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Sprint CEO: iPhone users are more profitable and use less data


iPhone devices are no longer exclusive to AT&T, and other carriers are starting to see the benefits of offering the popular device. And even though Sprint has been known for having a great relationship with Google, its investment in Apple’s products has shown great results. Sprint CEO Dan Hesse has recently stated that iPhone customers are more profitable than others (including Android), which may bring a bit of a difference in the future of our favorite platform.

According to Hesse, iPhone devices bring a much heavier subsidy. Not only that, but the device has been bringing many new customers; more so than other platforms. 4 out of 10 Sprint iPhone customers are opening new lines. This happens to be about twice what other platforms are bringing.

Furthermore, Sprint CEO states that “iPhone customers have a lower level of churn, and they actually use less data on average than a high-end, 4G Android device.” Of course, iPhone devices are currently not 4G enabled. It comes as obvious that they do not use the same amount of data – They simply can’t. Especially considering Sprint’s 3G data speeds.

Sprint’s $20 million investment in bringing the iPhone on-board may show profitable now. But Apple has already started to make the move to 4G LTE, with its new iPad. Once this faster data technology is embedded into iPhones, the tables are sure to turn. We surely remember how the large quantity of iPhones affected AT&T’s network, just a few years ago.

Surely, those 1.8 million iOS devices sold during Q4, 2011 will not look so enticing then. The devices will have the ability to suck as much data as our 4G Android smartphones. Which is why we doubt the validity of the following statement:

“The marriage made in heaven is unlimited plus the iPhone. My plan is to continue for as long as we can, hopefully forever.”

Forever? Definitely not. Especially if the next iteration of the iPhone gains LTE connectivity (probably will). iPhones will consume as much data as our Android devices and a substantial amount will be sold. If anything, the iPhone could partly be the reason why Sprint stops offering unlimited data in the future.

[Source: Mobile World Live Via: Washington Post]




  • http://pulse.yahoo.com/_UDULQFCLEXI4PRUQGIBNGEWVKQ John

    Hesse needs to get his ass in gear and release the G-Nex already.

    Sprint has YET to release a true successor to the OG EVO from almost 2 years ago.

    everything since has been a pretender to the throne!

    • http://twitter.com/gamercore Chris Chavez

      The Evo 3D was a good upgrade. Best phone HTC had at the time.. Dual-core, new Sense and all that. It just didn’t do so well cuz all of the people who bought the OG were only 1 year into their contract. 

      The HTC EVO One X will kill it though. Awesome upgrade. Everyone with the OG Evo will lose their minds xD

      • Marsg

        that happens allot in the android community lol, soon as we buy a product a new cooler one is released then we go coocoo for cocopuffs for the new device 

      • http://pulse.yahoo.com/_UDULQFCLEXI4PRUQGIBNGEWVKQ John

        no Chavez.  EVO 3D was a lateral move and some would even argue a BACKWARD step for the EVO line.  same for Photon or SG2.  SG2 especially with shiittty resolution.

        G-Nex or G-Note is the only true successor!!!!!!!!!!

        • EarlyMon

          Yep, with a faster dual core processor built on a 45 nm process, increased resolution, double the ram and quadruple the internal storage – in fact with more app storage than the 4G, and a bigger battery, the Evo 3D was a huge step backwards, lateral at best.

          Yeah. No. LoL

          • http://pulse.yahoo.com/_UDULQFCLEXI4PRUQGIBNGEWVKQ John

            3D is clunky, gimmicky, bloated, smaller width display, and just downright ugly.  many prefer the OG EVO including me.  3D WAS NOT A REVOLUTIONARY UPGRADE.  3D WAS AN INCREMENTAL UPGRADE.  INCREMENTAL DOESN’T CUT IT.

          • EarlyMon

            I own both, have since launch of each. The 3D is superior in every way. The difference in screen area amounts to the space of 2 smilies.

            Dual core was not an incremental upgrade. Neither was Sense 3.0.

            Pushing over 3500 on Quadrant and over 6700 on AnTuTu with MeanROM + anthrax kernel.

            And exceed a day’s battery life, always have.

            No need to shout, lol.

