Sprint CEO Dan Hesse defends push for the iPhone

Sprint CEO Dan Hesse defends push for the iPhone
It has been widely reported that Sprint agreed to pay Apple $15 billion over the course of 4 years just to have the privilege of selling the iPhone on the network. Yesterday, it was speculated that the push for the iPhone combined with the increasing debacle that is Sprint's effort to build an LTE network could spell real trouble for the company. 

CEO Dan Hesse has already been on close watch since the Apple deal and then the failed MetroPCS deal, but he is defending the choice to go after the iPhone. Hesse said that iPhone sales have "exceeded expectations" and said that iPhone users are actually better for the network because they "have a lower level of churn and they actually use less data on average than a high-end 4G Android device." This means that iPhone users are actually more profitable than the average smartphone user. 

Hesse said that the real aim is to draw in new customers, because Apple asks for such high subsidies that new subscribers become far more important. Hesse goes on to use Sprint's unlimited data as a selling point, claiming it is a big reason why "4 out of 10" iPhone sales for the carrier are new subscribers, meaning it is stealing customers from the competition. 

But, given the widespread assumption that the next iPhone will have the same LTE-capable radio as the new iPad, and the fact that Sprint doesn't have a workable LTE network, we don't know if that trend can continue. 

Related phones

iPhone 4s
  • Display 3.5" 640 x 960 pixels
  • Camera 8 MP / 0.3 MP VGA front
  • Processor Apple A5, Dual-core, 800 MHz
  • Storage 64 GB




Posts: 2315; Member since: Jul 30, 2011

'iPhone users are actually better for the network because they "have a lower level of churn and they actually use less data on average than a high-end 4G Android device' Could it be because the iPhone does everything only whilst connected to Wi-Fi???

10. remixfa

Posts: 14605; Member since: Dec 19, 2008

yes sir.. you are correct sir! its amazing that even on LTE, the stupid ipad still isnt able to videochat unless its on WiFi. Personally , I dont think its going to make that big of a difference. first off, many iphone users think the "4" means 4g anyways, so they dont know the difference. also, there is no reason (though unlikely) that a wimaxx model cant be launched. sheeple would buy it even if it was still 2g. And for the budget conscious, the extra 40-50 bux a month saved is worth not having LTE


Posts: 2315; Member since: Jul 30, 2011

No Sir, you are even more correct. The first thing I did when I grabbed that New tAmpAd on Friday was launch FaceTime and, of course, I got the message "Please Turn on Wi-Fi?" Then, I tried the Browser; I could still only get the "Mobile" site of one of my trusty websites that offers a true "Go To Full Website" link. Finally, the only thing I could do was change the default ringtone and default notifications tone to "Bark". Woof-woof (iMean, iWoof-iWoof)!!

41. Lucas777

Posts: 2137; Member since: Jan 06, 2011

so u either bought an ipad, or were at the store the day of to see the ipad? sorry, but the hypocrisy is practically coming out of my computer and slapping me…

35. smallPENIS

Posts: 2; Member since: Mar 21, 2012

The fact still remains that Iproducts will outsell and outQUA any android products

2. theBankRobber

Posts: 682; Member since: Sep 22, 2011

Sprint is only going to maybe make the $15.5 billion back on the iPhone but no profits.

22. lsutigers

Posts: 832; Member since: Mar 08, 2009

And of course you know the exact details of the financials because you are privy to this information?? How so?? This deal was analyzed and re-analyzed, it is a LONG TERM investment for Sprint. They gave full disclosure, we expect to lose money on this deal before we see a return.

33. theBankRobber

Posts: 682; Member since: Sep 22, 2011

Haha yea JUST LIKE WITH WIMAX RIGHT???? Lets not forget Sprint has to pay more for the iPhone then Verizon and AT&T so I don't really see much profit.

34. smallPENIS

Posts: 2; Member since: Mar 21, 2012

I don't like your opinion so go F%^K yourself

36. theBankRobber

Posts: 682; Member since: Sep 22, 2011

Haha your name says it all

37. Contreramanjaro

Posts: 153; Member since: Dec 04, 2011

I don't think WiMax was ever a long term solution, I'm not going to do your research for you. The idea was to slow down customers leaving and to gain some new ones. The problem was there was no profit to begin with so Sprint is just trying to (IMO) level it off while they try to build their network. This is seen with the Network Vision stuff they are doing along with killing off Iden. Naturally I don't think WiMax went off well at all but making their towers so easy to switch to LTE and contracting Clearwire in the first place shows a lack of dedication to WiMax. LTE wasn't really ready when Sprint started to build its 4G network and it was bleeding customers and money badly. It needed a selling point so it started building 4G. Who knew that suddenly TMO and ATT were going to pull "4G" out of their asses too. This goes back to iPhone. To me, it looks like every move at this point by Sprint is just to keep and gain customers.

40. theBankRobber

Posts: 682; Member since: Sep 22, 2011

No please educate yourself , Sprint didn't have any good phones before the Evo. The Samsung Instinct was a huge pile of garbage. Had one myself before the Evo and what caught my eye about the Evo was surely not the 4g, it was the great specs. The touch pro 2 was a decent phone after the instinct. Sprint invested alot of time and money into Clear and WiMax trying to push it as the next 4g standard. They went the cheap way and it cost them money .

