Sprint Commits to Buying $20 Billion Worth of iPhones, To Get Redesigned iPhone 5 Exclusively?

[divinox]

The would get most of that from the continued subscriptions of current customers who didn't get up and leave for another carrier just to get an iPhone. And Sprint knows exactly how many subscribers have been leaving them with each new iPhone introduction, and with each contract expiration. They may have to do almost anything ($20B in debt?) to put a tourniquet on the bleeding.

Like stated, even if they ended up with +30mn customers, they would also need to rake in (an additional) 1k in profits (relative the alternative) from each customer. Unless you have extremely high margins, and really high phone bills, in the states, well... i just dont see how they would ever break that one even.

And, even if they could, money could definitely be better spent elsewhere.

 

[rocknblogger]

BTW, Sprint lovers, reality check. For a single user, 450 minutes, Sprint is $80, AT&T is $85, Verizon is $90. T-Mobile with 500 minutes is $70. Not much savings going on around there. May as well get the AT&T or Verizon coverage with those prices.

You're looking at new pricing. I pay $129 for 2 lines. We have 1500 minutes and unlimited data. I pay an extra $20 for a USB WiFi stick. Tell me that sucks
2 EVO 4G phones on the account.

 

[DakotaGuy]

Not correct according to this. Verizon passed AT&T in subscriber numbers in 2009, about two years after AT&T got the iPhone.
http://www.networkworld.com/news/2009/042709-verizon-suscriber-lead.html

The Alltel purchase put them ahead of AT&T, however those two pretty much run the whole show anyhow. If the AT&T-T-Mobile merger ever gets approval I expect Verizon to go after Sprint. Neither wants to be number 2.

 

[rquick]

Interesting - Why wouldn't Apple give a carrier a 90 day exclusive? That doesn't seem like much to give up but imagine how many people Sprint would pick up from the other carriers because they simply can't wait until January. Our ilk is pretty much about instant gratification so you would get a lot of people that either:

* Had a contract coming up
* Was not happy with Verizon or AT&T
* More than a few that could not bare to see others have the 5 ahead of them

I can see some method in this madness. You announce at the same time, but availability for the others is january. Plausible at some level.

So if you are Verizon and AT&T you just bow and say - yes master, take our customers to save Sprint. We can wait. The whole idea seems a little far fetched - especially since there is no upside for Apple. You say more money, but they are going to get that money anyway. They will sell every iPhone that Foxconn can make, regardless.

 

[AppleScruff1]

The Alltel purchase put them ahead of AT&T, however those two pretty much run the whole show anyhow. If the AT&T-T-Mobile merger ever gets approval I expect Verizon to go after Sprint. Neither wants to be number 2.

Correct. And a few years before that, AT&T bought Cingular which put them ahead of Verizon. My only reason for bringing up any of this was as a counter point to the claims that a carrier couldn't survive without the iPhone. Verizon added subscribers quarter after quarter with no iPhone. Their success has nothing to do with the iPhone. IMHO, to suggest that not having the iPhone is responsible for Sprint's problems is ludicrous.

 

[rquick]

The Alltel purchase put them ahead of AT&T, however those two pretty much run the whole show anyhow. If the AT&T-T-Mobile merger ever gets approval I expect Verizon to go after Sprint. Neither wants to be number 2.

Why do you say that? What difference does it make who is the largest? They just want to grow. They just want to make money. Buying customers with a system going under doesn't necessarily make more money. If it makes sense for V to by S, they will do so regardless of who is number 1. Big companies think profit. It is not a football game - and if it is, the score is kept in $$.

 

[monoskier]

…
Even if it were the iPhone 5 tomorrow. The article already mentions the fact that no one's contracts are up. It wouldn't make much difference no matter what iPhone Sprint got if we're all still locked in.

I understand I'm in the minority, but not all of us are under contract with a iP4. I've been out of contract on a 3G for over a year. (And to make it worse, the mute switch, vibrator and power switch on top have all be broken since February.)

I came from Sprint and a SERO plan. But there is a reason I left them, and it wasn't for the iPhone. No way I'd go back.

If Sprint gets the only iP5 tomorrow and everyone else gets it early 2012 I'll probably wait. I highly doubt Apple would make it public that everyone else will get the iP5 around a certain date though. If they announced that they'd all but kill all 4S sales as informed buyers would jus wait another 3-5+ months. Seriously, after waiting this long, whats another few months?

 

[alphaod]

I'd be fine with the iPhone 5 being a Sprint exclusive as long as they also release an unlocked version here in the US for people who don't care about paying full price (obviously I'm expecting the iPhone 5 to support both CDMA and GSM).

 

[Juan007]

Sprint is THE WORST carrier in the country.

Imagine this situation... Sprint offers a $30 unlimited data + text + many voice minutes plan. Sounds great, right? Well it was great for about a few years, enjoyed it with my Palm Treo. Then I wanted to upgrade to a decent phone... Sprint said nope. Bought a CDMA HTC Hero on Ebay? Sorry, can't use it, your plan "is not compatible" (meaning: WE WANT ALL YOUR MONEY). I left Sprint to get an iPhone and haven't looked back. There are still chumps with Palm Treos on Sprint because they are locked down, Sprint will NEVER let them upgrade unless they dump their plan.

