Sprint announces Q4 results: sells a pile of iPhones, loses money

[Poke]

No surprise here.

http://www.phonearena.com/news/Spri...s-sells-a-pile-of-iPhones-loses-money_id39557

 

[Poke]

Sprint sells 2.2 million iPhones in Q4 2012 but sheds 1 million customers, $1.3 billion

http://www.engadget.com/2013/02/07/sprint-q4-2012-financials/

 

[Ronnie-]

Had they not sold the iphones it would have been much worse.

The loss is mostly attributed to Sprint's Network Vision build-out, the closing of the Nextel network, as well as some damage done by Hurricane Sandy

 

[Ronnie-]

Sprint sells 2.2 million iPhones in Q4 2012 but sheds 1 million customers, $1.3 billion

http://www.engadget.com/2013/02/07/sprint-q4-2012-financials/

Most of the ones they lost were from the Nextel side. No real surprise there.

 

[mike123abc]

It is a case of corporate acquisition gone bad. Years of costs trying to convert Nextel...

 

[Neutron]

The hurricane sandy related costs should have been covered by insurance.

 

[mike123abc]

The hurricane sandy related costs should have been covered by insurance.

A lot of big companies self insure.

 

[mperdue]

A lot of big companies self insure.

Shame on them. They gambled and lost...

 

[mike123abc]

http://online.wsj.com/article/BT-CO-20130207-713369.html?mod=WSJ_qtoverview_wsjlatest

Meanwhile, Sprint's sales of the popular Apple Inc. (AAPL) iPhone rose to 2.2 million from 1.5 million last quarter. The latest model launched in late September to a supply shortage, so most initial sales came in the fourth quarter paired with traditional holiday sales.

Sprint reported 38% of its iPhones went to new customers, above the 30% reported by Verizon Wireless and 16% at AT&T Inc. (T). Verizon Wireless is a joint venture of Verizon Communications Inc. (VZ) and Vodafone Group PLC (VOD, VODPF, VOD.LN).

Mr. Hesse said Sprint has no plans to increase service rates and wouldn't consider doing so until it was in a stronger network position. Softbank hasn't detailed its plans for Sprint, but the company's rise in the Japanese mobile market was fueled by slashing prices to chase far larger rivals.

More new customers coming to Sprint for the iPhone than the other networks (percentage wise)

 

[Hart5150]

Don't worry, windows phone is on the way to Sprint. It'll will save them.

 

[Poke]

Don't worry, windows phone is on the way to Sprint. It'll will save them.

Will not hurt them thats for sure and they will not have to over pay for them as well.

 

[Peter Parker]

Sprint is desperately trying to increase market share. Even if they lose money on the sale of the phone they are trying to attract long term customers. I am tiring of the Iphone myself but I think that any major carrier without it is at a severe disadvantage.

Windows Phone does not attract the same rabid following (well OK maybe here it does). I suppose it is good to have it but I doubt that many would care enough to leave Sprint because of its absence.

 

[TheForce]

My travels last month to CES, I observe the people in the airport and if I add the ipad users and iphone users, that number easily outpaced all others, tablets and phones by 4 to 1. But we still look at the sales for future growth, not how many currently are using for whether the stock of Apple or Google is to be owned. Apple's rollback these past 5 months has enabled me to buy much more. Now it has room to grow. Google is running at all time highs and not a good idea to jump in now. Best to wait until it pulls back too assuming it continues to be a solid company.

I have some Sprint too and waiting for a another 35 cents to sell half my positions. I want to make at least a buck a share. Since iphone 5 buyers under subsidy represents a multiyear contract, the cost paid back to Apple is not an issue of loss but one of a good investment to gain subscribers. But, attracting the subscriber has to be done by competing service too. If Sprint can't get the LTE footprint, subscribers will just give AT&T and Verizon their 2 year contract. The iphone levels the playing field, it doesn't put them underwater. Churn and debt puts them under water not iphone subsidy.