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Sprint and the iPhone


Feech

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Although I am new around here I do see that folks like to play the hindsight is 20/20 game. Since I am slammed at work and looking for anything other than work to do I have a new one.

 

Does anyone think that Sprint would have been better off passing on the iPhone for another year or two and possibly positioning themselves for a better deal with Apple? Maybe going all in with Android handsets. Sprint started selling the iPhone in late 2011 and Google released Android 4.0 in that same time frame I believe.

 

My thinking is they should of held out possibly because Android 4.0 was that much of a leap from previous versions that it could compete directly with the iPhone..The report is that Sprint paid tons of money for the rights to sell it, but if you look at Verizons financials they actualy sold more Droids than iPhones

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I don't think so. Carrying the iPhone helped increase upgrades which helped lower churn and also bring in more customers and raise arpu. It is a significant investment but a necessary one.

 

Sent from my EVO using Tapatalk 2

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Sprint had to get it. Especially, once Verizon got it. I think they saw a huge exodus of customers all leaving because they didn't have it. Sprint couldn't afford to lose those customers.

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Although I am new around here I do see that folks like to play the hindsight is 20/20 game. Since I am slammed at work and looking for anything other than work to do I have a new one.

 

Does anyone think that Sprint would have been better off passing on the iPhone for another year or two and possibly positioning themselves for a better deal with Apple? Maybe going all in with Android handsets. Sprint started selling the iPhone in late 2011 and Google released Android 4.0 in that same time frame I believe.

 

My thinking is they should of held out possibly because Android 4.0 was that much of a leap from previous versions that it could compete directly with the iPhone..The report is that Sprint paid tons of money for the rights to sell it, but if you look at Verizons financials they actualy sold more Droids than iPhones

 

http://us.rd.yahoo.com/finance/external/allthingsd/SIG=12h5ub20t/*http://allthingsd.com/20120726/sprint-ceo-on-iphone-we-made-the-right-decision/?reflink=ATD_yahoo_ticker

 

I think that Sprint made the right decision by carrying the iPhone now.

 

Btw, is anyone keeping a running tally on how many iPhones Sprint has sold so far? It'd be nice to see where they stack up against in terms of the contract obligation they made to Apple.

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http://us.rd.yahoo.c...TD_yahoo_ticker

 

I think that Sprint made the right decision by carrying the iPhone now.

 

Btw, is anyone keeping a running tally on how many iPhones Sprint has sold so far? It'd be nice to see where they stack up against in terms of the contract obligation they made to Apple.

 

Ask and ye shall receive. Thankfully, someone at seekingalpha did the legwork. Here's the writeup. Overall the piece has a wait and see take to Sprint, but it gives us the data you're looking for.

 

http://seekingalpha....te?source=yahoo

 

Here's the data:

 

Q4 '11 1.8 million

q1 '12 <1.5 million

q2 '12 >1.5 million

 

Total ~ 4.8 million.

 

Also, from the earnings call Hesse said they are ahead of their sales obligations under the apple contract. However, not further details were given.

 

Dan Hesse:

To date, although still young in its product life cycle, we are observing materially lower early like churn rates for iPhone customers compared to other smartphone customers. The operational performance so far continues to support our decision to carry the iPhone. Considering postpaid devices only, we are ahead of the pace required to meet our contracted commitments to Apple.

 

Transcript http://seekingalpha....ipt?part=single

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Of those numbers how many are new customers though? Keep your customers is fantastic but are you enticing the competition with your offerings

 

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Of those numbers how many are new customers though? Keep your customers is fantastic but are you enticing the competition with your offerings

 

Sent from my EVO using Tapatalk 2

 

You can read through the transcript and find a reference to this. For the 2nd qtr it was 40%. That is 40% of iphone sales were to new Sprint customers. I believe that is about in line with the previous quarters.

