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.
Sunday December 22, 2024 8:09 am PST by Joe Rossignol
iOS 19 will not drop support for any iPhone models, according to French website iPhoneSoft.fr. The report cites a source within Apple.
The report said that iOS 19 will be compatible with any iPhone that is capable of running iOS 18, which would mean the following models:
iPhone 16
iPhone 16 Plus
iPhone 16 Pro
iPhone 16 Pro Max
iPhone 15
iPhone 15 Plus
iPhone 15 Pro
...
Sunday December 22, 2024 8:33 am PST by Joe Rossignol
Apple earlier this month released macOS 15.2, and in doing so it accidentally confirmed new MacBook Air models coming next year.
Apple accidentally released macOS 15.2 restore files for unreleased "MacBook Air (13-inch, M4, 2025)" and "MacBook Air (15-inch, M4, 2025)" models. While it no surprise that the 13-inch and 15-inch MacBook Air models were going to be updated with the M4 ...
Friday December 20, 2024 2:22 pm PST by Juli Clover
It's looking like 2025 is going to be an important year for Apple, with the company planning to revamp the iPhone, push further into smart home products, and improve Apple Intelligence. There are tons of new products rumored for 2025, including new iPhones, M4 Macs, a smart home command center, and much more.
We've highlighted the top five Apple products that will have the biggest impact in...
Saturday December 21, 2024 4:45 pm PST by Joe Rossignol
Apple appears to be internally testing iOS 18.2.1 for the iPhone, based on evidence of the software update in our website's analytic logs this week. The logs have accurately revealed many iOS versions before they were released.
iOS 18.2.1 should be a minor update that fixes bugs and/or addresses security vulnerabilities, but it is unclear which specific issues might be resolved. The update...
Monday December 23, 2024 7:40 am PST by Tim Hardwick
This year, Apple tweaked iPhone 16 Pro screen sizes to make them bigger than 2023's iPhone 15 Pro models, and next year we are also expecting a change in the size of the displays in the iPhone 17 lineup. Here's what we know.
Standard iPhone 17
Apple could introduce a new display size for the standard iPhone 17 model in 2025. The iPhone 17 could measure in at 6.3 inches, up from 6.1 inches,...
Monday December 23, 2024 6:24 am PST by Joe Rossignol
While the iPhone 18 Pro and iPhone 18 Pro Max are still nearly two years away from launching, a new feature has already been rumored for the devices.
In a blog post today, Apple supply chain analyst Ming-Chi Kuo reiterated that the main rear camera on both iPhone 18 Pro models will offer variable aperture, which would be a first for the iPhone. The main camera refers to the 48-megapixel...
Saturday December 21, 2024 2:03 pm PST by Joe Rossignol
Apple plans to release a new "HomePod" with a 7-inch LCD display, an A18 chip, and Apple Intelligence support in 2025, according to DigiTimes.
Google's Nest Hub
It is unclear how much the screen-equipped HomePod would cost, but Apple is seemingly aiming for a reasonable price. In a paywalled report this week, the supply chain publication said Apple has selected China-based manufacturer Tianma ...
Tuesday December 24, 2024 8:35 am PST by Joe Rossignol
Apple is expected to release an AirTag 2 next year, and a few new features and changes have already been rumored for the item tracker.
Below, we recap what to expect from the AirTag 2:
The new AirTag is expected to be equipped with Apple's second-generation Ultra Wideband chip for longer range. The chip debuted last year in the iPhone 15 and the Apple Watch Ultra 2, and Apple said it...
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.
