iPhone 5 Release Date: Sprint Takes Risks by Carrying iPhone 4S, Stocks Fall Sharply
Sprint's stock drops as a result of carrying iPhone 5
Questions continue to swirl about the new iPhone, with most rumors suggesting that it would be the iPhone 5, but which has now been announced as the iPhone 4S.
The iPhone 4S has been unveiled at the “Let’s Talk iPhone” event in San Francisco, which began at 1 p.m. EST.
One of the main questions, at least from a business standpoint, is who is going to carry the new 4s?
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The debate, which surfaced last month, identified Sprint and T-Mobile as the two main contenders.
However, when contacted, T-Mobile chief USA executive Cole Brodman told Om Malik, “We’d love to have the iPhone whenever Apple makes that available.”
Critics have now agreed that Sprint will be added as a carrier of the new iPhone.
Exclusive Sprint coverage of the new edition is debatable, especially because Verizon and AT&T already have contracts with Apple.
AT&T Mobile chief Ralph De La Vega was spotted at the press conference this morning.
“Sprint is reportedly putting down $20 billion to provide several years’ worth [of iPhones],” reported CNN.
Sprint is predicted to buy 30.5 million iPhones in the next 4 years.
Critics argue that Apple’s choice of the Sprint carrier was a wise move, primarily because Sprint’s cheap rates will allow more coverage for more people.
What will this do for Sprint stock? Forbes Magazine predicts that Sprint is biting off more than it can chew, and such a large investment will cause it to hit rock bottom.
“No wonder Sprint’s stock was down 10 percent in yesterday’s trading session and is seeing heavy selling this morning,” reported Forbes.
Sprint bonds are currently at their lowest level since May 2009. The expensive deal it has made with Apple proves risky, and depending on sales, this product could make or break Sprint as a company.
Verizon and AT&T must settle on carrying current Apple products until it will be permitted to carry the 4S next year.
The press conference discussed a wide array of Apple news besides Sprint coverage. New CEO Tim Cook introduced new applications and the free download of the iOS 5 on October 12.
