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?