Sprint Chief Defends Decision to Carry Apple's iPhone

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News Posted: Wed, Aug 8 2012 10:11 AM
Sprint, the third largest wireless carrier in the U.S., reported a $1.37 billion loss in the second quarter, and likened the challenges his company faces to that of a football game. He told the press that it's like "blocking and tackling" every quarter, every year. But what happens when you call a bad play? Towards that end, was it the right decision to commit to buying $15.5 billion worth of iPhone devices over the course of the next several years? Company CEO Dan Hesse has no regrets about that.

"I've said everything has to make sense economically. But we knew our customers wanted the ability to choose the iPhone. We clearly looked at economics both short-term and long-term. Over time it starts to be cash-flow positive," Hesse explained. "We saw no reason to bet against Apple. You really don't want to be on the outside of that."

iPhone Devices

Hesse went on to talk about the importance of brand, that it's critical to have your own brand associated with other successful ones, and that there's no debating "what a great brand Apple has." To Hesse, the benefits of aligning corporate brands "greatly outweighed the risks."

Does that mean Sprint will be getting an iPad as well, particularly as it rolls out 4G LTE networks? Hesse suddenly turned cagey when posed with that question, playing the "can't comment" card, but acknowledged that it's a good question.
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Well I don't know much about the economics of the cell phone industry but I think Sprint made the right move. It appease the Apple sheeps (I being one of them in the cases of their iPhones) and attracts customers that previously have been put off by the lack of the iPhone.

"You can't just ask customers what they want and then try to give that to them. By the time you get it built, they'll want something new."

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