By Christian Zibreg on May 17, 2012
Sprint Nextel, the third-largest wireless operator in the United States, won’t turn a profit on Apple’s iPhone until at least 2015, CEO Dan Hesse asserted during the company’s annual shareholders meeting on Tuesday.
So why did Sprint cough up a whopping $15.5 billion to get the iPhone in the first place?
Well, being in it for the long haul, Sprint is prepared to go the distance in order to slow subscriber turnover and create a new segment of higher-value subscribers. Plus, iPhone customers use less data and are more profitable, if Hesse is to be believed.
From Sprint’s standpoint, betting the farm on the iPhone and making huge investments in 4G LTE infrastructure will be worth it, even with the legitimate risk of bankruptcy… Read More
By Christian Zibreg on May 5, 2012
According to both The Wall Street Journal and Reuters, Sprint CEO Dan Hesse has agreed to a salary reduction that will see his paycheck reduce by a whopping $3.25 million in this year.
Shareholders weren’t too happy that a formula Sprint uses to calculate its CEO’s compensation fails to take into account high iPhone subsidy.
Something doesn’t compute here… Read More