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J.P. Morgan's Philip Kusick isn't buying yesterday's WSJ report about Sprint (S -7%) committing...

J.P. Morgan's Philip Kusick isn't buying yesterday's WSJ report about Sprint (S -7%) committing to $20B in iPhone (AAPL) purchases, noting the commitment might represent 37% of Sprint's phone sales over the next 4 years. He's also skeptical about Sprint's reported per-iPhone subsidy of $500, given its Android (GOOG) subsidies are much lower.
Comments (2)
  • BlackAustrianSwan
    , contributor
    Comments (11) | Send Message
     
    I am concerning how Sprint will be able to lure current iPhone users and would-like-to-be iPhone users from other carriers to Sprint.

     

    I am aware that Sprint is "promising" unrestricted data for one fixed price but is that sustainable and will be kept unlikely broken promises by other carriers?

     

    Sprint's price is so low to the point where I wonder if it will cause Sprint to do reverse-split?
    4 Oct 2011, 12:24 PM Reply Like
  • Headcoach
    , contributor
    Comments (431) | Send Message
     
    Ok, here it comes, you ready? If you were Sprint and you just paid $20 billion dollars for a iPhone 4S that doesn't work on a TDD-LTE system that they are putting in, I say again, a iPhone that will not work on an TDD-LTE network, then why would you invest all that money on a dog with flees?

     

    However, do you really think that the CEO is stupid? Ok, let's say you were the CEO and you just spent $20 billion dollars...wouldn't you really want something special for the company? Remembers, you just spent $20 billion.

     

    How remember, if you were the CEO, you came out with a press release in January that you are going to have your own LTE network. Ok, why invest in 30 million iphone sales commitment if it just a phone that any carrier can sell?

     

    Ok, here's what I think. Friday at 9:30 AM when the market opens, Sprint is going to come out with a..."Look what we have!" speech. If you just spent $20 billion dollars on a phone, wouldn't you want exclusive right? Hell yes you would.

     

    Ok, so let's say on Firday, they come out with a.."We have exclusive right to sell the new iPhone 5 with LTE technology on our new TDD-LTE (Clearwire) network!" Then what?

     

    Ok, let me ask you then..."How many customers do you think will have problems moving over to Sprint?" I have been with T-Mobile for 14 years and when they come out with this "guess what we have", I'm crossing over to Sprint.

     

    Well, look at it this way. I don't think they will have any problems selling this new iPhone 5, if they are the only ones that have it and can sell it....what do you think?
    5 Oct 2011, 02:18 PM Reply Like
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