Sprint needs iPhone 5 to turn around exodus

By Posted 29 Jul 2011, 17:42

The iPhone 5 looks set to be released in September with numerous rumors circulating of what the handset will be like. One recently is that Apple could release a handset which is universal which will work on all carriers. This won’t only be good news for consumers but also the likes of Sprint, who need the iPhone 5 to turn around the exodus of subscribers it is currently seeing.

While the carrier is home to some high spec Android handsets, it’s the company’s failure to compete with the likes of AT&T and Verizon which has been a problem. AppleInsider are reporting that its shares dropped just under twenty percent after the company revealed big wireless subscriber losses.

The company has been spending a lot of money building a faster WiMax 4G network as well as pushing its first 4G handset the HTC Evo 4G. But all this investment has so far not paid off with user numbers, especially with the increased competition with the iPhone carriers AT&T and Verizon.

During its last quarter Sprint suffered the loss of 101,000 subscribers, which dwarfs the predicted 15,000 losses analysts thought the carrier would suffer. Compared to AT&T who added 331,000 users, and Verizon who gained 1.3 million subscribers. Both the carriers benefitted from sales of the iPhone hitting 2.3 million during the period.

Joe Euteneuer Sprint’s chief financial officer said the company had decided to spend more in the second quarter to try and avoid getting “killed with market share”. But the trouble is this spending has mainly resulted in higher costs for the company, and hit its profit margin which was down to 16.3 percent. Wall Street was expecting this to be higher at 19 percent.

Sprint’s profit margins were badly hit by the company’s efforts to deliver rebates, in an attempt to tackle the launch of the iPhone 4 on Verizon, and the budget iPhone 3GS offered by AT&T. The company is warning that subscriber losses will continue to worsen for this quarter, but hoped to see growth for the whole calendar year.

Sprint has been one of the loudest voices with regards to AT&Ts buyout of T-Mobile, which would see AT&T have a bigger 4G LTE network. But Sprint is looking to move over to LTE technology which will benefit the carrier if the iPhone gets LTE capability. Getting the iPhone on Sprint will benefit all those involved, and is surely the best way forward.

Do you hope Sprint get the iPhone 5?

  • Sdfoihoa

    Theyh better get the iPhone…

  • Sprintman

    I’ve been using an Epic as a stopgap measure. Still buggy, and Samung/Sprint can’t get out an update to save their lives. If Sprint doesn’t get the iPhone 5, I’m gone — after 14 years.

  • Willing to Leave

    I have the Evo 4G and have wanted an iPhone since day one.  I used to work for an Apple retail store, and was there on launch day.  I was blown away with the iPhone – still am.  If Sprint gets the iPhone, I’ll likely stick with Sprint.  Should they botch this one, I’m leaving for greener pastures.  I love the great rate (and the corp discount I for working with a company on their corp discount list), but refuse to pay as much as I do per year for a phone that I’m not in love with.

  • valleydude

    I left Sprint in April of this year because of their pathetic 3G speeds and poor 4G coverage. They don’t care about the consumer having pathetic internet speeds. Sprint should worry just as much about their Internet speeds as they do about the cell phones they sell. They MIGHT stand a chance of surviving then.

  • Todd Hyle

    While I just committed to an Evo 3D I know plenty of Sprint customers who are waiting for the iPhone release. I pulled the trigger because HTC announced that in September they were going to send out an official root for several of their phones, including both of their Evo’s. I also realized that even if Sprint was offering the Apple right now I still would prefer the Android. The HTC root announcement was enough for me.