Sprint's Upcoming Phone Lineup: It Has to Do Better than That 24 comments
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Call notes on upcoming phones from Sprint (S). Wow what a roster of truly mediocre phones. Their Android phones look heavily dominated by HTC which makes phones with great specs but they almost always feel tacky and flimsy (I rarely return gadgets---but I returned the first HTC phone I had).
Sprint needs its own version of a Motorola (MOT) Droid, or it needs a large screen Palm (PALM) device, ideally both. If the IPhone is coming to Verizon (VZ), there is no reason it can't go to Sprint too.
What is the deal with Sprint handset-wise? Either Verizon out-competes them for exclusivity on these phones or they are just very bad at picking phones. It feels like it was perhaps 5 years ago where Sprint was a monster in getting a great phone line up. Having cruddy handsets just kills subscribers.
This reminds me of that famous Smokey Robinson song about Sprint, "Tears of a Clown: When No Subscribers are Around".
The other big problem is they are the only big carrier going Wimax. Wimax was a fine option 2 years ago when capital was so cheap but when capital goes tight, standards tend to coalesce and I think that's LTE. It's a bit of a difficult spot and I don't think it's a result of bad strategic decisions making, just bad luck. I've heard various stories saying that Sprint has built its network so that if it needs to switch to LTE, it's just a software change (hard to believe given different air interface propagation patterns but whatever).
Please someone from Sprint tell me you have something more than this.
Disclosure: Believe it or not I am Long Common, and Long Puts at the $3 Strike. It's basically a bet that they won't go out of business. Long MOT, GOOG.
Via GearLog:
- Google (GOOG) Android OS updates are coming for the HTC Hero and Samsung Moment. While he didn't specify a version - 1.6 or 2.0 - HTC has previously confirmed that they're working on an Android 2.0 update for the Hero.
- Combination CDMA/GSM Android phones are also "a possibility but nothing this year."
- They're considering an Android phone with a built-in MiFi-type router.
- Android phones will get less expensive "as we see volume across the industry."
- Lots of HTC and BlackBerry phones coming next year. HTC phones "will be on the Android platform."
- Sprint will "add Wi-Fi to [the BlackBerry] Tour" and have other Wi-Fi BlackBerries going forward.
- They're testing Windows Mobile 6.5 updates for the HTC Touch Pro2 and other Windows phones; "plan for early 2010."
- They want Windows Mobile 7.0 "as soon as possible, but dependent on Microsoft (MSFT)."
- Expect WiMAX phones next year.
- No tethering for phones that require Everything plans (such as all smartphones) from here on out.
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This article has 24 comments:
Why dont they have the equivalent of Verizon Imagio and Droid?
Where is HTC HD2?
Why the pathetic Samsung Moment to compete with Droid?
FIRE THE INCOMPETENTS IN CHARGE OF PHONE SELECTION
And by the way.. Pre is useless.
Look, Hesse has been in place 2 years plus...and S just keeps going down the tubes.
I wonder at a company that pays their own execs at 118% of target for their quarterly bonus at the same time that the stock flatlines and churn increases.
Sprint is rapidly approaching the point where their spectrum holdings are their only real asset.
Handsets? Read some daily reports like Gizmodo or Engadget...you
On Oct 30 11:14 AM Alphadog2 wrote:
> Hard to find Sprint Fanboys these days....
>
> Look, Hesse has been in place 2 years plus...and S just keeps going
> down the tubes.
>
> I wonder at a company that pays their own execs at 118% of target
> for their quarterly bonus at the same time that the stock flatlines
> and churn increases.
>
> Sprint is rapidly approaching the point where their spectrum holdings
> are their only real asset.
>
> Handsets? Read some daily reports like Gizmodo or Engadget...you
Total Liquidity: $7.5 billion ($5.9 in cash, $1.6 LOC)
YTD Free Cash Flow $2.1 billion, Q3 $864 million
(this is including their pension contribution)
Only carrier with a 4G platform
Twice the 3G coverage of ATT
14 times the coverage of T-Mobile
This Quarter they will have the best line-up of Smartphones.
(Palm Pre & Pixi, HTC Hero & Samsung Moment, Tour etc.)
As of todays trading they have a Market Cap of $8.5 Billion. This means Sprint could essentially buyout all its own shares with its current cash position. The only thing lacking at Sprint was a decent line-up of Smart phones and that has been fully addressed. At these prices Sprint should buy out its own shares. Its current cash flow could easily manage its debt maturities. In 2010 the only Non-Revolving debt that will be maturing is for $750 million which is due on 6/28/2010.
Sprint's spectrum holding could fetch more than $20 billion on the free market, which would easily payoff all its debts. Just food for thought for those of you that don't have the vision to see what is happening.
