IPhone 5 Exclusive on Sprint?

[Netherscourge]

My only question is this - $20 billion is NOTHING to AT&T and Verizon. Why didn't they jump into the ring and compete for exclusivity?


Unless, as I mentioned above, Apple was trying to send a message to AT&T and Verizon about ditching their unlimited plans...

Hmmmm.....

 

[Neutrino]

My only question is this - $20 billion is NOTHING to AT&T and Verizon. Why didn't they jump into the ring and compete for exclusivity?


Unless, as I mentioned above, Apple was trying to send a message to AT&T and Verizon about ditching their unlimited plans...

Hmmmm.....

20 billion is a lot to AT&T and Verizon. For that price, Sprint would have been better off allowing Apple to buy a majority/controlling share of Sprint.

 

[DrewBear]

Why would Sprint just go buy $20 billion worth of iPhone 5s if they weren't getting some sort of trade-off?

Not only are they paying $20B up front, they'd have to eat some of the iPhone 5's actual per-unit cost just to get people to buy it and sign up on their network.

That's a pretty huge gamble if they aren't getting something from Apple to make it worth it.

They are NOT paying $20B upfront. It is a 4 yr. contract to buy 30 million iPhones.

All the U.S. carriers are subsidizing the iPhone. AT&T and Verizon contract customers may pay $49-299 for their phones, but the carriers pay Apple an average of $655 for each iPhone.

This is a massive gamble. The WSJ story says that Sprint's subsidy may be $500. If that's true, maybe they're going to offer the iPhone for $149 with 2 yr. contract. Add unlimited data to that and Sprint could easily start to draw customers from the other carriers.

Sprint is in dire straits. Maybe Sprint had to offer them something like this to get Apple to make a Sprint iPhone. Apple is in negotiations with some pretty big carriers in China & Japan. There are limits to how fast they can increase manufacturing capacity.

 

[Netherscourge]

They are NOT paying $20B upfront. It is a 4 yr. contract to buy 30 million iPhones.

All the U.S. carriers are subsidizing the iPhone. AT&T and Verizon contract customers may pay $49-299 for their phones, but the carriers pay Apple an average of $655 for each iPhone.

This is a massive gamble. The WSJ story says that Sprint's subsidy may be $500. If that's true, maybe they're going to offer the iPhone for $149 with 2 yr. contract. Add unlimited data to that and Sprint could easily start to draw customers from the other carriers.

Sprint is in dire straits. Maybe Sprint had to offer them something like this to get Apple to make a Sprint iPhone. Apple is in negotiations with some pretty big carriers in China & Japan. There are limits to how fast they can increase manufacturing capacity.

Well, if it's Sprint exclusive, and they offer their Unlimited Everything plan alongside it, they're going to do well so long as the network itself doesn't explode.

 

[DreamOutLoud65]

Well, if it's Sprint exclusive, and they offer their Unlimited Everything plan alongside it, they're going to do well so long as the network itself doesn't explode.

this..


hopefully it won't .. we will see what Sprint says on friday at their event.

 

[Premium1]

They are NOT paying $20B upfront. It is a 4 yr. contract to buy 30 million iPhones.

All the U.S. carriers are subsidizing the iPhone. AT&T and Verizon contract customers may pay $49-299 for their phones, but the carriers pay Apple an average of $655 for each iPhone.

This is a massive gamble. The WSJ story says that Sprint's subsidy may be $500. If that's true, maybe they're going to offer the iPhone for $149 with 2 yr. contract. Add unlimited data to that and Sprint could easily start to draw customers from the other carriers.

Sprint is in dire straits. Maybe Sprint had to offer them something like this to get Apple to make a Sprint iPhone. Apple is in negotiations with some pretty big carriers in China & Japan. There are limits to how fast they can increase manufacturing capacity.

I think this could make people switch from tmo since some may not want to get stuck if the merger goes through. Also since verizon and at&t grandfather many in to unlimited data most do not want to give that up for sprint's sub par network coverage in many areas. The thing is that even if it is exclusive until early next year I could see lots of people just waiting to get the lte version on at&t or verizon. Why make the sprint version wimax when they are not developing that and moving to lte early next year? Doesn't make sense to me.

 

[Jellotime91]

this..


hopefully it won't .. we will see what Sprint says on friday at their event.

Apple is definitely going to be the one to unveil the iPhone on Sprint... Apple likes to make those announcements themselves. Sprint, however, will be the one to discuss the specific plans available, of course.

