Sprint buys 30.5M iPhones from Apple for $20B in 'bet-the-company' move

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Comments

  • Reply 141 of 180
    Some are saying Sprint will get the new phone exclusively for 6 months before AT&T and Verizon. If true that worries me greatly, that's April. Does that mean their future iPhone release schedule will always be October-ish and not June/July?? If so, that stinks - to me!!! If I don't like this new phone I was hoping to get next years model next summer not next Autumn. I dont like late year phone releasing - This stinks (if true)!!!
  • Reply 142 of 180
    adonissmuadonissmu Posts: 1,776member
    Quote:
    Originally Posted by cykz View Post


    In spite of the ludicrousy of the idea that Sprint would have the iPhone5 exclusively for four years I do think it sounds logical.



    Since the introduction of the iPhone it became immediately clear that mobile phone services were about to change drastically. First the iPhone introduced Visual Voicemail. A replacement for a succesful service then provided by carriers as an add on for which you had to pay extra. Visual Voicemail actually brought the data to your phone, which could be done by wireless connections as wel...



    Then came the apps.. such as WhatsApp diminishing lucrative SMS services.

    And Skype was among them, artificially prohibited on 3G networks but clearly capable in delivering mobile telephony at a fraction of the cost. At a certain point the iPod Touch became a serious alternative for having low cost telecommunication through local wireless networks.



    Now... my guess is that the future of mobile telephony is internet only. Sure we need frequencies for that, but as long as carriers are not willing to ditch lucrative old fashioned services, Apple is not capable of innovating towards their (I guess unknown) vision.



    So in order to improve this it might be an excellent strategy to team up with a carrier who has the guts and despair to innovate alongside Apple, who is large enough to gain traction and put competition in quality service back again for the top carriers. I'd say Apple single handedly is protecting competitiveness among the largest carriers. And I wish Sprint success in their desperate but bold jump back in the race. They might prove to be Apple worthy partners really innovating the telcom industry.



    Well said. One thing about Sprint is that it has been trying to innovate while other carriers like Verizon and AT&T have relied more on marketing dollars than investments in improving the quality of their service.
  • Reply 143 of 180
    pokepoke Posts: 506member
    Here's my wild speculation: The iPhone 5 is a SIMless, data-only phone that uses VOIP and iMessage for voice and SMS. You only need a data plan to use it. Only Sprint was willing to sign up for this revolution but Apple is producing the less revolutionary 4S for reluctant carriers. The idea is that Apple is hoping lots of people will flock to the carriers like Sprint that have the iPhone 5, forcing the other carriers to give in to Apple's demands.
  • Reply 144 of 180
    cameronjcameronj Posts: 2,357member
    Quote:
    Originally Posted by poke View Post


    Here's my wild speculation: The iPhone 5 is a SIMless, data-only phone that uses VOIP and iMessage for voice and SMS. You only need a data plan to use it. Only Sprint was willing to sign up for this revolution but Apple is producing the less revolutionary 4S for reluctant carriers. The idea is that Apple is hoping lots of people will flock to the carriers like Sprint that have the iPhone 5, forcing the other carriers to give in to Apple's demands.



    While this kind of revolution would be great for consumers, it would suck for Apple. The entities that currently pay 2/3 of every iPhone dollar that Apple gets are the carriers worldwide, and this would screw them and thus hurt Apple. Not going to happen.
  • Reply 145 of 180
    adonissmuadonissmu Posts: 1,776member
    Quote:
    Originally Posted by poke View Post


    Here's my wild speculation: The iPhone 5 is a SIMless, data-only phone that uses VOIP and iMessage for voice and SMS. You only need a data plan to use it. Only Sprint was willing to sign up for this revolution but Apple is producing the less revolutionary 4S for reluctant carriers. The idea is that Apple is hoping lots of people will flock to the carriers like Sprint that have the iPhone 5, forcing the other carriers to give in to Apple's demands.