Sprint has HTC Touchpro2 but they dont even put it out on display
you have to ASK to even see it
Why doesnt Sprint have the HTC Imagio.. the phone I want?
Pre is LAME and going NOWHERE
I am a subscriber and shareholder but I wont be for much longer if they dont
start getting competitive with their phone lineup
The issue here is not that any specific phone is lacking - rather, that Sprint has been unable to capture attention and additional market share with their offerings.
The Pre was by far their best opportunity...and at their January CES announcement the buzz was outstanding. THey have to deliver the complete package. Same issue came with the Instinct - Hesse proudly promoted it as an iPhone beater...then Sprint launched it against the 3G iPhone and was lost in the background.
I'd love to see them succeed, but "the market" clearly sees a different outcome with their continuing decline in stock price.
On Oct 30 11:32 AM Annoyed wrote:
> You mean like the one dated 10/20/09 gizmodo.com/5361245/sp...
> - giving high marks fo rhte HTC? Or are your referrign to the blogs
> bashing ATT and Verizon?
The facts are that Sprint has been in decline since Sprint Corp re-absorbed them back in 2001 (?) and put their wireline folks in control. Nextel merger simply sealed the casket. A bad deal for all involved.
Sprint doesn't have enough buying power to make multiple bets and promotions on their handset choices. Even with a "winner" like the Hero, you need significant media investment for your distribution channels to drive the sales.
On Oct 30 02:41 PM Alphadog2 wrote:
> try the one referring to the Pixie as overpriced and underwhelming...or
> the one referring to the interface on the Hero as too slow.
>
> The issue here is not that any specific phone is lacking - rather,
> that Sprint has been unable to capture attention and additional market
> share with their offerings.
>
> The Pre was by far their best opportunity...and at their January
> CES announcement the buzz was outstanding. THey have to deliver
> the complete package. Same issue came with the Instinct - Hesse
> proudly promoted it as an iPhone beater...then Sprint launched it
> against the 3G iPhone and was lost in the background.
>
> I'd love to see them succeed, but "the market" clearly sees a different
> outcome with their continuing decline in stock price.
>
> On Oct 30 11:32 AM Annoyed wrote:
They are prohibited from repurchasing their debt at a discount (Hesse said as much in an employee Q and A), and are extremely limited on how they use their debt funded cash.
We can respectfully disagree...that's what makes the market efficient. An unbundled Sprint is worth far more than the pieces together. Unfortunately, it's very difficult to pull them apart.
On Oct 30 12:51 PM Aryamehr wrote:
> Sprint's facts:
>
> Total Liquidity: $7.5 billion ($5.9 in cash, $1.6 LOC)
> YTD Free Cash Flow $2.1 billion, Q3 $864 million
> (this is including their pension contribution)
>
> Only carrier with a 4G platform
> Twice the 3G coverage of ATT
> 14 times the coverage of T-Mobile
> This Quarter they will have the best line-up of Smartphones.
> (Palm Pre & Pixi, HTC Hero & Samsung Moment, Tour etc.)<br/>
>
> As of todays trading they have a Market Cap of $8.5 Billion. This
> means Sprint could essentially buyout all its own shares with its
> current cash position. The only thing lacking at Sprint was a decent
> line-up of Smart phones and that has been fully addressed. At these
> prices Sprint should buy out its own shares. Its current cash flow
> could easily manage its debt maturities. In 2010 the only Non-Revolving
> debt that will be maturing is for $750 million which is due on 6/28/2010.
>
>
> Sprint's spectrum holding could fetch more than $20 billion on the
> free market, which would easily payoff all its debts. Just food
> for thought for those of you that don't have the vision to see what
> is happening.
On Oct 30 02:44 PM Aryamehr wrote:
> Six months ago Sprint had nothing! And I mean nothing, that is why
> their Q3 results look so lame. Three months ago they had the Pre,
> thats why their results improved, this quarter they will have numerous
> phones, the Pre, Pixi, Moment, Hero, Tour and the TouchPro2, mind
> you most of these phones will only be available in the mid quarter.
> Next quarter they will be the only carrier with a dual platform,
> 3G/4G, smartphone which will be included on the 2nd iteration of
> their Palm Pre. Give them a break, they have gone from nothing to
> a pretty impressive line-up that is only improving. As I have mentioned,
> with 17 cities already covered with 4G going on to over 25 within
> the next 6 weeks, Sprint should be ensconced to pretty well to fully
> meet its goal of having a ubiquitous 4G platform by the end of 2010.
> They have the warchest ($5.9 Billion in cash with a $1.6 Billion
> LOC) and they have laid down the right seeds for turning the trajectory
> of their business around. All they need is a little time, and I
> mean only a little time.
