Virgin Mobile To Sell iPhone July 1

[4GHoward]

It looks like Virgin Mobile will be selling the iPhone starting July 1.

 

Source: http://www.marketwatch.com/story/sprints-virgin-mobile-usa-to-offer-iphone-2012-06-05

[ChadBroChillz]

Very smart move by Sprint. I could see this being very a successful move by them. I do think they need to have a BYOCDMA, even if it is just other sprint phones.

[S4GRU]

Very smart move by Sprint. I could see this being very a successful move by them. I do think they need to have a BYOCDMA, even if it is just other sprint phones.

 

Sprint sure has a lot of iPhones it needs to sell, though.

 

Robert

[darnell89]

Sprint sure has a lot of iPhones it needs to sell, though.

 

Robert

 

Yeah, of course. Sprint thought they would sell more iPhone than they expected.....Cause when Sprint didn't have the iPhone everyone on Sprint basically wanted one. It was a very high demand thing, til everyone started switching carriers. VM should do really good with the iPhone. Apple is starting to slip a little, so they are starting to release it more to other carriers around the world. You see ever since Steve Jobs passed, more ports are opening for iPhones to come into Post-paid & Pre-Paid carriers. VM (Canada) had the iPhone for a while now though.

[MacinJosh]

 

Yeah' date=' of course. Sprint thought they would sell more iPhone than they expected.....Cause when Sprint didn't have the iPhone everyone on Sprint basically wanted one. It was a very high demand thing, til everyone started switching carriers. VM should do really good with the iPhone. Apple is starting to slip a little, so they are starting to release it more to other carriers around the world. You see ever since Steve Jobs passed, more ports are opening for iPhones to come into Post-paid & Pre-Paid carriers. VM (Canada) had the iPhone for a while now though.[/quote']

 

VM Canada is both post-paid and prepaid.

 

Also, hopefully Boost will get the iPhone too now that Virgin is getting.

 

Sent from my LG Viper 4G LTE using Forum Runner

[darnell89]

VM Canada is both post-paid and prepaid.

 

Also, hopefully Boost will get the iPhone too now that Virgin is getting.

 

Sent from my LG Viper 4G LTE using Forum Runner

 

Yeah, boost should get it. I'm curious if they would put the Shrinkage plan on that phone, or not.....

[marioc21]

Yeah, of course. Sprint thought they would sell more iPhone than they expected.....Cause when Sprint didn't have the iPhone everyone on Sprint basically wanted one. It was a very high demand thing, til everyone started switching carriers. VM should do really good with the iPhone. Apple is starting to slip a little, so they are starting to release it more to other carriers around the world. You see ever since Steve Jobs passed, more ports are opening for iPhones to come into Post-paid & Pre-Paid carriers. VM (Canada) had the iPhone for a while now though.

 

I don't think the sell-through on the iphone has been lower than expected. Unless Sprint is out right lying on its earnings calls, which probably isn't a good thing for them to do, then they've matched or exceeded their sales estimates for the iphone. The iphone has been their number one selling phone since they released it on sprint. I'd be curious to see if that's still true with the EVO LTE now out.

 

And of course once the next iphone is released and it has LTE onboard, then phones will fly off the shelf once again for a quarter or two. I"m sure Apple and Sprint will show record sales of iphones in the quarter following the release.

[irev210]

Sprint sure has a lot of iPhones it needs to sell, though.

 

Robert

 

It's actually pretty misunderstood.

 

Sprint only needs about 20-25% of total handsets sold (including prepaid) to be an iphone. Not including prepaid, we are looking at just over 35% of handsets sold to be the iPhone. Sprint is going to hit between 30-40% of prepaid handsets sold being iPhone in 2012.

 

Either way, unless apple really screws up the 2014 iPhone launch, Sprint will likely sell more iPhones than contractually required.

 

Don't forget that the trickle-down effect with iPhone products. I am wondering how low the iPhone 4 will go (free on-contract, 199 prepaid?) once the iPhone 5 comes out.

[S4GRU]

It's actually pretty misunderstood.

 

Sprint only needs about 20-25% of total handsets sold (including prepaid) to be an iphone. Not including prepaid, we are looking at just over 35% of handsets sold to be the iPhone. Sprint is going to hit between 30-40% of prepaid handsets sold being iPhone in 2012.

