Why It Makes Sense for Apple to Give Sprint The iPhone 5 Before Year's End
From a business standpoint it just makes sense. That's the logic behind Citadel Securities analyst Shing Yin's estimate that the next-gen iPhone will call Sprint home before the end of 2011. With AT&T and Verizon now sharing the carrier stage in the US, Apple is likely profoundly interested in expanding to the nation's third-largest wireless provider.
Sprint, which - like Verizon - runs the CDMA network, can easily be added to Apple's domestic carrier list - a move that stands to benefit all parties (except, maybe, AT&T and Verizon). “We believe Sprint could capture more than its fair share of iPhone sales," Yin writes, "especially if it gets the new model at the same time as AT&T and Verizon.”
The insightful Citadel Securities analyst believes the iPhone carrier expansion to Sprint is "increasingly likely," especially considering that with the inauguration of Verizon Communications tiered pricing for data tomorrow. "Sprint will be the sole remaining national carrier with an unlimited data plan offering, something desirable to Apple."
All told, a Sprint iPhone “could be a relatively stronger seller than the Verizon iPhone,” Yin speculates. "With lower prices on plans, a Sprint iPhone could offer an attractive proposition for more price-conscious users (a demographic that we think is increasingly important to Apple following the rise of Android),” a report from Barron's noted.