Sprint says iPhone most network-efficient smartphone and "worth every penny"

Posted:
in iPhone edited January 2014
Sprint's top executive said this week that Apple's new iPhone is its most network-efficient smartphone, using some 50% less data than comparable Android handsets.



Speaking during the carrier's third-quarter conference call Wednesday, Sprint chief executive Dan Hesse said the company's four-year subsidy-driven bid to carry the iPhone was "worth every penny," with preliminary reports indicating that the handset uses significantly less data than other smartphones, allowing the company to retain its unlimited 3G data plans.



In order to carry the iPhone, the nation's third-largest carrier is reported to be paying 40% more than the industry average in subsidies, translating to $200 per device, in a $20 billion four-year deal with Apple.



Hesse noted during the call that since Sprint began selling the device on Oct. 14, it has attracted customers at a rate higher than any smartphone in Sprint's history, exceeding even the company's own expectations.



?Our early results selling the iPhone and iPhone 4 confirm the iPhone?s ability to attract new customers,? Hesse said.



Despite the swelling demand for Apple's handset, Hesse noted that the phone is not likely to overburden the carrier's network, going on to say that load may actually be reduced due to the device's efficient use of data, which will allow the carrier to extend its unlimited 3G data plan.



?One of the beauties of carrying the iPhone is it extends the period of time and increases the likelihood of us maintaining unlimited data longer because it uses our network so efficiently,? Hesse told Forbes in a post-earnings call interview.



Steve Elfman, Sprint's president of network operations and wholesale, explains that the Apple's multi-year experience in handling handset optimizations -- offloading data usage to WiFi along with a host of app and content tweaks -- makes the iPhone "quite efficient in comparison to other devices."



While the iPhone may sip data in comparison to other smartphones, speed is another story as the new iPhone 4S has been optimized for AT&T's GSM 3G HSDPA protocol, being reportedly faster than Sprint or Verizon's networks that use CDMA 3G EV-DO technology.



In a recent report, AppleInsider found that Sprint's 3G service on the 4S was nearly unusable in both San Francisco and Los Angeles.



Nevertheless, Sprint expects the availability of Apple's handset models to boost revenue by $7 to $8 billion, due to high product demand and the fact that iPhone users typically pay more per month for service.







Hesse commented earlier this year that the carrier's inability to sell the iPhone was one of the biggest reasons Sprint subscribers left and why potential customers weren't choosing to sign up.



The company posted a net loss of $301 million on a revenue of $8.33 billion for the quarter ending Sept. 30, but was up $180 million year-to-year.

«1

Comments

  • Reply 1 of 31
    nasseraenasserae Posts: 3,167member
    Quote:

    In order to carry the iPhone, the nation's third-largest carrier is reported to be paying 40% more than the industry average in subsidies, translating to $200 per device, in a $20 billion four-year deal with Apple.



    You might want to recheck this number. The original Forbes article says $15.5B and 6M iPhones/year over 4 year.



    Based on these numbers, they are paying an average of $645 ($15.5BN / (4 year x 6M iPhones per year) = 645 per iPhone), which is the price of an unlocked iPhone. If they are paying $200 more than industry average, which most likely means Android, then Android OEM are getting around $445 per device. No wonder T-Mobile did not get the iPhone.
  • Reply 2 of 31
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by AppleInsider View Post


    Speaking during the carrier's third-quarter conference call Wednesday, Sprint chief executive Dan Hesse said the company's four-year subsidy-driven bid to carry the iPhone was "worth every penny," with preliminary reports indicating that the handset uses significantly less data than other smartphones, allowing the company to retain its unlimited 3G data plans.



    Maybe Sprint users will understand that Unlimited data was and is always at risk of going away like with the other carriers.
  • Reply 3 of 31
    Maybe Sprint should kick those Android smartphones from its network and solely run iPhones and 3G iPads. Or at least encourage current Android smartphone users to switch with some sort of incentive offered.
  • Reply 4 of 31
    And they reached that conclusion in less than a month of selling the iPhone? Oh yeah, I totally believe Sprint now...
  • Reply 5 of 31
    77 pages of iphone user complaints about Sprint data speeds



    http://community.sprint.com/baw/thread/78766
  • Reply 6 of 31
    Quote:

    Sprint's top executive said this week that Apple's new iPhone is its most network-efficient smartphone, using some 50% less data than comparable Android handsets.




    Quote:

    Despite the swelling demand for Apple's handset, Hesse noted that the phone is not likely to overburden the carrier's network, going on to say that load may actually be reduced due to the device's efficient use of data, which will allow the carrier to extend its unlimited 3G data plan.



