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  • Sprint Sells Tons of iPhones, Adds 1.6 Million Subscribers, Posts $400 Million 4Q Loss




    Sprintís 4th quarter marked the first time the benefits of the iPhone would influence their bottom line. Sprintís earnings report definitely felt the iPhone influence, but not a way that excites investors.

    Sprintís subscriber base increased during the 4Q last year as the company added 1.6 million subscribers. The company sold 1.8 million iPhones last quarter as well, with 40% of Sprint iPhone buyers being new customers. However, in spite of all this positive data Sprint reported a net loss for the quarter reporting operating losses of $438 million up from $139 million during the 4Q last year.

    The cost of admission into the iPhone party and Sprintís ongoing mission to consolidate itís network technology as the carrier moves to 4G LTE has sliced the carrierís operating margin in half. This cut in margins resulted in a $1.3 billion net loss for the year which actually beat many Wall Street projections by a small amount.

    The question for Sprint as they move forward with the iPhone in tow: ďWill the benefits of Appleís device outweigh the cost of investment?Ē If Sprint can stay afloat long enough to finish their 4G LTE network conversion, and continue to add iPhone and other users each year, the answer will likely be yes. But, thereís no guarantee that will happen, and with Appleís phone bleeding the company dry in the short-term Sprint canít afford for any mistakes.

    Source: Mac Rumors
    This article was originally published in forum thread: Sprint Sells Tons of iPhones, Adds 1.6 Million Subscribers, Posts $400 Million 4Q Loss started by Phillip Swanson View original post
    Comments 17 Comments
    1. swifty7's Avatar
      swifty7 -
      I'm overall happy with Sprint but they really need to improve their 3g network speeds so that it stays constant.
    1. ginob13's Avatar
      ginob13 -
      isnt that a picture of and iphone 4?
    1. Airwaves182's Avatar
      Airwaves182 -
      Quote Originally Posted by ginob13 View Post
      isnt that a picture of and iphone 4?
      Yea silly picture
    1. prozac4312's Avatar
      prozac4312 -
      DAMN they got boned...holy hell.
    1. boxxa's Avatar
      boxxa -
      From a financial standpoint, if Sprint is making money from subscribers, their net loss could be a result of them dumping money into new technologies and expanding for their LTE technology. I don't think necessarily that Sprint not doing good or bleeding money.
    1. unison999's Avatar
      unison999 -
      Quote Originally Posted by ginob13 View Post
      isnt that a picture of and iphone 4?
      I think they have iPhone4 as well as iPhone4S.
      A co-worker here has either Sprint or Verizon, she has an iPhone4 (not an 4S I checked).


      They mention new subscribers, what about the numbers for the subscribers they lost? That also cut into their profits.

      I am thinking about going back to Sprint, getting sick of AT&T bad signals. Need one with ability to use unlocked GSM so I can use it when I am out of the country.
    1. sziklassy's Avatar
      sziklassy -
      Quote Originally Posted by boxxa View Post
      From a financial standpoint, if Sprint is making money from subscribers, their net loss could be a result of them dumping money into new technologies and expanding for their LTE technology. I don't think necessarily that Sprint not doing good or bleeding money.
      Sprint has been posting nothing but losses for years. They gambled on wimax and failed. Here's to hoping their LTE pans out, and they actually build out the network, because currently it is abysmal.
    1. Raybeast's Avatar
      Raybeast -
      ModMyi BF3 Aftershock got released, you should do an article on how terrible it is.
    1. Captinsmooth's Avatar
      Captinsmooth -
      What an amazingly obvious and shortsighted article! Your points concerning Sprint are absolutely correct and totally taken out of context. It's correct in stating the number of phones sold by Sprint and their losses for the quarter. HOWEVER, once Sprint pays Apple for the phones, they rake in money for two years. At $70 per month, that's an astounding $1680, meaning they'll gross over 1350 per phone sold. The loss you indicate (also experienced by other carriers) is simply a short-term cash flow issue.

      Next time, try looking at situations for longer than 3 months at a time. I realize you may be challenged in attempting this, but give it a try! With practice, you may actually be able to look at such things as yearly profits! Wow! You'll be right there playing with the big boys.
    1. drama3434's Avatar
      drama3434 -
      I just jumped from AT&T to Sprint, the 3G speeds are really slow, Sprint claims once it's all converted that our iPhone speeds should be faster than AT&T or Verizon!
    1. Eonhpi's Avatar
      Eonhpi -
      I believe that they loss a lot and but that because they spent do much on network upgrades and such just in my area they have built 6 more towers and will be more within the next say 6 months or so. They are just a little behind but once they are done they should be with or more above AT&T or Verizon .
    1. SergeantMAC's Avatar
      SergeantMAC -
      Quote Originally Posted by drama3434 View Post
      I just jumped from AT&T to Sprint, the 3G speeds are really slow, Sprint claims once it's all converted that our iPhone speeds should be faster than AT&T or Verizon!
      Ya so says Sprint ha
    1. JLick's Avatar
      JLick -
      I'm satisfied with Sprint. And yes, they're only at a loss currently because of the money they owe Apple. Not gonna repeat everything Captainsmooth said, but ye it's easy to do some quick calculations to see how much money they will gross from this...
    1. Antman217's Avatar
      Antman217 -
      Quote Originally Posted by drama3434 View Post
      I just jumped from AT&T to Sprint, the 3G speeds are really slow, Sprint claims once it's all converted that our iPhone speeds should be faster than AT&T or Verizon!
      Yeah by the time they update their 3G to be even half the speed of AT&T or Verizon, everyone else will be on 4G
    1. Nickaroni22's Avatar
      Nickaroni22 -
      Quote Originally Posted by drama3434 View Post
      I just jumped from AT&T to Sprint, the 3G speeds are really slow, Sprint claims once it's all converted that our iPhone speeds should be faster than AT&T or Verizon!
      That's what all providers say......
    1. Dayvidpriddy's Avatar
      Dayvidpriddy -
      I jumped ship and switched to Sprint as well, unfortuntely, their data connection just doesn't work, period! Most people barelly get 0.20mbps download speed. After a few weeks I could no longer deal with it, it cost me a fortune to leave after the 14 day grace period, the fact they even charge a fee when their data is next to non-existant is unbelievable and should be a crime!

      Don't go to Sprint people, you will regret it...trust me! They can't handle the data and their entire data network is basically dead! Don't believe me? Hit up Sprint forums and check out the iPhone 4S forums, there are numerous threads about no data speeds, one has over a half a million views and over 2,400 posts!

      Don't switch to Sprint people!
    1. sziklassy's Avatar
      sziklassy -
      Quote Originally Posted by Dayvidpriddy View Post
      I jumped ship and switched to Sprint as well, unfortuntely, their data connection just doesn't work, period! Most people barelly get 0.20mbps download speed. After a few weeks I could no longer deal with it, it cost me a fortune to leave after the 14 day grace period, the fact they even charge a fee when their data is next to non-existant is unbelievable and should be a crime!
      Respectfully, what were you waiting for? Two works should be plenty of time for you to realize there is no decent speed in your area.