The Wall Street Journal reports the Sprint is preparing to "bet the company" on the iPhone, agreeing to purchase 30.5 million units over the next four years regardless of whether they are purchased by customers or not. At a current average selling price of $655 for the iPhone, the agreement is a nearly $20 billion commitment for Sprint.
Mr. Hesse told the board the carrier would have to agree to purchase at least 30.5 million iPhones over the next four years—a commitment of $20 billion at current rates—whether or not it could find people to buy them, according to people familiar with the matter. In order to keep the price people pay for the phone low and competitive with rivals, Sprint would be subsidizing the cost of each phone to the tune of about $500, which would take a long time to recoup even at the high monthly fees iPhone users pay.
With a source calling the projected hit to Sprint's operating income "staggering", the company's directors agreed to the deal as an all-in gamble to give Sprint hopes of competing against AT&T and Verizon.
The report notes that such commitments aren't unusual for Apple's carrier partners, demonstrating the leverage Apple has gained with the iPhone. With multi-year deals carrying unusual provisions for increasing units over time, Apple is locking in carriers for the long haul in much the same way that it has sought to lock in component suppliers for its hardware.
In the wake of the new report on Sprint's massive iPhone commitment, BGR separately reports that this development may lend weight to a claim it had heard that had previously seemed outrageous – that the iPhone 5 does indeed exist and that it will launch as a 4G WiMAX device as a Sprint exclusive.
I have been told that Sprint will be getting the iPhone 5 — yes the real iPhone 5, not the iPhone 4S — as an exclusive. And it will be a WiMAX device. AT&T and Verizon would launch the iPhone 4S and get the iPhone 5 sometime in the first quarter of next year as an LTE device. Globally, the iPhone 5 might be available as a 4G HSPA+ device.
The claim reportedly comes from an "incredibly solid" industry contact and is one which has seemed simply unbelievable. But with Sprint clearly betting the future of the company on the iPhone, it is at least possible that it may have gone to extreme lengths to make a staggering entrance to the iPhone market.
BGR's rumor record has been spotty over time, and it's hard to imagine Apple making this move. Still, we mention it for interest and discussion in the lead-up to tomorrow's media event.
Monday February 3, 2025 1:15 pm PST by Juli Clover
Apple does not approve of the "Hot Tub" pornography app that was released for the iPhone in the EU using alternative app distribution, Apple said in a statement to MacRumors. Further, Apple is concerned about the potential user safety risks with a pornography app, and says that it undermines consumer trust in the Apple ecosystem.
We are deeply concerned about the safety risks that hardcore...
Tuesday February 4, 2025 8:00 am PST by Juli Clover
Apple today announced the launch of a new app called "Invites," which is designed to allow users to plan events like birthday parties, graduations, vacations, baby showers, and more.
"With Apple Invites, an event comes to life from the moment the invitation is created, and users can share lasting memories even after they get together," said Brent Chiu-Watson, Apple's senior director of...
Sunday February 2, 2025 6:15 am PST by Joe Rossignol
Apple previously teased that Powerbeats Pro 2 would be released in 2025, and now an announcement date has leaked. Bloomberg's Mark Gurman today said Apple plans to unveil the wireless earbuds on Tuesday, February 11.
Powerbeats Pro 2 will be priced at $250 in the U.S., he said.
Powerbeats Pro are a sportier, fitness-focused alternative to AirPods Pro with built-in, adjustable ear hooks...
Sunday February 2, 2025 8:34 am PST by Joe Rossignol
Starting next week, Apple's retail stores will no longer offer AppleCare+ plans as a one-time purchase, according to Bloomberg's Mark Gurman.
Instead, he said the stores will only offer AppleCare+ as a subscription. For example, AppleCare+ for the iPhone 16 Pro Max costs $9.99 per month, or $199 upfront for two years. The latter option would no longer be available at Apple's stores....
Sunday February 2, 2025 6:42 am PST by Joe Rossignol
As early as this week, Apple plans to introduce a new iCloud-based service for event invites, according to Bloomberg's Mark Gurman.
In his Power On newsletter, Gurman said the new service is codenamed "Confetti" within Apple. He said the service will offer users a "new way to invite people to parties, functions, and meetings." He did not say if this functionality would be available through a ...
Tuesday January 28, 2025 11:48 am PST by Joe Rossignol
While the iPhone 17 Pro and iPhone 17 Pro Max are not expected to launch until September, there are already plenty of rumors about the devices.
iPhone 17 Pro concept based on rumors
Below, we recap key changes rumored for the iPhone 17 Pro models as of January 2025:
More aluminum: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone 16 Pro models ...
Tuesday February 4, 2025 9:35 am PST by Juli Clover
Apple this week increased the prices for its monthly AppleCare+ subscription prices for the iPhone, raising the cost by 50 cents for all models in the United States.
Standard AppleCare+ for the iPhone 16 models is now priced at $10.49 per month, for example, up from the prior $9.99 per month price. The 50 cent price increase applies to all available AppleCare+ plans for Apple's current...
Tuesday February 4, 2025 7:11 am PST by Joe Rossignol
Update: The new Apple Invites app has officially been announced.
The main iCloud.com page has seemingly confirmed Apple's rumored invites tool, which has yet to be officially announced by the company.
The page says "Apple Invites" will be an iCloud+ feature:Upgrade to iCloud+ to get more storage, plan events with Apple Invites, and have peace of mind with privacy features like iCloud...
I'm really torn right now... on one hand, it's the WSJ. They speak volumes and don't usually open their mouths unless they're very sure of their sources.
On the other hand, I can't believe Apple would do this. There isn't a single iPhone 4 user out there that has completed their 2-year contract with AT&T or Verizon. They'd be pissing in the faces of every single iPhone 4 user by not allowing them to upgrade without a ton of hassle.
As much as I trust the WSJ, I'm calling BS. This just doesn't add up, and I don't think Apple would screw this many customers for a few extra bucks. IMO, they'd lose more in iPhone 5 sales than what they'd make from Sprint!
Note there are 2 rumors here.
1. WSJ: Sprint committing $20 billion to Apple 2. BGR: Sprint as an iPhone 5 exclusive
They are separate sources, and honestly, of separate believability. But tied together in reasoning. Sprint is supposedly paying this $20 billion to get exclusivity.
With Apple expanding the number of carriers that carry the iPhone worldwide, why would Apple take a step backward and make there #1 money making product available only on Sprint? It makes no sense.
Sprint carrying the iPhone starting Oct. 4th makes more sense.
