Sprint Won't Make a Dime From The iPhone for Three More Years

[Michael Essany]

If it's true that "good things take time," then Sprint must have something amazing in store. Because it will have taken a veritable eternity in the mobile world for the iPhone to become profitable for the nation's third largest mobile carrier.

According to published reports Wednesday, Sprint CEO Dan Hesse isn't an impatient man. In fact, he sounds more than willing to wait another three years for the iPhone to become profitable for his company. As it turns out, that's how long it will take before Sprint's strategic investment yields any green.

Sprint is believed to be on the line for some $15.5 billion for selling rights to the iPhone. But when 2015 arrives, the gamble will have paid off, the Sprint boss asserts.

“We’re very happy with it,” Hesse said of Sprint’s deal with Apple, during the company’s annual shareholders meeting Tuesday. “Carrying the iPhone will be quite profitable.”

"In the long term," is Hesse's best answer when asked if the iPhone bet will prove wise. "Over time we will make more money on iPhone customers than we will on other customers." For Hesse's sake, however, that projection better manifest. Some Sprint shareholders are still irked that the deal was made with such a lengthy and uncertain gaze into the future.

Source: All Things D

[Lohand]

LOL! Good luck with that Dan-O. While Sprint waits for profitability the Russian, Vietnamese and Chinese crime rings are shipping their iPhones overseas hand over fist. Ouch!

[mustard05]

Het Micheal, why no article on the CEO of Verizon stating "grandfathered in" unlimited data plans are on the way out?

[bigboyz]

haha..OUCH! Well they will eventually make a profit..guess that's a good thing. When a company is hanging on by the tips of their fingers..never a pretty sight..good luck with that!

[andypropaganda]

LOL! Good luck with that Dan-O. While Sprint waits for profitability the Russian, Vietnamese and Chinese crime rings are shipping their iPhones overseas hand over fist. Ouch!

Anyone mind explaining this guys comment to me? And if it makes sense? Thanks.

[swifty7]

I just hope this does not mean that they're going to start to screw with us customers. And if they really want to attract new customers, they should definitely improve their pretty much useless 3g networks.

[hitman10]

if the iphone is the most popular in 3 years... thats a long time.

[scroogelives]

Anyone mind explaining this guys comment to me? And if it makes sense? Thanks.

Not a clue lol think he's been watching too many films lol

if the iphone is the most popular in 3 years... thats a long time.

It's a calculated gamble and let's face it there is nothing on the market today that will dent iPhone sales! Reason being large amounts of iPhone users have content that can't be moved to another phone!

[lungho]

Anyone mind explaining this guys comment to me? And if it makes sense? Thanks.

His comment makes no sense seeing how CDMA phones don't work on a GSM network.

[Eonhpi]

Well sprint needs to update the 3G coverage.

[firetwuck]

He took a gamble and if nothing else it stopped customers from churning. It was a smart move, we'll see if it pays off.

[Goof]

Sprint has the best deals regarding plans. AT&T and Verizon have the exact same plans for 3 lines. Sprint is cheaper then both of them for 3 iPhones lines by $100.

[Kenn@rd.]

Well sprint needs to update the 3G coverage.

They are...

[Lohand]

His comment makes no sense seeing how CDMA phones don't work on a GSM network.

So let me clarify. (1) The Apple iPhone 4S that Sprint sells is both CDMA & GSM compatible (2) To your point, Sprint has been comfortable selling only CDMA/WiMax devices which have limited global compatibility and they haven't had to worry about all of the scams associated with global GSM phone trafficking. (3) All of a sudden a GSM capable iPhone lands on their door step and BAM! here comes the crime rings and scammers and Sprint has been caught off guard. (4) Couple it with them waiting 3 years out for profitability and yea, this is an OUCH condition. A big one with no end in sight...