WSJ: Sprint Bets $20 Billion on New iPhone

October 3, 2011 -

The third largest wireless carrier in the United States is betting on the iPhone 5 in a big way. Sprint Nextel Corp. will pay Apple a whopping $20 billion dollars to give its customers access to iPhone 5, according to the Wall Street Journal. The company's top executive told Sprint's board that he expects to lose money on the deal until sometime in 2014.

He also reportedly said that the deal would require them to purchase at least 30.5 million iPhones over the next four years, according to a source familiar with the company. That's where that $20 billion dollar figure comes from.

According to the same insider source, board members seemed worried that the wait for the payoff in this deal was too long, and that the deal might outlast the iPhone's popularity.

"This is a bet-the-company kind of thing,'' a person familiar with Sprint's decision-making told the WSJ. He or she described the impact to the company's financials as "staggering." Whether the deal is bad or not, the Board of Directors ended up signing off on it and here we are.

Apple is expected to unveil its newest iPhone at its Cupertino, California event tomorrow. Sprint is expected to announce their plans to carry the device later in the week.

One advantage Sprint has over its competitors is that it still offers unlimited data plans. One would assume that such data plans would be available to new iPhone customers as well.

Source: WSJ

Image provided by ShutterStock. All rights reserved.


Comments

Re: WSJ: Sprint Bets $20 Billion on New iPhone

All they got was IPhone 4S and somehow they are supposed to sell it when the IPhone 5 could be right around the corner like the 3GS and how the Iphone 4 came out months later

 
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Andrew EisenMP - I love that games but damn my squadmates are bozos.09/21/2014 - 10:05pm
MaskedPixelanteSWAT teams should be banned until they; 1. Learn not to walk into enemy fire, 2. Learn to throw the flashbang INTO the doorway, not the frame and 3. Stop complaining that I'm in their way.09/21/2014 - 9:53pm
Craig R.I'm getting of the opinion that SWAT teams nationwide should be banned. This probably isn't even the most absurd situation in which they've been used.09/21/2014 - 9:26pm
Andrew EisenAnd, predictably, it encouraged more parody accounts, having the exact opposite effect than what was intended.09/21/2014 - 7:07pm
E. Zachary KnightThis is called a police state people. When public officials can send SWAT raids after anyone for any offense, we are no longer free.09/21/2014 - 6:41pm
E. Zachary KnightJudge rules SWAT raid tageting parody Twitter account was justified. http://www.theguardian.com/world/2014/sep/19/illinois-judge-swat-raid-parody-twitter-peoria-mayor09/21/2014 - 6:41pm
MechaTama31quik: But even if it did break, at worst it is only as bad as the powder. Even that is assuming that it is dangerous through skin contact, which is not a given if its delivery vehicle is a syringe.09/21/2014 - 4:30pm
MaskedPixelantehttp://www.forbes.com/sites/insertcoin/2014/09/20/isis-uses-gta-5-in-new-teen-recruitment-video/09/21/2014 - 4:25pm
quiknkoldSyringes can break. And in a transcontinental delivery, the glass could've broken when crushed. I work in a mail center. Shit like this is super serious09/21/2014 - 3:25pm
E. Zachary KnightIt doesn't matter what is inside the needle. As long as it requires him to take the step of purposefully injecting himself, the threat of the substance is as close to zero as you can get.09/21/2014 - 1:27pm
quiknkoldEzach: I'm not talking about the needle. I'm talking about what's inside. Geeze. Depending on what it is, the sender could be guilty of bioterrorism.09/21/2014 - 12:51pm
E. Zachary Knightquiknkold, No. That syringe is not worse than white powder or a bomb. The syringe requires the recipient to actually inject themselves. Not true for other mail threats.09/21/2014 - 12:49pm
Andrew EisenThe closest to a threat I ever received was a handwritten note slipped under my door that read "I KNOW it was you." Still no idea what that was about. I think the author must have got the wrong apartment.09/21/2014 - 12:28pm
InfophileThat's what they call it? I always called it hydroxic acid...09/21/2014 - 11:57am
MaskedPixelanteProbably dihydrogen monoxide, the most dangerous substance in the universe.09/21/2014 - 10:14am
james_fudgewell I hope he called the police so they can let us all know.09/21/2014 - 9:07am
quiknkoldIt's pretty gnarly. Depending on what it is, it could be worse than white powder or a fake bomb.09/21/2014 - 9:06am
james_fudgeI just looked it up on UPS.com09/21/2014 - 8:56am
james_fudgeand expensive for an American to ship to London.09/21/2014 - 8:55am
E. Zachary KnightThat is pretty scary. Would have been worse if it were a fake bomb or white powder.09/21/2014 - 8:49am
 

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