Will this be the straw that breaks Sprint's back?

http://online.wsj.com/article/SB10001424052970203…

Sprint, the No. 3 U.S. wireless carrier, is making a multibillion-dollar gamble that access to the iPhone will be the ticket to a turnaround. Sprint has committed to buy at least 30.5 million iPhones, even though it would likely lose money on the deal until 2014, according to people familiar with the matter.

Can sprint afford to lose money until 2014?? Also does anyone believe that Sprint, with currently 52 million subscribers will be able to sell 30.4 Million phones? If Sprint isn't able to do this, what would likely happen, with the DOJ blocking the AT&T-T Mobile merger, a larger cell company likely wouldn't be able to acquire them

Your thoughts?

3 Comments
 
Best Response
whatwhatwhatI hope not, I like paying $50 a month for unlimited everything.

What's up, Sprint-buddy? Also hoping to hang onto $50 for as long as possible.

I get that Sprint wants the iPhone so it can attract some of the Apple userbase. But right now, customers lack a compelling reason to switch networks. Cancellation fees, family plans, and just the general hassle of switching discourage people from changing.

Sprint, outside of its legacy plans, does slightly outperform on price. But the people buying iPhones are not cash strapped to begin with. For all their talk about truly unlimited data, it is non-issue for most.

Personally, I think Sprint should have found a partner that isn't price-gouging them. Couldn't they have gotten some sort of exclusivity contract with an android manufacturer? Even RIM? The price they paid for the iPhone will prevent them from breaking even on it for years...especially with Steve Jobs gone, is the long term dominance of the iPhone really such a sure thing?

 

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