Sprint won’t make profit out of the iPhone until 2015
posted by Victor H. / May 16, 2012, 9:37 AM
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.
“We’re very happy with it,” Hesse said at the company’s annual shareholders meeting. “Carrying the iPhone will be quite profitable.”And about that iPhone?
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.
Posts: 7305; Member since: Dec 05, 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 May 16, 2012, 10:05 AM 8
Posts: 299; Member since: Apr 21, 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 May 16, 2012, 10:11 AM 3
Posts: 241; Member since: Oct 20, 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 May 16, 2012, 6:51 PM 0
Posts: 241; Member since: Oct 20, 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 May 16, 2012, 8:14 PM 0
Posts: 571; Member since: Feb 26, 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 May 16, 2012, 10:34 AM 1
Posts: 11; Member since: May 14, 2010
well sprint is at its largest subcriber base ever and continuing to climb...
posted on May 16, 2012, 11:10 AM 3
Posts: 1835; Member since: Nov 22, 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 May 16, 2012, 11:39 AM 1
Posts: 1149; Member since: Feb 11, 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 May 16, 2012, 11:49 AM 0
Posts: 5506; Member since: Oct 08, 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 May 16, 2012, 12:15 PM 1
Posts: 2146; Member since: Oct 18, 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 May 16, 2012, 12:47 PM 3
Posts: 14605; Member since: Dec 19, 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 May 16, 2012, 1:42 PM 2
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