Is it really worth investing almost all your company can afford to in a product which hasn't even been revealed to the public? Sprint telecommunications thinks so. Having reported continuous losses, Sprint decided to invest 20 billion US Dollars at current exchange rate to purchase approximately 30.5 million iPhones for the next four years regardless of sale statistics. Details after the break.
Mr. Hesse told the board the carrier would have to agree to purchase at least 30.5 million iPhones over the next four years—a commitment of $20 billion at current rates—whether or not it could find people to buy them, according to people familiar with the matter. In order to keep the price people pay for the phone low and competitive with rivals, Sprint would be subsidizing the cost of each phone to the tune of about $500, which would take a long time to recoup even at the high monthly fees iPhone users pay.
This all-in investment from Sprint will either raise the company's income by a substantial margin or it might be the end of what we'll hear of it. Sprint is the only carrier which provides true unlimited data plans, and with this partnership (or investment) it aims to rival against AT&T and Verizon. There has been a report stating that Sprint's verzion of the iPhone 5 will have LTE support rather than the normal 4G HSPA+ network which would be released globally.
I have been told that Sprint will be getting the iPhone 5 — yes the real iPhone 5, not the iPhone 4S — as an exclusive. And it will be a WiMAX device. AT&T and Verizon would launch the iPhone 4S and get the iPhone 5 sometime in the first quarter of next year as an LTE device. Globally, the iPhone 5 might be available as a 4G HSPA+ device.
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