Basically these bait and switch tactics are why Sprint will NEVER succeed. They wanted more money from me, instead they got $0. IF Sprint has exclusive iPhone 5, they will charge double for it, or they will make sure that you're stuck with iPhone 5 for the next 5 years or more. Just say NO to Sprint.

 

[dampfnudel]

You're looking at new pricing. I pay $129 for 2 lines. We have 1500 minutes and unlimited data. I pay an extra $20 for a USB WiFi stick. Tell me that sucks
2 EVO 4G phones on the account.

What about your future "all Sprint customers in the same boat" plan?

 

[Juan007]

You're looking at new pricing. I pay $129 for 2 lines. We have 1500 minutes and unlimited data. I pay an extra $20 for a USB WiFi stick. Tell me that sucks
2 EVO 4G phones on the account.

You'd better enjoy that EVO for a long, long time, because after Sprint's $20 billion bribe package, either your rates or going UP or you'll be locked into that phone forever. Just like Sprint locked people into Palm Treos for 5 years... enjoy your EVO for 5 years.

Oh and I pay $62 monthly INCLUDING TAX for basically infinite minutes, unlimited data, AT&T iPhone 4. Sucks to be with Sprint... inferior service, inferior plans, inferior network, inferior phones... well, that last one only until Oct. 14th... $20 billion spent, one problem solved. Now only 3 problems left to not become the worst carrier in the world...

 

[rocknblogger]

Sprint is THE WORST carrier in the country.

Imagine this situation... Sprint offers a $30 unlimited data + text + many voice minutes plan. Sounds great, right? Well it was great for about a few years, enjoyed it with my Palm Treo. Then I wanted to upgrade to a decent phone... Sprint said nope. Bought a CDMA HTC Hero on Ebay? Sorry, can't use it, your plan "is not compatible" (meaning: WE WANT ALL YOUR MONEY). I left Sprint to get an iPhone and haven't looked back. There are still chumps with Palm Treos on Sprint because they are locked down, Sprint will NEVER let them upgrade unless they dump their plan.

Basically these bait and switch tactics are why Sprint will NEVER succeed. They wanted more money from me, instead they got $0. IF Sprint has exclusive iPhone 5, they will charge double for it, or they will make sure that you're stuck with iPhone 5 for the next 5 years or more. Just say NO to Sprint.

Here's the thing with your situation on Sprint. Back then there were different data plans for different phones. There was a plan for Blackberry, Palm, Windows and finally feature phones. When the Android phones came out they had to create a different plan for the Android phones but they were all more or less the same price. So yes when you walked in with your Hero (I had one too) the plan you had was not compatible. But it wouldn't have cost you any more because that's exactly what the plan price was for the Hero, $30. I don't remember all the details but the plans were not interchangeable from a technical side.

 

[rocknblogger]

You'd better enjoy that EVO for a long, long time, because after Sprint's $20 billion bribe package, either your rates or going UP or you'll be locked into that phone forever. Just like Sprint locked people into Palm Treos for 5 years... enjoy your EVO for 5 years.

Oh and I pay $62 monthly INCLUDING TAX for basically infinite minutes, unlimited data, AT&T iPhone 4. Sucks to be with Sprint... inferior service, inferior plans, inferior network, inferior phones... well, that last one only until Oct. 14th... $20 billion spent, one problem solved. Now only 3 problems left to not become the worst carrier in the world...

Wow, your not embarrassed to trash Sprint and admit you're with AT&T? That is about the funniest least genuine thing you could have said, LOL!!!

 

[kuwxman]

Sprint is THE WORST carrier in the country.

Imagine this situation... Sprint offers a $30 unlimited data + text + many voice minutes plan. Sounds great, right? Well it was great for about a few years, enjoyed it with my Palm Treo. Then I wanted to upgrade to a decent phone... Sprint said nope. Bought a CDMA HTC Hero on Ebay? Sorry, can't use it, your plan "is not compatible" (meaning: WE WANT ALL YOUR MONEY). I left Sprint to get an iPhone and haven't looked back. There are still chumps with Palm Treos on Sprint because they are locked down, Sprint will NEVER let them upgrade unless they dump their plan.

Basically these bait and switch tactics are why Sprint will NEVER succeed. They wanted more money from me, instead they got $0. IF Sprint has exclusive iPhone 5, they will charge double for it, or they will make sure that you're stuck with iPhone 5 for the next 5 years or more. Just say NO to Sprint.

Every carrier does that... Sprint is FAR from the worst carrier in the US.

Came to AT&T from Sprint. Never had an issue with Sprint and haven't with AT&T. A lot depends on what is said tomorrow, but I'd jump back to Sprint in a heartbeat.

