WSJ: Sprint Bets $20 Billion on New iPhone

October 3, 2011 -

The third largest wireless carrier in the United States is betting on the iPhone 5 in a big way. Sprint Nextel Corp. will pay Apple a whopping $20 billion dollars to give its customers access to iPhone 5, according to the Wall Street Journal. The company's top executive told Sprint's board that he expects to lose money on the deal until sometime in 2014.

He also reportedly said that the deal would require them to purchase at least 30.5 million iPhones over the next four years, according to a source familiar with the company. That's where that $20 billion dollar figure comes from.

According to the same insider source, board members seemed worried that the wait for the payoff in this deal was too long, and that the deal might outlast the iPhone's popularity.

"This is a bet-the-company kind of thing,'' a person familiar with Sprint's decision-making told the WSJ. He or she described the impact to the company's financials as "staggering." Whether the deal is bad or not, the Board of Directors ended up signing off on it and here we are.

Apple is expected to unveil its newest iPhone at its Cupertino, California event tomorrow. Sprint is expected to announce their plans to carry the device later in the week.

One advantage Sprint has over its competitors is that it still offers unlimited data plans. One would assume that such data plans would be available to new iPhone customers as well.

Source: WSJ

Image provided by ShutterStock. All rights reserved.


Comments

Re: WSJ: Sprint Bets $20 Billion on New iPhone

All they got was IPhone 4S and somehow they are supposed to sell it when the IPhone 5 could be right around the corner like the 3GS and how the Iphone 4 came out months later

 
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Matthew WilsonI like it, havent had any major issues.08/04/2015 - 5:45pm
MattsworknameSo, now t hta we have had time to mess with it, whats everyones view on windows 10?08/04/2015 - 5:43pm
james_fudgeNot I, said the fly.08/04/2015 - 4:31pm
Big PermAnyone use an Intel 750?08/04/2015 - 3:40pm
E. Zachary KnightSome great comments about gender diversity in game development from GDC Europe. http://gamasutra.com/view/news/250417/Women_in_the_game_industry_share_stories_of_improving_diversity.php08/04/2015 - 3:11pm
Sora-Chan@EZK: It's kind sad that kind of thing still occurs to this day (and for good reasons...)08/04/2015 - 2:33pm
E. Zachary KnightA woman author shares her experience submitting her manuscript to publishing agents under a man's name. http://jezebel.com/homme-de-plume-what-i-learned-sending-my-novel-out-und-172063762708/04/2015 - 1:21pm
james_fudgeme either. They are rolling it out in phases.08/04/2015 - 12:41pm
Big PermI haven't got my notification yet, even though I reserved it the day the pop up came.08/04/2015 - 12:27pm
james_fudgeThanks Matthew. I have not yet installed Windows 10, but the complaints about it have been minimal.08/04/2015 - 12:19pm
benohawkhttp://goo.gl/6yZ7EO suggests you can kill it all, but I haven't tested it on my system as of yet. And I wouldn't recommend digging in the registry or playing around withdisabling services for most users08/04/2015 - 12:18pm
Matthew Wilsonyes you can turn it off08/04/2015 - 12:15pm
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benohawkThe Win 10 data collection sounds scary, but I think it would be just too much data to be useful08/04/2015 - 11:57am
benohawkNo need to apologize Big Perm08/04/2015 - 11:55am
benohawkThe changing to 0 only being a 1 was local security policy change, not the reghack08/04/2015 - 11:49am
Big PermSorry Beno, it looks like you're right.08/04/2015 - 11:49am
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benohawkBig Perm, you can disable telemetry, just not through the gui. It's a matter of adding a registry key and disabling a couple services08/04/2015 - 11:34am
Big PermBlazers w/ t-shirts trigger me. This madness must be stopped08/04/2015 - 10:36am
 

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