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 January 27, 2025 6:35 am PST by Joe Rossignol
Update: Apple has released iOS 18.3.
In its press release unveiling a new Black Unity Sport Loop for the Apple Watch today, Apple confirmed that iOS 18.3 is "upcoming." According to Bloomberg's Mark Gurman, Apple Stores are being instructed to update the software on demo devices today, so iOS 18.3 should be released either today or within the next few days.
Below, we recap everything new...
Friday January 24, 2025 8:16 am PST by Joe Rossignol
iOS 18.3 is expected to be widely released next week, and that means the first iOS 18.4 beta for iPhones should be just around the corner.
Apple has previously implied that iOS 18.4 will be released in April, as that is when it promised to make Apple Intelligence available in even more languages.
Below, we outline what to expect from iOS 18.4 so far.
Apple Intelligence for Siri
Siri ...
Friday January 24, 2025 1:55 am PST by Tim Hardwick
Apple is set to release iOS 18.3 next week, bringing further refinements to Apple Intelligence features, a couple of neat new capabilities to iPhone 15 Pro and iPhone 16 devices, and bug fixes.
While not quite as packed with new features as Apple's preceding iOS 18 point releases, iOS 18.3 still introduces capabilities that aim to make your iPhone smarter and more intuitive. Below, we've...
Monday January 27, 2025 11:17 am PST by Juli Clover
Apple regularly releases new firmware for the AirPods, AirPods Pro, and AirPods Max, but the company has historically provided limited information on how to initiate an update. That changed today, and Apple updated its AirPods firmware support page with more specific instructions.
Prior to today, here's what Apple said on the subject:
Firmware updates are delivered automatically while your...
Thursday January 23, 2025 6:41 am PST by Joe Rossignol
iOS 18.3 should be released to the public this week, following beta testing since mid-December. While the software update is a relatively minor one, it still includes a handful of new features, changes, and bug fixes for iPhones.
Below, we recap everything new in iOS 18.3.
Notification Summary Changes
Examples of inaccurate Apple Intelligence notification summaries
Apple Intelligence...
Wednesday January 22, 2025 6:01 pm PST by Joe Rossignol
A new Apple TV is expected to be released later this year. In this article, we recap rumored features and changes for the device.
The next Apple TV will be equipped with Apple's own combined Wi-Fi and Bluetooth chip, according to Bloomberg's Mark Gurman. He said the chip supports Wi-Fi 6E, which would be an upgrade over the current Apple TV's standard Wi-Fi 6 support. Wi-Fi 6E extends the...
Sunday January 26, 2025 7:52 am PST by Joe Rossignol
Apple continues to explore the idea of releasing camera-equipped AirPods in the future, according to Bloomberg's Mark Gurman.
Gurman only briefly mentioned the possibility of AirPods gaining tiny cameras, as part of his Power On newsletter intro this week, focused on Apple's future wearables ambitions. He did not explain what the cameras would be used for.
The tiny cameras would not be...
Saturday January 25, 2025 6:40 am PST by Joe Rossignol
After hanging on to my iPhone 14 Pro for a few years, I will likely upgrade to an iPhone 17 model this year. Typically, I only consider the Pro models, but the rumored iPhone 17 Air sounds intriguing. After reflecting on rumors, I have realized that upgrading to this device might not have as many compromises as I first thought.
Of course, the iPhone 17 Air is not yet official. Apple should...
Saturday January 25, 2025 5:07 pm PST by Joe Rossignol
Apple's retail stores will be rolling out "merchandise/floor marketing updates" next week, according to Bloomberg's Mark Gurman.
Gurman did not explicitly say if the store updates are related to any upcoming product announcements, but he did mention that next week is around the time that Apple rolls out its annual Black Unity watch band for the Apple Watch.
In each of the past four years, ...
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.
