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Has Dan Hesse Just Bet The Farm On The Next iPhone?

The world is anxiously awaiting the announcement of the next iPhone tomorrow, at an event at Apple’s Cupertino headquarters.  Ahead of the event there have been a number of reports that Sprint has just bet the farm on the next iteration of the iPhone.

According to several reputable news outlets and undisclosed sources, Sprint has ordered $20 billion (with a b) dollars worth of iPhones. That’s for 30.5 million iPhones over the next 4 years. According to the Wall Street Journal and other sources, this deal stands regardless of whether or not Sprint can actually sell 30 million iPhones.

More after the break
Until now, Sprint has been very loyal to Android. In fact at their upcoming developer conference they are partnering with Samsung to give away 1,500 Nexus S devices so that developers can focus on NFC capabilities. Of course 1,500 Nexus S devices is peanuts compared to 30.5 million iPhones.

At the GigaOM mobilized event Sprint’s Dan Hesse had said that the number one reason people leave Sprint is for the iPhone.  Sprint has also been steadily revamping perks and other benefit programs. As they axe different programs they keep referencing the fact that they know what their customers want, and that is truly unlimited data and the latest 3G and 4G devices.

With those customer initiatives in mind many are looking to see if Sprint does get the iPhone and if they can continue to support truly unlimited data.  Add to that the fact that they want to add 30.5 million more devices to their network and we should be in for an interesting spectacle.

The world will most likely find out tomorrow what carriers will get the next iPhone.  There was even one report out there that suggested Apple and Sprint could have some kind of exclusive deal for a year, that is of course doubtful.

In case you were just wondering, Yes Sprint is rumored to be paying more for 30 million iPhones than Google is paying for an entire phone manufacturer.

source: Business Insider

One Comment

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  1. Not a wise decision on Sprint’s part. Not the part about investing in the iPhone, the part where they spend a stupidly large sum of money on something that’s not guaranteed to have a large return. While having the iPhone will attract customers to the carrier, it’s not likely that the numbers will be as significant as Hesse expects.
    Furthermore, if they prioritize the iPhone over Android, they’d be making a huge mistake. Android attracted a huge number of customers to Sprint, and killing the golden goose is always unwise. The right thing to do is to present both the iPhone and Android phones equally and let the customers choose.Of course, time will tell whether this was a good call or a $20 billion mistake. I’m rooting for you, Sprint. Don’t screw this up, and do not abandon Android.

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