    I would defect if this was the case. Hell I may defect anyway if Sprint is the only one with an iPhone 5.
  • Reply 146 of 180
    stelligentstelligent Posts: 2,680member
    Whatever, however this Sprint deal turns out to be, it punctuates one clear point - Apple is in the driver's seat of the mobile industry and steering it like no one else before it.
  • Reply 147 of 180
    conradjoeconradjoe Posts: 1,887member
    Quote:
    Originally Posted by mesomorphicman View Post


    Some are saying Sprint will get the new phone exclusively for 6 months before AT&T and Verizon. If true that worries me greatly, that's April. Does that mean their future iPhone release schedule will always be October-ish and not June/July?? If so, that stinks - to me!!! If I don't like this new phone I was hoping to get next years model next summer not next Autumn. I dont like late year phone releasing - This stinks (if true)!!!



    Boo Hoo.



    The release schedule is based on selling the most phones and making the most money possible. If they did this for Sprint (and I really doubt it, for many of the reasons others have given) then it was all well-calculated and will maximize Apple's realization of its goals.
  • Reply 148 of 180
    lamewinglamewing Posts: 742member
    Quote:
    Originally Posted by Tallest Skil View Post


    Not a single reason that you needed to quote the whole thing. Or any of it, for that matter.



    1. Don't be a dick. 2. If unsure, see rule 1.
  • Reply 149 of 180
    Quote:
    Originally Posted by ConradJoe View Post


    Boo Hoo.



    The release schedule is based on selling the most phones and making the most money possible. If they did this for Sprint (and I really doubt it, for many of the reasons others have given) then it was all well-calculated and will maximize Apple's realization of its goals.



    You're actually wrong. Although Apple never officially commented why this years phone was pushed back (I don't think they did) it was highly said that it was pushed back this year due to in part because of the Japan tsunami/earthquake and miscellaneous production problems. NOT because Steve Jobs thought to himself, "hmmm... October, we'll make more money and sell more phones if we release it just before Halloween than we would if we do it in July." You sound like one of those people if Apple decided to knock-down an orphanage in a low cost area to make office space, you'll say it was needed and they must do what they must to maximize profits. I like Apple, but I'm not a sycophant.
  • Reply 150 of 180
    nhtnht Posts: 4,522member
    Quote:
    Originally Posted by boeyc15 View Post


    Thats very possible. But again, Sprint WIMAX is different than Verizon/ATT LTE... so thats the out for 6 months. I have no proof one way or another, but can see the wimax coming out different timeframe than the LTE.



    I used to be a wimax sub and on good nights I get the same download speeds on my iPhone 4 via AT&T (evidently I live near a fast tower). Plus the wimax buildout is very sketchy...hence I'm an ex-wimax user.



    I can see Sprint getting their own iPhone 5 CDMA/wimax version but not a iPhone 5 exclusive. Perhaps Sprint has a low power CMDA/wimax chip that Apple has agreed to make a specialized iPhone 5 with for $20B. Then they can claim the "exclusive 4G iPhone" title until the LTE iPhone 6 comes out next year. Altair had a reasonably thrifty chip a couple years ago but it wasn't CDMA/WiMAX.



    If nothing else AT&T will get a HSPA+ iPhone 5 IMHO. Which AT&T claims is 4G...but isn't any more 4G than early LTE or WiMax. Still, if it gets anywhere close to 21 Mbps that's plenty fast.
  • Reply 151 of 180
    Quote:
    Originally Posted by cvaldes1831 View Post


    I can believe a purchase commitment of 1.9 million per quarter.



    I just think this exclusivity thing is baloney. Let's face it, for Sprint to lock exclusivity of the handset, they would basically need to guarantee any potential revenue loss from other carrier sales.



    They don't have the resources. How much revenue is Apple recording from handset sales each quarter? $13 billion? $15 billion? A number which is destined to climb?



    This exclusivity thing is a joke.



    I misunderstood. I agree this exclusivity deal is crazy talk riding into crazy town on a crazy horse.
  • Reply 152 of 180
    tbelltbell Posts: 3,146member
    I suspect it has more to do with software, then hardware. Apple's software team was finishing up OSX Lion right around the time iOS would normally be updated. The same team works on both. Presumably they's then switch focus on iOS 5.



    Further, it makes sense for an iOS update to come out around September as opposed to the beginning of Summer. The update would apply to all iOS devices going into the busy Christmas season. It might even have something to do with Apple managing adding carriers to the network.







    Quote:
    Originally Posted by solipsism View Post


    I can see how that could happen if they still aren't able to ramp up production of the iPhone 5 at this point. But then I have to wonder what the hell could the iPhone 5 have in that would require nearly 2 years from the iPhone 4 release before it can be released completely.



