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iPhone effect not strong enough for Sprint in Q4 2011: loss deepens, subscriber growth fails expectations

Posted: , posted by Victor H.

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iPhone effect not strong enough for Sprint in Q4 2011: loss deepens, subscriber growth fails expectations
After Sprint reported a controversial third quarter in anticipation of the iPhone, in the last quarter of 2011 the third-largest carrier finally felt the iPhone effect as users arrived on the carrier, but the number wasn’t as much as analysts projected and on the flipside of things, losses widened as the pricey deal with Apple could be felt.

Sprint added 161,000 total net subscribers in the Holiday quarter, but still failed to match analysts’ projections about 272,000 added subscribers. 

Sprint sold 1.8 million iPhones in the last trimester of 2011, and 40% of those were new subscribers arriving on the Now Network.

At the same time, the carrier reported a total loss of $1.3 billion, wider than last year’s $929 million. The company’s revenue stood at $8.72 billion.

Interestingly, the company sees its future very dependant on 4G LTE adoption, and expects to start growing as the first LTE markets light up and customers hop on the fast new network. Sprint said its home city of Kansas along with Baltimore will be among the first to get an LTE network by mid-2012.

source: Sprint

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posted on 08 Feb 2012, 06:49 5

1. kshell1 (Posts: 1143; Member since: 05 Oct 2011)

i used to be a sprint fan but sprint is turning into a massive fail as of late

posted on 08 Feb 2012, 06:55 3

2. tigermcm (Posts: 860; Member since: 02 Sep 2009)

take that stupid Sprint how about pleasing those already on your network and stop being so far up Apple's you know what for a friggin phone that slowed our network down!!!!! Cry for some WP7s how about that?

posted on 08 Feb 2012, 11:14 2

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

A lot of the masses don't want WP7 they want Apple (don't ask me why)

Personally would take a WP7 over iphone anyday.

The masses threatened to leave Sprint because of no iphone, they got the iphone and now they are screwed. GL Sprint

posted on 08 Feb 2012, 07:13 4

3. QWIKSTRIKE (Posts: 1361; Member since: 09 Mar 2010)

Paying all that money for iPhone was a stupid thing to do. I knew it would fail, and betting on an over saturated phone market with an out dated infrastructure speed was doomed to fail. Their losses come from the up front money guaranteed to Apple. Apple was the winner we were the loser. They lost because of the losing of the Premier customer awards to get s**tphone. The upfront cost being paid to Apple will hurt their bottom line for many years.
I feel that Apple may grow in newer markets outside of the U.S., but everyone that wanted an iPhone in America has one by going to AT&T, Or Verizon. Sprint is too late to the game. Anyone that comes to Sprint will only come for lower rates. They should have kept the Premier plan for all phones except Apple renews! I bet losing the Premier plan caused many to go to Verizon! Also Sprint has been improving infrastructure at the consumers loss. The tower upgrades cause service interruptions, and dropped calls with no true acknowledgement from Sprint that it is happening to avoid crediting users for lack of service.....a real class act!

posted on 08 Feb 2012, 08:34 3

8. wumberpeb (Posts: 453; Member since: 14 Mar 2011)

Sounds like someone's bitter...

Anyone who was about to get the iPhone had to make network upgrades, and they all had various outages and scattered problems. You're clearly a Sprint customer who feels slighted, but what would you have them do? Snub the iPhone because customers would lose out on yearly upgrades? Most of the concessions they made put them on the same level a the other carriers, such as the upgrade fee and ETF...

Monthly rates stay the same and everyone keeps unlimited data, I'd say they're doing a decent job

posted on 08 Feb 2012, 09:04 1

10. Contreramanjaro (Posts: 153; Member since: 04 Dec 2011)

My 3G signal went to like 1-2 bars for about a day then went back to it's normal full-(full-1) After going back up I had better speeds. It was never really a hassle. I'm happy as can be on Sprint's service. Plays Zune Pass without a hitch so that's enough speed for me.

posted on 08 Feb 2012, 10:35 1

14. QWIKSTRIKE (Posts: 1361; Member since: 09 Mar 2010)

Slighted by what...get a grip I call it the way I have seen it I have been with Sprint Since the 1st month they opened the doors buddy. I had lots of dropped calls and service interruptions here in NY last year.