 

Either way, unless apple really screws up the 2014 iPhone launch, Sprint will likely sell more iPhones than contractually required.

 

Don't forget that the trickle-down effect with iPhone products. I am wondering how low the iPhone 4 will go (free on-contract, 199 prepaid?) once the iPhone 5 comes out.

 

I don't mean to make it sound insurmountable or anything like that. I am just making the point that Sprint wouldn't want people to bring their iPhones and lose an opportunity to sell one...because until they meet the terms of the contract, they are going to try to encourage people to keep buying them at every opportunity.

 

Robert

[irev210]

I don't mean to make it sound insurmountable or anything like that. I am just making the point that Sprint wouldn't want people to bring their iPhones and lose an opportunity to sell one...because until they meet the terms of the contract, they are going to try to encourage people to keep buying them at every opportunity.

 

Robert

 

Well, they sell too many and it costs them a lot of money up front. I am guessing they are pretty comfortable with a ~30-40% mix of iPhone subs on their network. If they had a 80% sell-through on iPhones, it would create some financial headaches for the bean counters.

 

The whole thing is very interesting.

[S4GRU]

Well, they sell too many and it costs them a lot of money up front. I am guessing they are pretty comfortable with a ~30-40% mix of iPhone subs on their network. If they had a 80% sell-through on iPhones, it would create some financial headaches for the bean counters.

 

The whole thing is very interesting.

 

Do you think they are still subsidizing part of the prepaid iPhones? If not, then it wouldn't matter how many they sell. Won't hurt them at all. However, they may possibly be subsidizing some part of the prepaid iPhones. I don't know.

 

Robert

[tybo31316]

Do you think they are still subsidizing part of the prepaid iPhones? If not, then it wouldn't matter how many they sell. Won't hurt them at all. However, they may possibly be subsidizing some of part the prepaid iPhones. I don't know.

 

Robert

 

I believe they are subsidizing the prepaid iPhones because with sprint at full price the iPhone runs 500+. If sprint isn't subsidizing the phones for prepaid that would mean that sprint would make like $20 a phone for the 16GB model at $399 price point because Apple makes $380 per iPhone sold.

[9erHater]

There was no mention of pricing in the article, but it makes no sense for Sprint to subsidize the iPhone and allow it to be used on the $35/month plan. It would be hugely popular, but not much of a money maker. Sprint doesn't have to undercut Leap which is putting a small subsidy on the phone and servicing it with a $55/month plan.

[tybo31316]

me personally I don't think that sprint should offer the iPhone on prepaid. Sprint should only keep the for postpaid only where they are most profitable and can keep a locked in source of revenue for two years.

[Guest 503ducati]

me personally I don't think that sprint should offer the iPhone on prepaid. Sprint should only keep the for postpaid only where they are most profitable and can keep a locked in source of revenue for two years.

I'll bet the LTE iPhone will remain only a postpaid offering.

[tybo31316]

I'll bet the LTE iPhone will remain only a postpaid offering.

 

Well now that I think about it. It does make sense to sell the 4 and 4s on prepaid but only after the 5 is released. especially with cricket and other regional/prepaid carriers offering the phone soon.

[irev210]

Do you think they are still subsidizing part of the prepaid iPhones? If not, then it wouldn't matter how many they sell. Won't hurt them at all. However, they may possibly be subsidizing some part of the prepaid iPhones. I don't know.

 

Robert

 

Well, I am going to guess the 399/499 price point (to match leap).

 

So we could say that there is a explicit subsidy (like postpaid selling for less than what Sprint buys from apple) or an implicit subsidy (sprint is giving up profit that they would make selling, say, a HTC phone to sell an iPhone).

 

I am guessing that Sprint is looking at this as an implicit subsidy. Sprint is selling the iPhone for right around cost and taking a hit on the sale of the device in hopes of having a customer that is more loyal, less likely to churn, requires less support/customer service, and uses less data.

 

There are other devices that they are probably profitable selling but the customer lifetime value is lower and you can't attract new customers because you offer the same devices as your competitor.

 

So, in a sense, I think it's similar to the postpaid story. It hurts them up front but in the long run it helps lower churn, increases customer lifetime value, etc etc etc.

 

I personally think we are going to see windows phone start to really shine. I bet it is going to come near the oh-so-important customer satisfaction metrics that iphone is known for but at half the price. When that happens, carriers are going to be oh-so-quick to get behind that.