  • Reply 153 of 180
    tbelltbell Posts: 3,146member
    I have been saying that for a while. Apple benefits from there being as many carriers as possible. It increases it negotiation leverage. Since T-Mobile is a big question mark, it makes sense Apple will go with Sprint first.



    Quote:
    Originally Posted by cykz View Post


    Well I agree, but perhaps a duopoly does Apple no good...and they know that.



  • Reply 154 of 180
    tbelltbell Posts: 3,146member
    LOL. Summarized nicely.



    Quote:
    Originally Posted by cameronj View Post


    Yes, that would be great. Profitability plunges, stock price cut in half, and ATT and Verizon stop buying iPhones.



    You my friend are brilliant.



  • Reply 155 of 180
    wovelwovel Posts: 956member
    Quote:
    Originally Posted by cameronj View Post


    Because the deal, as stated, IS a bad deal for Apple.



    It'd make perfect sense for all parties if they dropped the exclusive bit, and that's why that's the true story.



    2 deals are stated, one confirmed by Sprint and WSJ is very, very good for apple. One is speculation and a lot of crap just made up over at BGR. I suggest you believe only one. I will let you choose.
  • Reply 156 of 180
    wovelwovel Posts: 956member
    Quote:
    Originally Posted by Doctor David View Post


    I misunderstood. I agree this exclusivity deal is crazy talk riding into crazy town on a crazy horse.





    Its ok because it was made up by crazy people trying to generate crazy hits. It has no basis in reality, crazy or otherwise.





    Why do people bother repeating anything BGR claims. They have never had an exclusive that proved to be true.
  • Reply 157 of 180
    tbelltbell Posts: 3,146member
    You might be right about the Japan ramifications. I think, however, it has more to do with managing earnings. Apple didn't need a new iPhone in July, as the bulk of AT&T people were one year into a two year contract. Apple instead brought Verizon on board with essentially the same phone, which sustained Apple's earnings. Now Apple is bringing Sprint on Board at a different time of the year then the other carriers. This will give Apple a big surge in Sprint users. Six months from now Apple will bring T-Mobile on board (it it is around). Getting people into two year contracts at different parts of the year sustains earnings in the future as well assuming these people keep getting iPhones in the future. Apple doesn't want a bunch of sales at one. It wants a bunch of sales spread out.



    Apple is very smart about timing product announcements to manage growth. Bringing all the carriers on at once wold make it hard for Apple to top itself next quarter.



    As stated earlier, it could be Apple couldn't get iOS 5 out the door in the new frame, as it was working on Lion.



    In reality, only Apple knows why the changed time frame. Many speculated that Apple would change the time frame iOS was updated to coincide with the release of the iPod Touch. Perhaps instead of moving just iOS, it decided to more the iPhone as well.





    Quote:
    Originally Posted by mesomorphicman View Post


    You're actually wrong. Although Apple never officially commented why this years phone was pushed back (I don't think they did) it was highly said that it was pushed back this year due to in part because of the Japan tsunami/earthquake and miscellaneous production problems. NOT because Steve Jobs thought to himself, "hmmm... October, we'll make more money and sell more phones if we release it just before Halloween than we would if we do it in July." You sound like one of those people if Apple decided to knock-down an orphanage in a low cost area to make office space, you'll say it was needed and they must do what they must to maximize profits. I like Apple, but I'm not a sycophant.



  • Reply 158 of 180
    patranuspatranus Posts: 366member
    Sprint is only worth $9.21 billion.



    If Apple was going to handicap itself by only offering the iPhone 5 on Sprint, they should just buy the company and roll out their own service.
  • Reply 159 of 180
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by Patranus View Post


    Sprint is only worth $9.21 billion.



    If Apple was going to handicap itself by only offering the iPhone 5 on Sprint, they should just buy the company and roll out their own service.



    Google Stocks has their market cap at $8.17 billion at end of day. How much revenue and profit are bringing in? (will look up later)
  • Reply 160 of 180
    ikolikol Posts: 369member
    Quote:
    Originally Posted by solipsism View Post


    I hope this is true because I've been camping out in front of my Sprint store for the last month.



    How do you use the bathroom or does that explain your disposition?
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