          • http://pulse.yahoo.com/_XLOQV53SI3PT755OOWWSBQPYFU Anon

            3D may not be revolutionary, but how can you look at a phone like that for just the 3d. It was like one of the first dual core phones and it was good. Had 3D not been included it probably would have been better. 3d was a gimmick, but the phone was solid. The Epic 4g Touch is what forced me to sell this phone, but I signed a contract to get the 3d.

          • http://pulse.yahoo.com/_UDULQFCLEXI4PRUQGIBNGEWVKQ John

            the market disagreed.

          • EarlyMon

            Well the market certainly knows all about technology.

        • http://pulse.yahoo.com/_XLOQV53SI3PT755OOWWSBQPYFU Anon

          Dude you are looney. You just dissed 3 of the best phones this year. E4GT/gs2 being practically the best phones this year. Only thing that hurt the E4GT was Sprint. The 800×480 resoultion is actually more finger friendly than HTCs QHD so WTF are you talking about? Then the E4gT was Amoled Plus vs the notes regular Amoled.

          John you can’t be a serious Droid enthusiast. You must be an ifanboy or something masquerading. The G-Nex is ok, but not a real upgrade to the E4GT just an OS upgrade here and a camera downgrade there. Tiomap was just slightly better processor than Exynos, but it came out to late to make a difference.

          Lets not forget better battery life than any Sprint Android phone before it. All 3 of these phones exibited stellar battery life. Wimax is so easy on the battery that I rarely turn if off on my E4GT. The Photon’s battery might have been a little better with the Evo 3d being the worst, but still not nearly as bad as the Evo OG.

    • intoxicates

      They’re waiting to roll out their LTE network.  I was actually on the phone with Sprint Customer service’s call center in the Philippines and the guy said he’s waiting for the G-Nex next month and that the phone is in their system; however, of course, he could not give me a specific date.  Also the call center was in a different country so I don’t want to get your hopes up.

    • NYCHitman1

      April 15th. You heard it here first!

      • http://pulse.yahoo.com/_UDULQFCLEXI4PRUQGIBNGEWVKQ John

        no we didn’t hear it there first.  this news is more than a week old.

        • NYCHitman1

          You hush. Nobody asked you for your 2 cents.

        • http://pulse.yahoo.com/_XLOQV53SI3PT755OOWWSBQPYFU Anon

          hater. only came cus he saw Iphone.

  • chuckles87

    The day an lte iphone is released our lte speeds are going to see a huge decrease. Im not looking forward to this at all.

    • turfgrass64

      Sad but true my friend

  • ScottColbert

    “Continue for as long as we can.” Get ready Sprint customers, Danny Boy is about to   take away the last reason to stay with Sprint. Sooner, rather than later if they keep hemorrhaging money. 

  • https://plus.google.com/108596272537415356460/posts Jason Farrell

    iSheeple are easer to sheer a profit from? Unpossible! I would never have guessed that iDevice users, in aggregate, have more money than brains!

  • JulianZHuang

    why buy iphone when you can root it and use MIUI rom *iphone theme*, same as iphone but better.

  • intoxicates

    There is another point that should be addressed….the iphone demographic is geared to older people, and the less tech savvy person, who do not use the full capacity of a smartphone therefore they naturally will use bandwidth less…..Hesse does not want to insult the isheep and prevent customers from flocking elsewhere because their feelings get butt hurt….

    • http://www.iDoiDevices.com/ Jason Yeaman

      Lol, buy a better demographic application.

      Which iPhone users tend to be more mature, demographics show iPhone users tent to have more disposable capital, and are more affluent. While usually older people have more money, the disposition that ‘old people are stupid’ when it comes to tech is a stereotype for the ignorant.

      People with money are more concerned with how technology impacts their schedule than re-arranging their icons, how many cords and cards they can hang off their device.

      iOS is a little more capability centric out of the box, and offers a similar experience across the range of devices and is less configurable than android. That is true

      But most people don’t care about configuration. They want to buy tech, have it work, easy to operate, so they can accomplish what they bought it for, put the handset down and live life man.

      I understand the android enthusiast, and I respect the fact that they are deeply interested in something to the point that their day revolves around the technology, but other people feel their lives are the center of the universe, and that everything revolves around them.

      That’s the difference.

      • intoxicates

         Don’t need an app I just search for journals/articles online.  Peer reviewed preferably or reliable sources.  When you say affluent what is that considered to you.  Not ones that are one sided or that are influenced by “Apple marketing”.

