iPhone exceeds Sprint's expectations

The iPhone 4S is the first iPhone to land at Sprint and sales are better than expected. Sprint CEO Dan Hesse confirmed that early sales of the iPhone 4S have beaten internal estimates and the phone is bringing new customers to the struggling wireless carrier. Hesse wouldn't divulge actual sales numbers, but did confirm the iPhone 4S is the fastest-selling smartphone Sprint has carried.

This successful launch comes with a hefty price tag. Sprint has entered a four-year agreement with Apple to sell the iPhone and is paying the Cupertino company a hefty subsidy of US$200 per phone. Over the four-year period, the iPhone will cost Sprint an estimated $15 billion. Sprint hopes to compensate for this large upfront cost with a block of new subscribers who will stay for a longer period of time and subscribe to an expensive monthly voice and data service plan. Even with these new subscribers paying upwards of $60 per month, Sprint won't balance its iPhone budget until sometime in 2015.

[Via Reuters]