 

[tcseacliff]

I know at&t got the first gen's,but on the same hand the AT&T customers did all the heavy lifting to get apple to this point, so where does this leave the at&t customers who hung in with the ipnone from the beginning? will they see the 5?

 

[Premium1]

I know at&t got the first gen's,but on the same hand the AT&T customers did all the heavy lifting to get apple to this point, so where does this leave the at&t customers who hung in with the ipnone from the beginning? will they see the 5?

I agree. Not to mention look how many i4's verizon sold after it had been out for months and that was with many still waiting for the new i5. I think apple would not throw at&t and verizon customers under the bus like this. They are about making money and you can see various polls showing how many would buy an i5 and how drastically it decreases if it is just a 4s.

 

[anon(4698833)]

There is way...WAY...too much legitimacy being put into conversations about this bogus rumor...lol.

 

[cking1786]

I guess my question to AT&T, Verizon customers is this; if Sprint were to get an exclusive deal on the iPhone 5 until Jan 1 (or whatever the timeframe may be), would you not buy the iPhone 5 because you feel slighted because Apple and Sprint worked out a deal that essentially gives them a 3 month head start on sales?

 

[tcseacliff]

I agree. Not to mention look how many i4's verizon sold after it had been out for months and that was with many still waiting for the new i5. I think apple would not throw at&t and verizon customers under the bus like this. They are about making money and you can see various polls showing how many would buy an i5 and how drastically it decreases if it is just a 4s.

if they keep messing with them, android will welcome them with open arms(galaxysII anyone? I can only hold them from jumping ship for so long.(my family)

 

[Premium1]

if they keep messing with them, android will welcome them with open arms(galaxysII anyone? I can only hold them from jumping ship for so long.(my family)

I agree I mean people arent going to wait around forever when there are other very good options out there.

 

[Neutrino]

I agree I mean people arent going to wait around forever when there are other very good options out there.

Very true. Nexus Prime with LTE looks like an exciting alternative. Not iOS and the Apple ecosystem. That is a big fail for me.


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[Neutrino]

@boygenius: The craziest iPhone rumor ever... https://t.co/StMEXw4x

Some background on BG's thinking.


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[Snipperdo17]

if true, I've never been happier to be a Sprint customer with an upgrade haha

 

[DrewBear]

if they keep messing with them, android will welcome them with open arms(galaxysII anyone? I can only hold them from jumping ship for so long.(my family)

No need to hold anyone back. You should encourage your family to buy S2s or Primes. The smartphone market is big enough to keep Apple and all the Android makers very busy for years to come. I know Apple is going to have a hard time making iPhones fast enough to meet demand for the next few months. Save your family the trouble of waiting for a new iPhone.

Remember also that the product life for smartphones is much shorter than other consumer electronic products like computers, TVs, game consoles, etc. People buy new smartphones every 2-3 yrs. All the manufacturers will need to build close to half a billion smartphones next year. In a couple of years people will be spending more money buying smartphones and tablets than desktops and laptops.

Edit: BTW, if we find out in a few days that this Sprint deal is real, how will any of you who think Apple is slacking explain why Sprint would risk $20 billion on the iPhone? Why don't they think they can turn their business around with the SGS2 (Epic 4G) and all the ICS Android phones that are coming soon?

Some of you keep harping on how the iPhone is tired, lacking in innovation, getting left in the dust by all the great Android phones arriving every month. Yet both consumers and the cell carriers are practically begging Apple to give them iPhones. Money talks. Follow the money.

 

[kch50428]

WSJ: The new iPhone won’t support Sprint’s 4G WiMax network | 9to5Mac | Apple Intelligence

 

[BIG CAT 7]

I don't think that Apple would have a single phone "Exclusive" to one carrier. They were Exclusively with AT&T and then are starting to branch out to different carriers. Why would they create an Exclusive phone for just one carrier when they can go across the board and make a killing with the phone. Doesn't make any sense to me and I highly doubt this will happen.

They will make a lot of people very upset if they did this as well and I don't think that's what they want right now...

 

[Jeremy]

I don't think that Apple would have a single phone "Exclusive" to one carrier. They were Exclusively with AT&T and then are starting to branch out to different carriers. Why would they create an Exclusive phone for just one carrier when they can go across the board and make a killing with the phone. Doesn't make any sense to me and I highly doubt this will happen.

They will make a lot of people very upset if they did this as well and I don't think that's what they want right now...

BINGO. And if it is an exclusive phone, Sprint will be getting the cheaper phone (perhaps 8GB device) off the bat.