Sprint iPhone Confirmation, $20-billion agreement is a gamble
Sprint is making the biggest decision of a lifetime, so much so they could potentially be betting the whole company on it. We are talking about the Sprint iPhone agreement, they will buy more than 30-million iPhones and spend committed to spend $20-billion in the process.
Thanks Wall Street Journal (WSJ) they confirm that Sprint Nextel Corp is getting its hands on the Apple iPhone, which surely means they will be getting the new iPhone 5 hopefully being announced tomorrow. This is a massive gamble that Sprint has to get right, get it wrong and they might as well kiss goodbye to its company.
If we talk about the figures this surely means that Sprint will not make a profit but will lose money for a least two years. Sprint Chief Executive Dan Hesse agrees that they would possibly lose money on the deal until 2014, he also mentions that Sprint would agree to buy at least 30.5 million iPhones over the next four years, which adds up to the $20 billion at current rates as said above.
Sprint would be subsidizing the cost of each phone to the tune of about $500 according to WSJ, all will be revealed tomorrow at the Apple event being held at Cupertino, California campus, stay with us tomorrow because we will have all the information.
We will not say too much today until we hear the official announcements tomorrow, Apple’s event kicks of at 10am Pacific Time, 6pm GMT London time, all will be revealed then.
Do you think Sprint will be ok, or do you think they are taking on a big commitment that is a gamble they really have to get right or go bust?
Please do let us know what you think about the above news, your comments are very important.