This Wednesday, the cellular company Sprint finally talked about its deal with Apple and that it has entered into a 4 year long contract to sell iPhones and the said deal is valued around $15.5 Billion.
Sprint which is the third largest cellular network in US, is expecting to gain long term benefits and results from this deal.Not much and specific details were revealed about the deal except that it will be lasted for four long years and is worth up to 15.5 billion dollars. Sprint also hoped that the iPhone-related revenue will recover the cost of the deal.
At the company’s third quarter earnings call, the CEO of Sprint Dan Hesse quipped, “We expect the lifetime value of a typical iPhone customer to be at least 50 percent – yes, at least 50 percent – greater than a typical smartphone user, driven primarily by more efficient use of our network and lower churn,”
The company is also expecting to sell over 1 Million iPhones in the fourth quarter of this year. Last year, during the same period, AT&T and Verizon (which were the only networks officially selling the iPhone 4) sold 2.7 Million and 2 Million iPhone handsets respectively. Sprint’s goal seems quite realistic and achievable but only time will tell as when it comes to choosing your network for iPhone, consumers prefer AT&T and Verizon over Sprint.