Sprint tried to deny issues and I almost dropped them because of the lies when they were upgrading their system in NY. They could have told me the truth rather than lie for 6 months about poor service.

I feel they over paid for a phone that will be in decline in the future for the upfront price they are paying for the rights to sell it that is my opinion. If the Droid Max ups its resolution it probably will be the best phone out period. If I felt slighted by any thing I wouldn't be here. I could also buy an iPhone but it is not my cup of tea. Is the iPhone revolutionary yes.....when it was 1st introduced now it just comes down to preference. I say they paid way too much for it and their profits show it. They also have to issue more stock to offset the iPhone loss. This was not a good deal, and I stand by it.

I have played with a WP7, and believe that it will eventually be a future phone of choice with a true competitive ecosystem like Apple with true multitasking and speed.

posted on 08 Feb 2012, 07:50

4. bigdawg23 (Posts: 462; Member since: 25 May 2011)

This data clearly shows customers don't care about unlimited data. If customers were that up in arms over unlimited they would have moved to Sprint.

posted on 08 Feb 2012, 07:52

5. kshell1 (Posts: 1143; Member since: 05 Oct 2011)

i may get throttled on tmobile after 5gb of data now but their edge speeds are like verizon 3g

posted on 08 Feb 2012, 10:46 1

15. QWIKSTRIKE (Posts: 1361; Member since: 09 Mar 2010)

I think people care about unlimited data but other things also come into play like LTE, coverage, and phone line up choices.

posted on 08 Feb 2012, 08:19

6. BuckeyeCadet86 (Posts: 78; Member since: 26 Oct 2011)

You're kidding right? Verizon 3G isn't what anyone will call fast but EDGE on T-Mobile is less than 100 kb/s download. Verizon 3G is about 1-1.5 mb/s. Don't throw inaccurate statements around like that, Verizon 3G is 10X faster than EDGE in most places. My friend was throttled on T-Mobile and he got an average of 24 kb/s download, then he left.

posted on 08 Feb 2012, 08:26 1

7. kshell1 (Posts: 1143; Member since: 05 Oct 2011)

well verizons 3g sucks ass in my area so its better in my area

posted on 08 Feb 2012, 08:37

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

And who called this outcome?

That's right. I called it.

posted on 08 Feb 2012, 09:43 1

11. Bigbluetundra (Posts: 45; Member since: 03 Nov 2011)

Wait, Kansas is a city?

posted on 08 Feb 2012, 10:10 2

12. jamrockjones (Posts: 345; Member since: 26 Oct 2011)

Dang iPhone! Should have never done it, Apple is way to greedy to work with.

posted on 08 Feb 2012, 10:23

13. Bluesky02 (Posts: 1439; Member since: 05 Dec 2011)

So far its only T-Mobile and At&t who is willing to give Nokia/WP7 a chance. I wish Sprint and Verizon would do same, as i never hear anything related to WP from them aside from WP need LTE.

posted on 08 Feb 2012, 15:45

17. thephoneguy92 (Posts: 191; Member since: 29 Dec 2011)

Verizon had put out a statement regarding WP7 a month or two back. It was something along the lines of them not adopting them in the past because they had no LTE capabilities, but now that most WP7 phones are becoming LTE, Verizon says that they will be getting a good amount into their lineup. Now, whether or not that will happen, or when, remains to be seen.

posted on 08 Feb 2012, 19:29 1

18. lubba (Posts: 1313; Member since: 17 Jan 2011)

People nowadays are like brainless zombies or more like the "Borg". They want to be part of a collective, controlled by one entity. They can't think for themselves. Someone has to do it for them. Because everyone have an iPhone, they have to have an iPhone. But there are few of those out there that can think for themselves. These are the kind of people that sees a world that does not revolve around dems and repubs, or iPhone and Android. They see a world of choice and opportunities beyond the collective. That's why they chose WP because its different. It presents something new that works. It doesn't conform to the same elements and similarities found in the iPhone, Android, Bada, Symbian, Meego, maimo, etc.. The world doesn't have to be a "Borg" or dems and repubs, or iPhone and Android. It can be WP.

posted on 09 Feb 2012, 00:00

19. Bluesky02 (Posts: 1439; Member since: 05 Dec 2011)

Very nice post..! it can be used as a marketing campaign

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