iPhone 5 Release Date: Sprint Happy with iPhone Investment
Sprint reported that the iPhone has been extremely successful on its network thus far.
Sprint's Chief Executive Dan Hesse announced at a recent third-quarter conference call that investing in the iPhone was "worth every penny," as the smartphone consumes approximately 50 percent less data compared to many Android handsets.
According to Hesse, this has allowed Sprint to retain its unlimited 3G data plans for smartphones. Sprint is the only major network that provides unlimited data plans for its smartphones.
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“One of the beauties of carrying the iPhone is it extends the period of time and increases the likelihood of us maintaining unlimited data longer because it uses our network so efficiently,” said Hesse to Forbes after the post-earnings call.
Just before the iPhone 4S was unveiled on Oct. 4, news broke that Sprint was completing a deal with Apple to acquire the iPhone.
The Wall Street Journal reported that Sprint had agreed to buy 30.5 million iPhones over the next four years, paying $20 billion for the bundle, at current rates, regardless of whether the phones sell.
Industry experts suggest that Sprint is paying up to 40 percent more than the industry average in subsidies, meaning each iPhone handset costs the company $200. They also projected that Sprint might not see profits for the iPhone until 2014.
However, Hesse noted that the iPhone has been a great benefit to Sprint.
“Our early results selling the iPhone and iPhone 4 confirm the iPhone’s ability to attract new customers,” Hesse said.
During the Oct. 14 release of the iPhone 4S, Sprint reported breaking its record for best day of sales by 1 p.m. EST.
Sprint reported that it expects a $7 million to $8 million boost in revenue due to high demand for the iPhone coupled with the fact that iPhone users tend to pay more for monthly service.
