1888; Member since: 18 Oct 2011)


May be Sprint will learn it with time...and start promoting Android and Windows Phone like Verizon and ATT have started...to make for some lost traction due to carrying burden of iPhone.

posted on 16 May 2012, 12:48 1

18. jove39 (Posts: 1888; Member since: 18 Oct 2011)


I just liked writing iPhone a burden...lol

posted on 16 May 2012, 13:06 2

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


The problem is customers don't want android or Windows phone

posted on 16 May 2012, 13:12 4

20. Sniggly (Posts: 7305; Member since: 05 Dec 2009)


56 percent worldwide market share proves you wrong.

posted on 16 May 2012, 13:42 2

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


yea, except that android has more than double the world wide market share of iOS and growing faster than iOS by a wide margin.

Last I looked, iOS was nearly stagnant in Q1, didnt sell as well as Samsung phones, and had about the same growth world wide as BADA..
yup.. thats the ultimate platform alright.

posted on 16 May 2012, 14:00

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


Customers think so and study after study proves it.

posted on 16 May 2012, 14:14 2

24. Sniggly (Posts: 7305; Member since: 05 Dec 2009)


The majority of people also think a government is a great way to organize society.

The majority CAN be wrong, you know.

Want to comment? Please login or register.

Latest stories