    So, see if I have this straight. If iPhone uses 50% data and network loads may be "actually reduced" then why is AT&T scraping their unlimited data plans? Didn't they say iPhone users were the heaviest users and that their network was getting clogged because of them?



    Are you lying to me again AT&T?
  • Reply 7 of 31
    Quote:
    Originally Posted by King of Beige View Post


    So, see if I have this straight. If iPhone uses 50% data and network loads may be "actually reduced" then why is AT&T scraping their unlimited data plans? Didn't they say iPhone users were the heaviest users and that their network was getting clogged because of them?



    Are you lying to me again AT&T?



    No, that's Sprint lying to you.



    With the awful iPhone speeds of course they're going to see 50% data usage from them.
  • Reply 8 of 31
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by King of Beige View Post


    So, see if I have this straight. If iPhone uses 50% data and network loads may be "actually reduced" then why is AT&T scraping their unlimited data plans? Didn't they say iPhone users were the heaviest users and that their network was getting clogged because of them?



    Are you lying to me again AT&T?



    A few things:
    1. AT&T and Verizon have many more smartphones users than Sprint. Once they get to certain saturation point they'll end new Unlimited plans, too. All they elluded to was that it will happen later than sooner.

    2. In December 2010 there were reports of the iPhone pinging the towers way too often, thus causign congestion. I think the story originally came from T-Mo in Germany or O2 in the UK. Anyway, the word is Apple learned what was wrong and made the iPhone considerably more efficient since about iOS 4.2(?).

    3. The complaints about the slow iPhone speeds at Sprint could be a huge factor in why the data usage seems exceptionally lower than expected.

  • Reply 9 of 31
    I on Verizon and will stay with them, cause of all the ATT bad reports from my ATT friend...



    As I was passing my local Sprint store, I walked in to play with Siri for a few minutes... Siri couldn't find the Network, I think that was Siri's wording... Otherwise I was browsing with Safari on that 4S!



    So I mentioned that to Sprint's Rep who was at a desk a few feet away, greeting people as they walked into the store... That rep's response:



    I don't anything about that phone and his whole posture was:



    I am busy playing with my Android, why are you bothering me?



    I chose to leave, instead of going to the Supervisor to complain! On that block there are 3 stores: Sprint, T-Mobile and ATT, and on the next block it's Verizon... Sprint and T-Mobile usually win "the sad place prize", in my opinion... The VZ store seems to have more Substance, and not just cause it's bigger than ATT's...



    Luckily, we have Apple Care and Apple Stores to help us with iPhone, iPads and Macs of course, even though they are swamped. But, with Androids, God Help Those Customers!!! It's a poorly masked Chaos, Hear Say Kingdom of Don't Call Us We Shall Not Call You! All those stores just want to activate a New Contract, get their Commission Brownie Points, and go on to the Next Customer!!!



    THIS I GREAT:



    Forrester: 'It's time to repeal prohibition' on Macs in the enterprise http://j.mp/s8nrdZ



    BUT...



    Even if Apple doubles or Triples their Tech Support Stuff, it wouldn't be nearly enough... They are just swamped... Before the iPhone 4S Wave cools off, there will be iPad 3, then iPhone 5, maybe Apple TV - The No Longer A Hobby Product, and Next Form Factor of Macbooks....



    Still, there are much better chances of getting Help from Apple than from Planet Android... As I've always said:



    It's The Support, Stupid!!!



    The others can flaunt their Android 4G LTE Specs, but, given "It's The Support, Stupid!!!" - who cares, plus there LTE coverage is limited and not reliable from what I've heard!!! Thus, no wonder Apple decided to wait on 4G LTE till Cell Providers get their act together!!! What's the point of having a race car, so that it looks better in a bumper to bumper traffic on bumpy roads of 3G, or maybe even 2G Speeds!? Ha ha ha !!!!!



    Can't wait for my 4S, 64 GB, Black next months! Hopefully it's less than 10 Days wait, since Verizon is chronically sold out!!! Wouldn't everyone love that kind of "failure"!!!



    Go Apple! Go AAPL!!!
  • Reply 10 of 31
    macrulezmacrulez Posts: 2,455member
    deleted
  • Reply 11 of 31
    Quote:
    Originally Posted by MacRulez View Post


    I guess that explains the low data usage.