 

[shrtmkr]

I'd be fine with the iPhone 5 being a Sprint exclusive as long as they also release an unlocked version here in the US for people who don't care about paying full price (obviously I'm expecting the iPhone 5 to support both CDMA and GSM).

this.

 

[erijkgabriel]

iphone 5 = ipod touch 4g? exclusivity for sprint

thinking out loud

iphone 5 = ipod touch wimax? exclusivity for sprint
internet calling on a touch would make it a new device, therefore there's no real evidence of this iphone 5, as case designs would make us think, since this simply will not be a new iphone. so the cases will fit the new sprint device. at&t & verizon have the newest phones (4S) and sprint the new device.

too good to be true

 

[Jocelyn84]

Sprint is THE WORST carrier in the country.

Imagine this situation... Sprint offers a $30 unlimited data + text + many voice minutes plan. Sounds great, right? Well it was great for about a few years, enjoyed it with my Palm Treo. Then I wanted to upgrade to a decent phone... Sprint said nope. Bought a CDMA HTC Hero on Ebay? Sorry, can't use it, your plan "is not compatible" (meaning: WE WANT ALL YOUR MONEY). I left Sprint to get an iPhone and haven't looked back. There are still chumps with Palm Treos on Sprint because they are locked down, Sprint will NEVER let them upgrade unless they dump their plan.

Basically these bait and switch tactics are why Sprint will NEVER succeed. They wanted more money from me, instead they got $0. IF Sprint has exclusive iPhone 5, they will charge double for it, or they will make sure that you're stuck with iPhone 5 for the next 5 years or more. Just say NO to Sprint.

Ehhh Sero changed October 2010. 3G phones are $40/month, while 4G phones cost $50/month for "essentially" unlimited everything.

Edit: Not that I'll be getting one, but I bet iPhone 5 will be available to Sero people for $50/month.

 

[davidpierce]

sprint's phone description shop for a phone page down...

updating for iPhone 4s/5????? they need this long to update it? the announcement isn't for 9 hours?

http://shop.sprint.com/maintenance/index.html?INTNAV=ATG:HE:Phones

 

[skinned66]

I'd have a real problem with this if I lived in the US. Good for both companies but bad for the consumer IMO. It sucked when AT&T did it and while Sprint might suck less I'm sure it will suck for people who don't want Sprint all over again.

 

[jpn]

iPod will morph into a device that allows voice but has no physical SIM (the rumoured non-physical SIM that most carriers dont want to offer)
4" screen.
game device.

iPhone 5 will be launched tomorrow on all compatible networks (including Sprint).
has iPhone 4 physical shape. HSPA+, etc, Assistant. NFC.

 

[sineplex]

I guess it would be

iPhone 5 - Sprint exclusivity in the US over the holiday period, possibly a 4G device. The problem Apple may be facing is that US carriers call all sorts of things 4G, on ATT is HSPA+ and LTE, on Sprint its WiMax (or LTE), on Verizon its purely LTE.

If Apple pre-sells fro $20 billion. Pre-sells
What on earth do they have to worry about? It's already SOLD!
They could call it 2G! It's sold! - end of story.

 

[ChaseEversole]

I'm still holding true to what Al Gore said. "[...]releasing the iPhones... <-----" (emphasis on the plural).

8 hours!

 

[KnightWRX]

What?

iPhone 3G -> 3G(S)

iPhone 4 -> 4(S)

How did you come up with the idea that I thought the 3G was the 3rd iPhone?

iPhone 4(S) makes as much sense as the 3G(S) - and that is what they actually named it.

You quite don't understand. They named the 3GS the 3GS because the 3 couldn't be used. The iPhone 3G (2nd iPhone) would have sounded superior to iPhone 3 (the 3rd iPhone), hence they used 3GS.

For the "4S", the 5 can be used. There is no logic in what you say. 4S doesn't make logical sense. If they end up using it, it still makes no logical sense and has a negative marketing connotation at this point.

That is my whole point. The "3GS" situation does not exist now.

----------

Umm, there is no iPhone 4G. It's the iPhone 4, and the naming system is consistent. When it's not a major change, but mostly a speed increase, they used the S moniker.

Hum, the 3GS was a major change from the 3G. The 3G was only a minor change if anything. It was basically a new case, a 3G chip and less battery life.

 

[r.j.s]

You quite don't understand. They named the 3GS the 3GS because the 3 couldn't be used.

Actually, they named the 3GS, 3G(S) because it was a faster version of the 3G. It was the same form factor as the 3G, just with better internals.

Check the intro (around 2:15): "The "S" simply stands for speed."

http://www.youtube.com/watch?v=q2RuEuAuloA&feature=related

If the next version of the 4 is nothing but a spec increase in the same body style, then it will be fitting to simply call it 4(S)

 

[vitzr]

At the end of the day, the reality is Apple always gets the best of the deal. Period. Exclusive or not, they don't care as long as the money flows into Apples coffers.

We all know that as fact. Only the people who actually believe Apple cares about their customers first, are wrong. Everything else is minutia.