Leap Wireless Reports Improved iPhone Sales Amid Customer Losses

[MacRumors]

Leap Wireless today reported its first quarter financial results, noting improved iPhone sales amidst significant customer and revenue losses. Leap, which began offering the iPhone in June of 2012 through its subsidiary Cricket Wireless, announced in February that weak iPhone sales would prevent it from purchasing its full allotment of iPhones from Apple.

We are also seeing improved sales of our iPhone® offering, having worked with Apple on new advertising, pricing plans and other promotions, and we look forward to continuing to collaborate with them.

Despite an increase in iPhone sales, Leap Wireless is reporting a loss of 93,000 customers, along with a 4.3% decline in total revenue to $789.9 million from $825.6 million during the year-ago quarter.

Leap has a three-year contract with Apple that requires the company to purchase at least $900 million worth of iPhone hardware. As a super-regional carrier, Leap utilizes roaming agreements to serve its 5.3 million customers.

Article Link: Leap Wireless Reports Improved iPhone Sales Amid Customer Losses

 

[jayducharme]

The Company's results reflect the early improvements we expected from our focus on enhancing the customer experience

So by enhancing the customer experience, they expected to lose customers?

 

[illegalprelude]

So by enhancing the customer experience, they expected to lose customers?

The idea is that if they didn't offer the iPhone, they might have instead experienced a 150,000 subscriber loss or more.

 

[calisurfboy]

The people I generally see utilizing Cricket would be the ones to benefit from a low cost entry iPhone.....

 

[JAT]

Leap who?

 

[iSRS]

So this is both Cricket and Sprint having subscriber losses, but increases in iPhone sales? Is that correct?

And I agree, these pay as you go folks would benefit from a lower priced (not cheap) iPhone. Apple could, in theory, only offer it to Pay as you go carriers, and not the big boys. I know, personally, I will stick with Verizon (or, due to their upcoming removal of any incentive to stay with them policies, namely no early upgrades, switch to AT&T) in 2014, getting the just released iPhone at the time for myself and my wife. But for others? Lower cost could help.

 

[DrFu79]

I still find it unbelievable what you pay for unlimited calls in the US.
Here in Germany you can get a unlimited Voice plan for 34,95 EUR, no contract an in one of the strongest Carrier networks (Vodafone).

Source:
http://www.discotel.de/tariffs

Of course only the high-profile devices like iPhone make any sense with a contract. I expect the trend to continue.

EDIT: Allnet-Flatrate is under 30€, the upper plan already includes 500 MB of data

 

[ConCat]

I still find it unbelievable what you pay for unlimited calls in the US.
Here in Germany you can get a unlimited Voice plan for 34,95 EUR, no contract an in one of the strongest Carrier networks (Vodafone).

Source:
http://www.discotel.de/tariffs

Of course only the high-profile devices like iPhone make any sense with a contract. I expect the trend to continue.

EDIT: Allnet-Flatrate is under 30€, the upper plan already includes 500 MB of data

It depends on the network and the plan. Also keep in mind that limited is usually cheaper. Some people don't use their phone much, so paying for unlimited calling is ridiculous.

Wait a sec... 500mb of data? You consider that good in Germany?

 

[thekev]

Their CEO must hope the next leap will be the leap home.

 

[nancyfromafrica]

yes iPhone is not the next big thing now a days for customers thanks to Google's Android OS the same features/apps and better hardware comes at a much cheaper price.

 

[hexonxonx]

I still prefer T-Mobiles $30 100 minute plan. Last month, I used 47 minutes but I use text messages and data more than anything. Can't believe I was once paying AT&T $81 a month to use data and use 50 minutes.

Cricket was never an option in my mind all these years.

 

[extricated]

As others here touched on, I think this may demonstrate that although the iPhone is popular for carriers like Cricket (who target the "low-end" market), a "budget" iPhone could be a winner.
Everyone wants a smartphone, but certain demographics ONLY want these devices if they are free and with cheap carrier plans - no matter the brand/features.
I'm not trying to stir up a class-warfare debate. Who doesn't want to lowest price device with the latest technology? However, many people are perfectly content to pay a little more (or a lot more) for a better user experience and better hardware because they have the means to do it.
There are others who really do have to take what they can get.

 

[DMH3006]

As others here touched on, I think this may demonstrate that although the iPhone is popular for carriers like Cricket (who target the "low-end" market), a "budget" iPhone could be a winner.
Everyone wants a smartphone, but certain demographics ONLY want these devices if they are free and with cheap carrier plans - no matter the brand/features.
I'm not trying to stir up a class-warfare debate. Who doesn't want to lowest price device with the latest technology? However, many people are perfectly content to pay a little more (or a lot more) for a better user experience and better hardware because they have the means to do it.
There are others who really do have to take what they can get.

basically people that can't actually afford one while lower prices would be better i still don't think Apple should sacrifice their ecosystem by constantly releasing low-end versions which would simply use the A5 which is old now and would slow down the developers ability to improve their apps due to have to make them run smoothly on A5 devices.

 

[theBB]

Here in Germany you can get a unlimited Voice plan for 34,95 EUR, no contract an in one of the strongest Carrier networks (Vodafone).

The comparison is not apples to apples. I do not pay anything extra when I fly five hours to the east or five hours to the west for a weekend, while European carriers charge an arm and a leg for roaming. I also do not pay extra when I call a friend who lives at the end of that five hour plane ride away, while you need to pay more if you call a friend in London. When mom calls from a landline in Europe, she has to pay more, although this is not as much of a problem, now that everybody has a cell phone.

We used to have carriers that offered regional plans that covered only one or two states, where you would be expected to pay more if you made phone calls to and from other states. Despite the lower price, and despite the much larger size of these states compared to some EU countries, almost nobody signed up to those plans.

 

[spicynujac]

So Cricket agreed to pay more than their annual *gross* income (not profit) on iPhones? Pretty ridiculous! That will never happen.