    Exactly what I was thinking. 0.05mb speeds don't make anyone happy
  • Reply 12 of 31
    Go Sprint! I wish them the best. I had Sprint before they merged with Nextel. Loved them, best customer service, but after the merger they lost their edge. However the iPhone was really the only reason I left them, side benefit, in my area AT&T coverage is much better than Sprint's. I hope they get their edge back and increase their coverage, their prices were better than AT&T and Verizon in my area.
  • Reply 13 of 31
    christophbchristophb Posts: 1,482member
    Quote:
    Originally Posted by MaroonMushroom View Post


    77 pages of iphone user complaints about Sprint data speeds



    http://community.sprint.com/baw/thread/78766



    Wonder if Apple is pissed. Gonna give their product a bad name. Wonder who takes the hit when customers return en masse.
  • Reply 14 of 31
    well here is what I have to say on the subject...I know a bunch of people that have Sprint service and had been dying to have the iPhone...



    AND NOT ONE OF THEM IS COMPLAINING ABOUT THE PHONE OR SERVICE!!!



    that is a fact...they are so happy that they don't have to put up with those pathetic, useless and downright crappy ass Android or BB phones anymore...



    think about it...what kind of network speed could they have had before??? NADA???



    it will get better and as Sprint has the phone longer Apple will send out updates that will make things smoother...



    and to that person that asked if ATT has been lying to them again...YES...all they do is lie



    as Erin Brocovich said "That's all you got lady. Two wrong feet in f*cking ugly shoes"



    that is ATT...I hate them...oh I have to go pay my bill...let the RAPE begin
  • Reply 15 of 31
    tylerk36tylerk36 Posts: 1,037member
    On the other hand People are saying that Sprint's network isn't the most efficient. Or maybe they are saying Sprint just plain sucks! Who would wanna trust Sprint. Maybe a cockroach.
  • Reply 16 of 31
    tbelltbell Posts: 3,146member
    The reality is people going from AT&T to Sprint or Verizon are going to notice a speed reduction. The new iPhone is 4G on AT&T and AT&T's strength has always been data.



    Verizon and maybe even Sprint kick AT&T in voice call reliability, but AT&T has the fastest data speeds (in most areas).



    Many people complaining on Sprint acknowledge being AT&T switchers. If you are going from a Sprint phone to an iPhone the speed is going to be the same or faster in most areas.



    The only way I'd go to Sprint for an iPhone 4S is if 1) I am already on the Sprint network, 2) it is my first Smartphone, 3) I mostly use wi-fi, or 4) I just hate AT&T so much I am willing to put up with slower data speeds. .



    Quote:
    Originally Posted by MacRulez View Post


    I guess that explains the low data usage.



  • Reply 17 of 31
    Quote:
    Originally Posted by ChristophB View Post


    Wonder if Apple is pissed. Gonna give their product a bad name. Wonder who takes the hit when customers return en masse.



    Well, Apple has refined their product to the stage where we know Apple is delivering some of the best hardware out there. Especially with the iPhone 4S now. Superb reception, no death-grip problems whatsoever.



    With multiple carriers around the world on all sorts of frequencies, including multiple 3G frequencies (some on 2100mhz, some on 850, etc. etc.), and now with CDMA, the data that comes back clearly points to the carriers being the "weak points".



    People may get pissed at Apple but as they change between carriers or travel to different countries, the bottom line is clear. The iPhone 3GS, iPhone 4 and iPhone 4S are pretty solid phones with decent software in comparison to the market.



    The onus is on the telcos.



    Where I am in Australia now, on my iPhone4 and iPhone4S I have travelled in a lot of different locations up to 30km from the city CBD and it has literally never dropped to 2G, even indoors. It's on a long-established carrier which has rolled out a new 850mhz 3G network over the past few years.



    It's the telcos people, they've been sitting on their butts for a long time, but just like in so many industries, Apple comes a long and shoves a huge wake-up stick up their...
  • Reply 18 of 31
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by TBell View Post


    The reality is people going from AT&T to Sprint or Verizon are going to notice a speed reduction. The new iPhone is 4G on AT&T and AT&T's strength has always been data.



    I personally wouldn't call it 4G since it's only HSDPA, not HSPA+. It's looking like next year's iPhone will have HSPA+ and LTE which tells me it will be called iPhone 4G for marketing.
  • Reply 19 of 31
    asciiascii Posts: 5,936member
    I guess iPhone has the most apps, so people use those instead of web browser, and apps are more efficient. Or the excellent antenna design means less retransmission.



    Or maybe as people have said there is something wrong with the carrier's network, an incompatibility or configuration problem that is artificially throttling the phone causing the businesspeople to celebrate prematurely.
  • Reply 20 of 31
    Here's my question: if it's true that Dan Hesse said the iPhone "uses significantly less data than other smartphones" either he's lying or AT&T and Verizon are lying about the amount of data the iPhone uses, according to AT&T and Verizon they claimed they had to do away with unlimited date because the iPhone used the most data compaired to all other smartphones.
Sign In or Register to comment.