        Since I work first hand with millionaires (majority are old) I know their criteria which is the best and fastest, best or course is subjective, also many of them, because they are older “do not like change”…..

        I agree, that, to affluent people, time is valuable and that is one reason they may tend to use iphones, because from what the majority of people say is that they are “user friendly”, though I know some tech guys that would not agree.  So as you say, out of the box they are easy to use. 

        Getting back to the point of using less data.  Iphone users value time, busy making money (+ for using less data), older and do not like too many variations (+ for using less data), 3g (+ for using less data), no porn (+++ for using less data).

      • snowblind64

        “…other people feel their lives are the center of the universe, and that everything revolves around them.”

        And those people are considered douche-bags.

        Oh and I have seen firsthand that the demographic for iPhone users is going toward the older generation. All but one of my friends (of those that own smartphones) have Android phones while my girlfriend and my parents all have iPhones.

        You just have to face facts. The iPhone was initially mostly owned by younger people (<50) but that demographic has changed significantly in the last couple years as the Android platform has grown and matured, and as the popularity of smartphones in general has exploded causing the older generation to adopt.

        • http://pulse.yahoo.com/_XLOQV53SI3PT755OOWWSBQPYFU Anon

           Dude you are the man!

          “…other people feel their lives are the center of the universe, and that everything revolves around them.”

          And those people are considered douche-bags.

          This!

    • RealBhuiya

      No the real reason is because above average data use on an iphone kills your battery, these people have no clue how good android is

  • oOMavrikOo

    I just left Sprint last week (opted out of contract after they changed their pricing structure). I ported over to Verizon and will not be looking back. So long horrible data speeds and crappy customer service. I’ve only been with Verizon for a few days,but I’m starting to wonder how I ever lived without it!

    • mhmmd123

      Because you have not seen anything yet !  I had VZW for two 10 days, and I left them. Their service in my area the same Sprint 3G, which VZW claiming and showing on the TBOLT I`m on 4gLTE network. After 10 days the sweetness I had from them turn to be $350.0 ETF plus $100.0 to use the phone. Which the told me I have two week to try the network, and it`ll be no ETF charges, but they said it`ll be activation fee which it`s okay, But not the EFT. Here is the sweet you`ll see.
      If anyone don`t believe it, I can post my VZW bill.

      • http://profile.yahoo.com/S5QJ4OKYRRWIF5IQUFSVFZEMMQ MichelleJ

        A bill wouldn’t help because if you had charges that are not valid or should get credited, they get adjusted on the following bill. Maybe checking your grammar would be more help to us.

    • HalfwayCrook

      Smart move!

    • http://pulse.yahoo.com/_XLOQV53SI3PT755OOWWSBQPYFU Anon

       I retired Sprint for Straight talk the ATT MVNO GSM based operater. Good speeds, marketed as unlimited and I can bring my own device. Ill probably hold the line to see what happens with Sprint LTE/unlimited  and use a droid to track my kid at school, but for the most part Sprints 3g are garbage for now. Even Verizon 3g is not a match for ATT HSPAplus out here.

      Im with you not looking back.

  • Joey

    If sprint subsidizes more per each iphone than how is it more profitable? Must selling tons of those lil phones.

  • Marsg

    no duh iphone users use less data, they barely use their iphone unless it involves making fart noises or playing angry birds lol on top of the given textmsgs, hell just yesterday i downloaded a 785 mb .rar file on my GN something the iphone cant do 

    • http://profile.yahoo.com/S5QJ4OKYRRWIF5IQUFSVFZEMMQ MichelleJ

       hmm…sounds like you might be pirating! Argh!

      • Marsg

        Nah actually it was a set of lecture files from my schools website lol

  • Sisyphus21

    “more profitable” = pay more, get less.

    ’nuff said.

  • Dzhokhar

    In addition to only being 3G instead of 4G, iPhones more aggressively push their users to use WiFi when available, and have more paid apps instead of ad-supported apps, both of which also reduce data usage.

  • MA

    His analysis isn’t very well thought out.

