Wells Fargo analyst says Sprint's unique connections allow it to profit from free iPhone 7 promotion4
But one analyst thinks that there isn't any red ink at all for Sprint. Jennifer Fritzsche, a Wells Fargo Senior Analyst, believes that Sprint can actually turn a profit on the promotion. She reaches that conclusion by analyzing several factors. First of all, the largest used handset distributor on earth is Brightstar, owned by Sprint's majority stockholder SoftBank. And Brightstar was founded by none other than Marcelo Claure, Sprint's CEO. According to the analyst, these connections allow Sprint to recover as much as $200 for each Apple iPhone 6s and $400 for each Apple iPhone 6s Plus that is traded in toward an iPhone 7.
Sprint has been an industry leader in allowing customers to lease their phones. While it appears that it will no longer allow this for Android flavored handsets, it plans to continue offering leases on the iPhone. After the 18 month lease is done on a phone, Sprint can collect an additional $200 after the phone is either returned by the customer, or purchased by him. According to Wells Fargo's Fritzsche, that extra $200, which no other carrier can collect, can be the difference between red and black ink for Sprint
Thanks to its connection with Brightstar, and Marcelo Claure's expertise with this part of the industry, Sprint does have an advantage over the other U.S. carriers that might help it cash in with a strong bottom line performance for the third and fourth calendar quarters this year.