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]