• Home
  • Apple
  • News
  • Sprint Won’t Show a Profit From the iPhone until 2015, But Has no Regrets

Sprint Won’t Show a Profit From the iPhone until 2015, But Has no Regrets

Sprint Won’t Show a Profit From the iPhone until 2015, But Has no Regrets

Sprint’s CEO says his company’s up front payment to offer the iPhone is a long-term investment that won’t see any returns until 2015. But, he says he and his company are “very happy” with their deal with Apple.

AppleInsider:

Sprint is estimated to spend $15.5 billion on the iPhone over the next four years, but by 2015 its investment will be “quite profitable,” CEO Dan Hesse said during his company’s shareholder meeting on Tuesday, according to All Things D. He added that he and his company are “very happy” with Sprint’s deal with Apple.

“We believe in the long term,” Hesse said. “And over time we will make more money on iPhone customers than we will on other customers.”

Hesse has recently been under fire from shareholders who believe that Sprint’s iPhone deal with Apple isn’t good for the carrier. He returned $3.25 million in compensation last week, after some expressed dismay that Sprint had excluded the financial effect of the iPhone when calculating employee bonuses.

Sprint has agreed to purchase 30.5 million iPhones from Apple for nearly $20 billion over the next four years. A deal that has lead some analysts to view it as a move that “bet the company” on the iPhone.

Hesse says he believes the upfront investment his company is making in the iPhone will pay off for the company in the long term, as it will bring in higher-value customers to the carrier. Sprint’s belief is that the iPhone users are “more profitable” than other customers, such as those who buy Android smartphones. Hesse has previously been quoted as saying iPhone users use less data on average than other smartphone customers, and so, costs network operators less money.

  1. opensea nft says:

    949810 73583Thank you for your extremely very good details and feedback from you. car dealers in san jose 386569

  2. 702930 253326I like this web site because so much useful material on here : D. 115656

  3. 28379 910760Greetings! This is my first comment here so I just wanted to give a quick shout out and say I genuinely enjoy reading through your posts. Can you suggest any other blogs/websites/forums that cover the same topics? Thanks a lot! 682853

  4. 168939 367859Usually I try and get my mix of Vitamin E from pills. Even though Id actually like to by means of a amazing meal strategy it can be rather hard to at times. 513771

  5. nova88 says:

    46305 785832I havent checked in here for some time as I thought it was finding boring, but the last few posts are great quality so I guess Ill add you back to my everyday bloglist. You deserve it my friend 590023

Leave a Reply

Your email address will not be published.