[darnell89]

I don't think the sell-through on the iphone has been lower than expected. Unless Sprint is out right lying on its earnings calls, which probably isn't a good thing for them to do, then they've matched or exceeded their sales estimates for the iphone. The iphone has been their number one selling phone since they released it on sprint. I'd be curious to see if that's still true with the EVO LTE now out.

 

And of course once the next iphone is released and it has LTE onboard, then phones will fly off the shelf once again for a quarter or two. I"m sure Apple and Sprint will show record sales of iphones in the quarter following the release.

 

True, but you also gotta remember, who was the most people, who brought the iPhone on Sprint.....New Customers, made the most impact on the phone when it came out. Less people who renewed their contact percent was less buying the iPhone. The EVO should sell pretty well. A lot of people still don't like Apple as much as Android. The iPhone LTE should do much better, once Sprint gets their network working correctly a lot of people should stay, and they shouldn't lose as many people.

[JeffDTD]

I'll bet the LTE iPhone will remain only a postpaid offering.

 

Yes of course.

 

Its not going to burn anyones britches to see a 4 or a 4s on virgin mobile any worse that it burns us to see them carrying wimax phones now......once the iphone5 arrives, the i-nation will scoff at the old models. This is no different than att hocking the 3gs fo 49 or free. There will always be low end customers wanting a cheap option....I know 3 virgin users who, despite complaining about lack of coverage, picked up new virgin smartphones in the last 6 months. Sell it sell it sell it Sprint! Give em what dey want!

[ericdabbs]

I am totally fine with Virgin and Boost mobile selling prepaid iphone. If people are willing to chuck out $500 bucks to get the latest iPhone on prepaid, I am all for it. Sprint has to sell iPhones worth 15 billion to hold up their end of the deal so whatever they need to do to achieve it is fine with me.

[marioc21]

I am totally fine with Virgin and Boost mobile selling prepaid iphone. If people are willing to chuck out $500 bucks to get the latest iPhone on prepaid, I am all for it. Sprint has to sell iPhones worth 15 billion to hold up their end of the deal so whatever they need to do to achieve it is fine with me.

 

Technically, Sprint's end of the deal is paying at least $15 billion dollars to Apple. Apple doesn't care how many phones Sprint actually sells as long as it gets paid. Sprint's investors on the other hand....

[marioc21]

Here's the official word with dates and pricing.

 

http://s4gru.com/index.php?/topic/1136-virgin-mobile-usa-announces-iphone-available-on-june-29/

[irev210]

Well, I am going to guess the 399/499 price point (to match leap).

 

So we could say that there is a explicit subsidy (like postpaid selling for less than what Sprint buys from apple) or an implicit subsidy (sprint is giving up profit that they would make selling, say, a HTC phone to sell an iPhone).

 

I am guessing that Sprint is looking at this as an implicit subsidy. Sprint is selling the iPhone for right around cost and taking a hit on the sale of the device in hopes of having a customer that is more loyal, less likely to churn, requires less support/customer service, and uses less data.

 

There are other devices that they are probably profitable selling but the customer lifetime value is lower and you can't attract new customers because you offer the same devices as your competitor.

 

So, in a sense, I think it's similar to the postpaid story. It hurts them up front but in the long run it helps lower churn, increases customer lifetime value, etc etc etc.

 

I personally think we are going to see windows phone start to really shine. I bet it is going to come near the oh-so-important customer satisfaction metrics that iphone is known for but at half the price. When that happens, carriers are going to be oh-so-quick to get behind that.

 

Sort of surprised that they went with the 550/650 price point. Not sure how many prepaid iPhones they will sell.

 

At any rate, sprint stated that it's not expected to have any material impact on 2012 earnings.

 

At least it's prepaid.

[marioc21]

Sort of surprised that they went with the 550/650 price point. Not sure how many prepaid iPhones they will sell.

 

At any rate, sprint stated that it's not expected to have any material impact on 2012 earnings.

 

At least it's prepaid.

 

I imagine the reason is that they don't want customers moving from Sprint to Virgin. That would hurt their revenues and especially the ARPU numbers. $649 is a lot of money to pay for a phone.

[Fraydog]

Having the iPhone for Virgin is more about customer retention than bringing new customers in, though I can understand why price conscious consumers would want to move from Sprint to Virgin, considering that Virgin is basically Sprint's branding for prepaid along with Boost.