    The iPhone uses less data NOT because its 3G only, but because it doesn’t offer real Multitasking, it’s market has stricter rules about app submission, and the APIs in iOS make it difficult for apps to take advantage of the data connection in the background.Sprint also had to shell out a few BILLION dollars to Apple just so that they would make the iPhone work on Sprint. That ‘down payment’ to Apple is not going to pay off any time soon.

    CEO Dan Hesse’s statement is in reality a forward looking statement and does not mean that the iPhone is profitable NOW but will be in the future because the numbers do not say the iPhone is profitable right now.

    Sprint’s iPhone also is heavily subsidized and it is more then likely that part of the agreement with Apple is that Sprint cannot sell a flagship Android phone for a lower subsidy then what the iPhone gets. Also the iPhone cannot be sold at a lower price regardless of the carrier or outlet, if it does get sold at a lower cost, then there must be a special, Apple approved, exception.

  • InspectorGadget80

    It’s because people are listening to their music or playing their apps. that’s why AT&T Verizon looses their unlimited data in my opinion anyway

  • UMA_Fan

    Also Sprint users in general get really poor download speeds most of the time.  An iPhone user would almost be guarantee the best coverage of the slowest download speeds.  So of course they would use less data,  Since Sprint’s LTE is only going to be a 10mhz implementation they are really going to get killed if people start to abuse their unlimited plans.

  • jawman

    My Android phone on Sprint used to pull some sick 3G speeds, it was freakin awesome. My friends with iPhones would do speedtests comparisons and they were shocked that it was 3G. Now that Sprint has the iPhone on their network, my 3G speeds have slowed to a crawl, and are extremely unbearable – the phone is useless at times because it’s so worthless and slow. The iPhone effect ruins everything it touches : (

  • ari_free

    I think the tiny screen of the iphone is responsible for less data. If it’s harder to watch a streaming video or website then you won’t do it very often.

    • http://profile.yahoo.com/S5QJ4OKYRRWIF5IQUFSVFZEMMQ MichelleJ

       Good point.

    • http://pulse.yahoo.com/_XLOQV53SI3PT755OOWWSBQPYFU Anon

      Yea compared to a high end Galaxy note with a 5.3 inch screen or a low end Blu Studio with a 5.3 inch screen droid users can gobble up some data.

      I showed a few Isheep my GNote and they were like dude thats to big. I said thats like saying my cocks too big just because its bigger than yours. They all looked at me with this blank stare.

      So they all proceeded to squint and look at a basketball game with 5 guys huddled over an Iphone as I kicked back and watched it on my GNote in HD.

  • http://Theywaitedtoolong Dsparil

    Who cares if iPhone is more profitable than Android for Sprint? It’s not like Sprint is going to stop supporting us… They still value us as costumers.

    However, my issue with Sprint is the Wimax has crap building penetration, and it doesn’t work inside my house or inside my work here in Las Vegas. The coverage is simply spotty, and 3G is too slow.

    I’m waiting for the LG G4X (LG X4) our G3 (HTC One X) on T-Mobile and I’m out of Sprint’s crappy coverage.

    • Darktanone

      Are you SERIOUS! Sprint cares about making money! The iPhone is delivering on its promise to increase their bottom line. It’s that simple. T-Mobile could use the iPhone to turn things around at the struggling carrier. Android devices, despite their market share, haven’t been very profitable for the company. They pale in comparison to the iPhone’s ability to improve profits. They don’t even come close. 

  • Lucas

    Not sure if its still the same but when I had an iPhone 3g it wouldn’t let me download anything over 10mb on a mobile data connection. It would force me to use wifi. So that would explain using less data.

  • DannyB2

    >  Sprint CEO: iPhone users are more profitable and use less data

    Translation:

    iPhone users have more money than sense, so it is easy to sucker them out of more money, and they are not smart or tech savvy enough to make much use of their phone’s features, apps or data.

  • turfgrass64

    “Of course, iPhone devices are currently not 4G enabled. It comes as obvious that they do not use the same amount of data – They simply can’t. Especially considering Sprint’s 3G data speeds.”
     Fucking Brilliant, this quote says it all, LOL Sprint Stinks!

  • Sarah Chambers

    http://mycrushedsoul.wordpress.com/2012/03/24/sprintiphone/  That’s the real iPhone cause and effect

  • http://www.facebook.com/lucyparanormal Daniel Tiberius

    Obligatory Sprint 3G data speeds are terrible post