On Oct 30 12:51 PM Aryamehr wrote:
> Sprint's facts:
>
> Total Liquidity: $7.5 billion ($5.9 in cash, $1.6 LOC)
> YTD Free Cash Flow $2.1 billion, Q3 $864 million
> (this is including their pension contribution)
>
> Only carrier with a 4G platform
> Twice the 3G coverage of ATT
> 14 times the coverage of T-Mobile
> This Quarter they will have the best line-up of Smartphones.
> (Palm Pre & Pixi, HTC Hero & Samsung Moment, Tour etc.)<br/>
>
> As of todays trading they have a Market Cap of $8.5 Billion. This
> means Sprint could essentially buyout all its own shares with its
> current cash position. The only thing lacking at Sprint was a decent
> line-up of Smart phones and that has been fully addressed. At these
> prices Sprint should buy out its own shares. Its current cash flow
> could easily manage its debt maturities. In 2010 the only Non-Revolving
> debt that will be maturing is for $750 million which is due on 6/28/2010.
>
>
> Sprint's spectrum holding could fetch more than $20 billion on the
> free market, which would easily payoff all its debts. Just food for
> thought for those of you that don't have the vision to see what is
> happening.
S and TMobile have nothing going for them, even if they are executing, because, right or wrong, consumers just do not care; so, the sooner DT buys S the better off they will both be. then, Sprextobile could compete in marketing
;-)
On Oct 30 09:02 AM bobaka wrote:
> Agree they are incompetent on the phone selection front and there
> is no excuse.
>
> Why dont they have the equivalent of Verizon Imagio and Droid?<br/>
>
> Where is HTC HD2?
>
> Why the pathetic Samsung Moment to compete with Droid?
>
> FIRE THE INCOMPETENTS IN CHARGE OF PHONE SELECTION
>
> And by the way.. Pre is useless.
Not only do they have a great network but it is the most reasonable when considering price. ATT with half the 3G coverage of Sprint charges $50 more per month than Sprint on their equivalent "all you can use programs." On their equivalent 'Everything Mobile," program Sprint is $80 cheaper than ATT and VZ.
Sprint is so sure of their coverage and service that they will allow you to use any of their phones for 30 days without a contract. That is unequivocal proof of how good their service is against the rest of the Telcos.
What Sprint was two or three years ago has no bearing on what it is today and where it will be tomorrow.
Ask someone inside Sprint how much they pay to Verizon in roaming costs every month - why do you think the the new unlimited "call anyone" plans specifically exclude roaming off of Sprint's network? BTW - T Mobile has exactly the same problem, except their roaming dollars go to ATT.
Both ATT and VZ made a smart play in using their free cash flow to buy up more of the rural GSM and CDMA players, reinforcing their dominance over TM and S.
Boost? A smart survival play to finally load up that network which costs Billions to run. But again, no roaming off of the limited iDEN footprint. Directly from their investor presentation, iDEN post paid churn is higher than CDMA...not good, as that group used to run around 1% monthly....
If you dig around and actually talk w VZ's tech folks, you'll find that they are all lined up to execute on their LTE rollout in 2010, and at the 700 MhZ band, which doesn't attenuate nearly as fast as the 2.5 |GhZ spectrum Clearwire/Sprint are working on...
It's not 5 year old data - it's a management team that continues to struggle with a bad choice made in 2001 (Sprint sucks PCS back in to the Borg) and 2005 (Nextel merger that completely diverted them from making an early 3G run).
There's a reason that the smart, institutional investors are pricing the stock as they do.
The best cast scenario for Sprint stock in the short term is LBO probably by VZ, not DT. Doesn't look like there is much downside to the common stock at this price. Looking to accumulate shares at these levels.
As far as what happened in the past being relevant, I've just perused the last quarterly results for S and they're still losing customers...sounds like its not over.
On Oct 31 02:57 AM Aryamehr wrote:
> Knowing that Sprint has twice the 3G coverage of ATT and 14 times
> the coverage of T-Mobile, and that they are the only carrier with
> a 4G platform, makes me wonder why anyone would claim that their
> networks suck, especially when you they have been recognized for
> having the 'most reliable' network by PC Magazine, and recognized
> for their network 'speed' by Boy Genius. This was all without their
> 4G platform.
>
> Not only do they have a great network but it is the most reasonable
> when considering price. ATT with half the 3G coverage of Sprint charges
> $50 more per month than Sprint on their equivalent "all you can use
> programs." On their equivalent 'Everything Mobile," program Sprint
> is $80 cheaper than ATT and VZ.
>
> Sprint is so sure of their coverage and service that they will allow
> you to use any of their phones for 30 days without a contract. That
> is unequivocal proof of how good their service is against the rest
> of the Telcos.
>
> What Sprint was two or three years ago has no bearing on what it
> is today and where it will be tomorrow.