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]
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The iPhone 4S is the first iPhone to land at Sprint and sales are better than expected. Sprint CEO Dan Hesse confirmed that early...
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Can't wait to get mine!
October 28 2011 at 12:35 PM Report abuse Permalink rate up rate down ReplyWell, Sprint better fix their nationwide SLOOOOW iPhone data speed issue. Check the forum boards and you will find people complaining about Sprint's ridiculous slow data speeds. I for one switched from AT&T to Sprint and my iPhone 4s data speed is on average .05Mbps. I have put in numerous calls to Sprint and all I get is "We are aware of the problem and blah blah blah...."
If Sprint hopes to compete with Verizon or AT&T, they at least need to offer comparable data speeds.
"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". That statement is just not true. A $200 subsidy means that the 16GB iPhone 4S is $400 off-contract, the 32GB - $500, and the 64GB - $600.
October 27 2011 at 5:08 PM Report abuse Permalink +2 rate up rate down Reply> "A $200 subsidy means that the 16GB iPhone 4S is $400 off-contract... just not true"
You don't know what Sprint pays for the iPhone--I assure you Sprint does not pay the same price per unit as you pay by walking into the Apple Store and buying it unlocked. Nor does it necessarily need to equal the price Sprint chooses to charge their customer for buying the phone out of contract. So perhaps they do pay the prices you quoted. Keep in mind, they are buying in bulk. $15 Billion will get you a little better deal than you can get buying one or two.
Yeah, no. Sprint pays the same for the iPhone as AT&T and Verizon do. Apple does not sell iPhones on bulk pricing. Even colleges and educational institutions dont get that kind of a discount. And for the record, Sprint signed a 4-year $20 billion deal. http://online.wsj.com/article/SB10001424052970203405504576603053795839250.html.
October 27 2011 at 8:23 PM Report abuse Permalink +1 rate up rate downToo bad Sprint has no coverage where I live. :/
October 27 2011 at 3:46 PM Report abuse Permalink rate up rate down ReplyYea i agree, i used to have a Sprint Overdrive 3G/4G modem. Only got 3G and it was always slow,like almost 56k slow. With the increase of subscribers and most people only usually getting 3G their network must be getting really slow now. Sprint should have invested their money into thier network. If you have a great phone and a crappy network,your basically gonna then have a crappy phone as well.
October 27 2011 at 3:14 PM Report abuse Permalink rate up rate down Replyi'd upgrade to Sprint if it were as fast as At&t.
October 27 2011 at 1:53 PM Report abuse Permalink +4 rate up rate down ReplyAgreed. It's the difference of 1.4mbps versus 7.2mbps. I just can't make that much of a jump down in speed. Besides, ATT coverage in my area is actually not bad. When I travel, that's when I see why everyone else hates them.
October 27 2011 at 4:12 PM Report abuse Permalink +1 rate up rate down ReplyGive them a year. They'll have turned the lights on some of their 2012 LTE build-out right around the time iPhone 5 is announced.
The slow 3G on Sprint is a symptom of the technology used (EVDO RevA) and can't compete with the 3G AT&T employs. I moved from AT&T to Sprint because my bill practically cut in half, and the device is significantly faster. the extra 3 seconds' load time for content is palatable when doing everything smoothly, vs paying through the nose to the Death Star and still waiting for my phone to catch up.
I say it was more or less worth it. With two-year contracts, people will be up to renew again in about 2014 and then of course new iPhones will be out every year - further locking people in.
October 27 2011 at 1:45 PM Report abuse Permalink rate up rate down ReplyToo bad you're still stuck with Sprint. Why won't it die already?
October 27 2011 at 1:34 PM Report abuse Permalink -2 rate up rate down ReplyMichael, are you on drugs? You think you'd be better off with LESS competition in the market? Yeah, that'd be real swell. Let AT&T buy T-Mobile and hope Sprint dies. Then Verizon and AT&T can laugh all the way to the bank.
I'm not saying I expect you to choose Sprint if it's not best for your needs (coverage, speeds, phones) but rooting for them to die is retarded. Tens of thousands of jobs would be lost and an insanely greedy duopoly would be entrenched even further.
About 6 months ago I was at a Sprint store and the employees just trashed talked my iPhone 4 (right to my face) as they compared it to their phone selections. One Sprint employee even told me my iPhone 4 was a "flawed" product with a small screen that had reception problems because of a botched antenna design. Why corporate bosses and store managers allowed this nonsense to go on amazes me. It's not smart marketing to alienate a customer in the short-term to only 6 months later send them an email announcing the availability of the same basic product they crapped on only 6 months before. No surprise that because of this I did not pick Sprint as my 4s carrier.
October 27 2011 at 1:26 PM Report abuse Permalink +1 rate up rate down ReplyI spoke with no less than a dozen Sprint reps in the past two weeks, as a consequence of inheriting someone else's Sprint contract before buying the iPhone. The unanimous reply was that this new phone is like nothing they've ever worked with, before. The demand they're facing (and the wrath we often-all-too-entitled iOS crowd often bring) is staggering, and the reps have discovered their future clientele.
October 27 2011 at 6:58 PM Report abuse Permalink +1 rate up rate down ReplyMeh. While I cringe at the trash talking it's hardly something unique to Sprint. I've seen it at every carrier. Verizon, T-Mobile, and Sprint reps all had to talk a big game about what they had to sell and downplay the competition. Also keep in mind those stores would tend to attract salesmen who were Android fanbois all those years when they didn't have it.
I know it'd be nice if they were all very level headed and fair and were all "Well, the iPhone that we don't sell might be better for some people's needs, but consider these other benefits Android Phone X can offer you, and also our lower prices on data before you make up your mind..." but the fact is phone salesmen crap on the competition's networks and phones, full stop. They're gonna say that stuff in order to sell phones.
If Apple had really given a crap about that situation, then they should have launched on all 4 carriers simultaneously. Coincidentally, that would also have stunted Android's growth as it was only the absence of a real smartphone for Verizon to offer, that allowed it to prosper, fueled by Verizon marketing dollars.
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