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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Andrew EisenConster - Don't know. Got a link to whatever you're referring to?08/30/2014 - 7:04pm
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MaskedPixelantehttp://m.tickld.com/x/something-you-never-realized-about-guardians-of-the-galaxy Right in the feels.08/29/2014 - 6:56pm
AvalongodAgain I think we're conflating the issue of whether Sarkeesian's claims are beyond critique (no they're not) and whether its ever appropriate to use sexist language, let alone physical threats on a woman to intimidate her (no it isn't)08/29/2014 - 5:04pm
prh99Trolling her or trying to assail her integrity just draws more attention (Streisand effect?). Which is really not what the trolls want, so the only way to win (if there is a win to be had) is not to play/troll.08/29/2014 - 5:02pm
prh99Who cares, just don't watch the damn videos if you don't like her. Personally, I don't care as far as she is concerned as long there are interesting games to be played.08/29/2014 - 4:34pm
Andrew EisenZip - And yet, you can't cite a single, solitary example. (And no one said you hated anyone. Along those lines, no one claimed Sarkeesian was perfect either.)08/29/2014 - 3:51pm
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james_fudgeWe appreciate your support :)08/29/2014 - 2:55pm
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E. Zachary KnightZippy, So you can't find even one?08/29/2014 - 1:04pm
ZippyDSMleeAndrew Eisen:Right because shes prefect and never exaggerates... *rolls eyes*08/29/2014 - 12:53pm
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Sleaker@AE - aren't most people fundamentally misunderstanding her at this point? haha.. On a related note I think a lot of the backlash is coming from males that think she is telling them their 'Generic Male Fantasy' is bad and wrong.08/29/2014 - 12:33pm
Andrew EisenAnd no, I don't think the female community would be upset over the performance of a case study in and of itself. Possibly the mostivations behind such a study, the methodology or conclusions but not the mere idea of a case study.08/29/2014 - 12:29pm
Andrew EisenAmusingly, these videos aren't saying you can't/shouldn't use tropes or that sexual representations are inherently problematic so those are very silly things to have a problem with and indicate a fundamental misunderstanding of the series.08/29/2014 - 12:29pm
 

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