Sprint's committment to Apple might be less than expected

[pyroscott]

It seems the amount committed to Apple keeps falling. The latest estimate is that Sprint has to sell around 24 million iPhones to meet the $15.5 billion, four year deal with Apple revealed in their 10K filing. Considering Sprint sold 1.8 million phones in 4Q 2011, they would need to keep that pace for just under 3 and a half years to sell their 24 million iPhones.

 

"In September 2011, we entered into a four year commitment with Apple, Inc. to purchase a minimum number of smartphones, which on average, are expected to carry a higher subsidy per unit than other smartphones we sell. Our minimum commitment under this arrangement is approximately $15.5 billion; however, we expect our actual purchases will exceed this amount."

 

They also revealed that network vision will cost approximately $10 billion over 2 years in the following quote:

 

"Our accelerated timeline coupled with our capital needs to maintain and operate our existing infrastructure are expected to require approximately $10 billion in total capital expenditures over the two year period ending December 31, 2013."

[S4GRU]

Great link.

 

I'm happy to hear that Sprint still keeps referring to a 24 month Network Vision build out. I think the NV OEM's and their subcontractors will make it, as long as Sprint can keep their cash flow up enough to keep paying invoices. Sounds like if Sprint keeps saying things like this, they are confident that they will be able to keep funding NV and LTE deployment.

[MacinJosh]

I sure hope that they keep the 2 year timeline going as well. I'd like to see NV finished about the same time verizon is supposed to finish their LTE roll-out.

 

Sent from Joshs Evo Shift 4G using Forum Runner

[legion125]

Wasn't NV originally $5 Billion? That's whats confusing, One goes up, the other goes down and most the info is coming from analysts who's guesses are as good as mine.

[Fraydog]

LOL I just hope Sprint can keep track of all their piggy banks.