Disqus
The iPhone has kind of been a double-edged sword for carriers, as you need it to attract customers but the subsidies can really eat into margins. Sprint’s CEO Dan Hesse recently took a pay cut to offset the iPhone costs but he’s confident it will pay off. It may take a little while though.
In an interview with AllthingsD, Hesse said the $15.5 billion bet Sprint is making on the iPhone should prove profitable by 2015.
“We believe in the long term,” Hesse told AllthingsD. “And over time we will make more money on iPhone customers than we will on other customers.”
Now that AT&T, Verizon and Sprint all have the iPhone, Hesse’s company is hoping to stand out by offering Apple’s smartphone with an unlimited data plan. That could become an even more important selling factor, particularly if the next iPhone includes 4G LTE (as expected) and as other carriers continue to kill off unlimited plans.
Was this the right move by Sprint to bet on the iPhone?
[Via AllthingsD]
About The Author
Marin Perez
Marin Perez has torture tested cell phones and smartphones for industry leaders like CNET and InformationWeek. He remembers when 4G was just a screen on PowerPoint presentations and is fascinated with the amount of innovation out there. Marin has spent a lot of time with BlackBerry and Android but he finally broke down a bought an iPhone to see what all the hype's about. He also has too many tablets.
-
Anonymous