42. Lucas777

Posts: 2137; Member since: Jan 06, 2011

sprint needed wimax because it was the only option… they had a fat amount of spectrum that the gov was gonna reposes if they didnt do something with it… lte was far from ready so they had to deploy wimax, as it was a nice selling point and 3g wasnt needed… wimax was a very nice solution at the time because of all the government support for it and its seemingly uniformness… i think apple might make a wimax iphone so it will not be a huge issue…

45. Contreramanjaro

Posts: 153; Member since: Dec 04, 2011

Oh, I'm sorry, the awesome HTC Touch Diamond must have been some sort of mirage. The Instinct was decent at the time. Also had one. Also, I don't think anyone still thinks WiMax and Clear were good decisions but a couple years ago that wasn't so obvious. Come on man, you're going to need more than year old arguments to show me how wrong I am.

3. JeffdaBeat unregistered

When AT&T dropped unlimited, people freaked. But when Verizon did the same, folks seemed to start questioning whether they actually needed unlimited. It's funny how folks forget so quickly. At any rate, I don't think the unlimited plan will be enough to draw people. LTE maybe...but not just an unlimited 3G plan. I think all the iPhone does for Sprint is puts them in the running as the Verizon and AT&T. People will be more willing to consider Sprint, but it doesn't make the deal since...well...there are two other companies to consider.

25. -box-

Posts: 3991; Member since: Jan 04, 2012

Especially since Sprint has the slowest network of the "big 4"... no point having unlimited if you can't use it... and their structure penetration is awful and the coverage leaves much to be desired


Posts: 1461; Member since: Mar 09, 2010

Change is a coming...here in NYC I get 1078 kbps on 3G and from 5-13k kbps on 4G Wimax When LTE hits between June, and August people will feel different

38. Contreramanjaro

Posts: 153; Member since: Dec 04, 2011

I get 1.1 or so mbps during slow hours and 400 kbps during peak hour on 3G. I get a solid 2-4 Mbps on weak WiMax signal all the time. It's all riding on Network Vision.

31. dvancleave

Posts: 32; Member since: Jul 19, 2010

Exactly! Sprint has really good customer service. And their pricing structure is good too. But their coverage and data speeds finally weighed in and I dropped them. Too bad really. But one can only hold on to promises of "hope and change" that never transpire for so long. I clocked Sprint's speeds all around the Indianapolis, IN metro area. Most tests yielded 300-500 Kbps download using Samsung Epic 4G, HTC Evo 4G, and/or Sierra Wireless 4G Hotspot. Every now and then I would get up around the 700 Kbps mark. But this was more of an exception than a norm. And Sprint never delivered on the WiMax 4G coverage in Indy. Well, they did wheel in some towers for the Superbowl. But those things were out of here the next day along with our 4G. They tried to keep me onboard with the promise of building out an LTE network. But we all know how the Light Squared deal panned out. I wasn't about to take a gamble on more talks of hope and change to come. I jumped ship to AT&T because my company made the very same switch. And so far the coverage is good and so are the data speeds. Indianapolis has be blessed by AT&T with LTE coverage. And it is FAST! I have the Samsung Skyrocket and my young teenaged daughter got the iPhone 4S. Even it manages to pull 3-5 Mbps downloads on their HSPA+ network.

46. threeline

Posts: 323; Member since: Sep 11, 2011

Sprint's Network blows in Phoenix too!

49. TechnoTechyes

Posts: 71; Member since: Jan 24, 2011

I drove all over Mesa, Tempe, Scottsdale (all the way up to Desert Mountain) and was in the southern part of Phoenix... I never had an issue. What part of Phoenix drops calls? I don't know why someone would give a thumbs up... Stupid

47. Contreramanjaro

Posts: 153; Member since: Dec 04, 2011

There is no doubt that ATT is stronger now. WiMax is limited but there are a few towers around. It would have been all good if Clear didn't run out of cash. After the Super Bowl though, in Indy I do around 1.1 Mbps. The Network Vision thing seems to be working.

4. torr310

Posts: 1724; Member since: Oct 27, 2011

The CEO is an fanboy. LOL

5. torr310

Posts: 1724; Member since: Oct 27, 2011

The CEO is a fanboy. LOL

6. Juggernaut1973

Posts: 4; Member since: Mar 21, 2012

Dan, you are a complete MORON! iPhone customers are better and more profitable for Sprint? Who are you trying to kid? My wife and I have been loyal customers for over 10 years and we are both Premiere members who have spent a crapload money every year on our calling plans, accessories, and convincing family, friends, employees, and co workers to switch over to Sprint!! Where is your support for long time loyal customers like us?? We love Android and we hope that you get off the Apple Kool Aid and start taking care of your long term paying customers...


Posts: 2315; Member since: Jul 30, 2011

I guess when you think about it, it's a serious slap in the face to loyal long-term premiere Sprint customers. Now, I'm not telling you to go and cancel your contract (s) in retaliation but, if someone else makes that suggestion far be it for me to discourage it.

13. moofoodooloo

Posts: 137; Member since: Jan 04, 2011

Go ahead and cancel your contract, you'll just get bent over somewhere else. Either way you're going to get bent, one way or another. Choose who you want it from.


Posts: 2315; Member since: Jul 30, 2011

I truly hope you're not projecting because, if you are, you just "came out" in a big way.

19. drtech

Posts: 135; Member since: Mar 16, 2012

Juggernaut I'm sure you know more than Sprint's CEO

23. lsutigers

Posts: 832; Member since: Mar 08, 2009

@ Juggernaut1973 And exactly what else do you want Sprint to provide you, sir? You have an Android phone, right? They are releasing new high end Androids the rest of the year, right? They have the iPhone, Blackberries and WP, right So please, tell me, what else is it that you want from a phone company. To pay your mortgage? Obama might take care of that... Some people are whiners, want everything handed to them or are just too hard to please!!!

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