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iPhone: Narcotic for the carriers?


legion125
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Migrated from Original Forum. Originally Posted 27 January 2012

 

Here's a good analysis from CNET about the strain the iPhone is on the networks and the carriers pocketbook. Has a few good comments about carrier margins and includes some observations about Sprint. Sprints 4th Quarter earnings will be reported in less than two weeks. Since it has practically sold its soul to Apple and seeing how the iPhone has affected the Big Two, it will be interesting to see how much this will affect Sprints bottom line.

 

http://news.cnet.com/8301-1035_3-57366563-94/for-carriers-the-iphone-is-a-bittersweet-drug/?tag=epicStories

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Migrated from Original Forum. Originally Posted 27 January 2012

 

That is a good analogy, you GOTTA have it to keep your customer base happy and keep them on your network, but it erodes profits. Maybe it's because there is a new android phone out every week, but it doesn't seem like Android customers are nearly as upgrade obsessed as Apple customers.

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Migrated from Original Forum. Originally Posted 28 January 2012

 

I could make a cogent argument that the iPhone is one of the worst things (as contrarian as that might sound) to ever happen to the overall well being of the domestic wireless industry. It would likely make my worst five (in no particular order):

  • iPhone
  • VZW-Alltel merger
  • Cingular-AT&TWS merger
  • sunset of the spectrum cap
  • elimination of the Cellular 850 MHz cross interest rule

AJ

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Migrated from Original Forum. Originally Posted 28 January 2012

 

After you delete the T-Mo breakup fee and other costs from AT&T's earnings report you can see that they took a pretty big hit from the iPhone. Although AT&T is a lot larger than Sprint and can absorb a loss better, AT&T is overall in better financial shape than Sprint. I wonder what the numbers will be on 2/8 when Sprint reports earnings? In the article, it mainly mentions how giddy Hesse & crew are with the iPhone.

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