Sprint Loses Money, But Sells 1.5 Million iPhones - Olmec Skip to main content

Sprint Loses Money, But Sells 1.5 Million iPhones

By July 26, 2012February 28th, 2023Blog

Sprint recently shut down its Nextel network, its Network Vision project, and withdrew its investment in Clearwire. Because of these massive changes, Sprint reported a loss of $1.37 billion (46 cents a share) on revenue of nearly 9 billion. This is significantly higher than ten months ago when it reported a loss of $863 million for the same quarter.

This quarter, 26 cents were lost because of Network Vision, 6 cents because of the shutdown of Nextel towers, and 7 cents were related to its investment in Clearwire, which will no longer be providing 4G WiMax services to Sprint.

Analysts believe this isn’t the end of Sprint’s slip in the stock market, and predict that this year will show an $8.73 billion loss (another 70 cents a share). It is likely that Sprint will report a few more quarters of significant losses because of the transformation of the network. However, it will eventually support more technologies than it does now, including an incredibly quick 4G LTE Network. Still, the Nextel shutdown and iPhone subsidies will continue to weigh down on the company until the middle of next year, at the earliest.

Sprint remains in third for most popular wireless carrier, but it is unfortunately a very distant third. While AT&T moves to “subscription family plans” and tiered limited data, Sprint refuses to follow suit and still offers unlimited data and services such as mobile Web and streaming video. They hope this move will bring more business to them.

Sprint sold some 1.5 million iPhones last quarter. Even though this is significantly less than both Verizon and AT&T, 40% of the new iPhone customers were new to the carrier, and most had left AT&T and Verizon. They added 442,000 customers last quarter, but lost 668,000 when they shut down Nextel services. Most of those 680,000 customers were brought back into Sprint before they chose another carrier, however.

Nextel Networks will be completely dismantled and decommissioned by early next year, Sprint says.

Chris Forte

Chris Forte, President and CEO of Olmec Systems, has been in the MSP workspace for the past 25 years. Chris earned his Master’s Degree from West Virginia University, graduating Magna Cum Laude. He was a past member of the Entrepreneurs’ Organization, a current member of the New Jersey Power Partners and Executive Association of New Jersey, where he has previously served on its board of directors. In his spare time, Chris enjoys traveling with his family. He also admits to being a struggling golfer and avid watcher of college football and basketball. He currently lives in Boonton Township, NJ with his wife, two daughters, son, and black lab Luna.