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So maybe about 200,000 customers net new maybe? I still wonder bottom line if it will be worth it long term. I'm not sure if I buy that existing Sprint customers were going to walk out if Sprint didn't have the iPhone though. There is a lot of reasons to stay with Sprint. Price and unlimited data being 2 of the most important. Customers could have bolted from Sprint long ago for AT&T if the iPhone was what they wanted. I know some did based on the numbers AT&T put up, but if they didn't have the iPhone then the assumption would be that they would have added just 200,000 plus customers in the quarter or could I assume customers were coming to Sprint anyway and the iPhone was available so they chose that because it was there.

 

I over think things a bit and without hard numbers we would never know but it's interesting to me anyway.

 

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The iPhone was a big thing for sprint to add/keep customers. Look at t mobile. They are bleeding customers like crazy. Not just because they don't have the iphone, but it is partially responsible. As a major carrier, to not carry the largest selling model of phone is not good for business. The subsidy difference is blown way out of proportion. Its like $50 over 20 months...

 

From JBtoro on Forum Runner

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So maybe about 200,000 customers net new maybe? I still wonder bottom line if it will be worth it long term. I'm not sure if I buy that existing Sprint customers were going to walk out if Sprint didn't have the iPhone though. There is a lot of reasons to stay with Sprint. Price and unlimited data being 2 of the most important. Customers could have bolted from Sprint long ago for AT&T if the iPhone was what they wanted. I know some did based on the numbers AT&T put up, but if they didn't have the iPhone then the assumption would be that they would have added just 200,000 plus customers in the quarter or could I assume customers were coming to Sprint anyway and the iPhone was available so they chose that because it was there.

 

I over think things a bit and without hard numbers we would never know but it's interesting to me anyway.

 

Sent from my EVO using Tapatalk 2

 

There are more things to consider than just price or unlimited data, if there wasn't then sprint would be number one but they aren't. A lot of people didn't jump ship because their hatred for at&t was more than their love for the iphone but once verizon got it then it was a different story. Also, what was sprints saving grace a few years ago was the release of the og evo. The iphone is a must for sprint to stay competitive. Love it or hate it, its a must have. Sprint would rather be in a position of increasing subscribers and losing money than to be losing subscribers and losing money.

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The iPhone was a big thing for sprint to add/keep customers. Look at t mobile. They are bleeding customers like crazy. Not just because they don't have the iphone, but it is partially responsible. As a major carrier, to not carry the largest selling model of phone is not good for business. The subsidy difference is blown way out of proportion. Its like $50 over 20 months...

 

From JBtoro on Forum Runner

 

T-Mobile and us cellular doesn't have the fruit phone

 

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T-Mobile and us cellular doesn't have the fruit phone

 

Sent from my Nexus S 4G using Tapatalk 2

 

And nobody considers those carriers to be in the top tier of wireless carriers. US Cellular is regional, and T-Mobile has always been a laughingstock. Not to mention T-Mobile is bleeding customers like crazy. http://www.nypost.com/p/news/business/iphone_less_mobile_losing_flood_JbCg9zJQACpSHoN277PkXO

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In my own personal case I was waiting for Sprint to get the iPhone so I could get in on their unlimited data. I would not have settled for an Android device. Sprint getting the iPhone is a big reason why I am currently a subscriber to their service.

 

This is very true. I have two friends on the original iPhone plan on ATT. They both have an iPhone 4 now and that is a nice position to be in. One of these friends regularly uses over 8GB a month and would be in a bad position with a tiered plan. The other, while he rarely uses more than 2GB a month, says that he would hate having to worry about how much data he is using. Worrying about data kills the simplicity vibe of something like an iPhone and I think that is where Sprint is successful. Not much in the way of surprise charges.

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In my own personal case I was waiting for Sprint to get the iPhone so I could get in on their unlimited data. I would not have settled for an Android device. Sprint getting the iPhone is a big reason why I am currently a subscriber to their service.

 

Well I most definitely wasn't settling for an iPhone :) but welcome to sprint none the less

 

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