Sales of the iPhone Fall 50% Short at Leap Wireless
In a recent filing with the U.S. Securities and Exchange Commission that was filed by Cricket, it was revealed that the company expects to sell half the number of iPhones it committed to move over the first year of its agreement with Apple.
For those of you who didn’t already know, Cricket began carrying the iPhone 4 and iPhone 4S in June of 2012 after entering into a commitment with Apple worth some $900 million, although weaker than expected sales may see the telecom miss the deal’s first year obligations. As noted by the folks at BGR
, Cricket’s Chief Operating Officer Jerry Elliot previously claimed that “sales of Apple devices were pretty good in the fourth quarter.”
When the carrier first began sales of the iPhone, it was estimated that the provider paid Apple a $150 subsidy for every contract-free iPhone 4S sold on its network. Following the launch of the iPhone 4 and iPhone 4S on its network, Cricket rolled out Apple’s latest iPhone 5 on September 28, which was just one week after the handset started sales with major carriers such as AT&T, Sprint and Verizon.
With Cricket’s pay-as-you-go pricing, customers pay $55 a month for an “unlimited” plan that includes talk, text and data. The carrier offers wireless voice and mobile data services over 4G LTE and 3G CDMA through Leap Wireless and as of September 2012, Cricket has been servicing over six million subscribers. This still didn’t end up being enough to help the company reach its committed number though.