Friday, February 10, 2012

Popularity of the iPhone

Sprint hasn’t been doing so well. However, things are going to change, since Sprint has recently added the iPhone to the list of products they are going to sell. Demand for Sprint products hasn’t been very high, as they constantly report having had losses in profit. There’s a positive and negative to getting the iPhone. The negative is that getting the iPhone has its own costs. Each iPhone will cost roughly $200 more than other smart phones. Profits aren’t really expected to show up until 2014. The positive is that profit is expected. The constant reports of net losses will cease. Sprint will change their demand line by adding a very popular product to sell. By popularity. Adding the iPhone will initially have a decrease in profits, but in the long run, it will greatly benefit the company.


Amber said...

Since, Sprint does not expect profit gains until 2014, are they taking immediate actions now to try and stop losses now? The phone market is so extremely competitive right now, I would assume that Sprint could be taking more hits even with the release of the iPhone on their network. If they go 2 to 3 years with more losses, will the company even stay alive long enough to experience these gains? Will these gains be enough to make up for their losses? Most likely not. iPhone's have been around for a long time and since they have been available on other networks, many people may have aready switched networks. I believe Sprint is making a smart decision by finally hopping on the iPhone bandwagon but I am doubtful that this phone will be able to make up for their losses.

Smith said...

Does it really cost Sprint an extra $200 per unit?

Taylor said...

I completely agree with Amber, and also feel that there may be a possibility that Sprint brought in the iPhone a bit too late. Sprint has been losing money for years, not because they lacked quality hardware (phones) but because their main product, their actual cell phone service, has been lacking. I feel that Sprint would have been better off if they focused on improving their actual phone (network) and customer services instead of selling a couple cool new phones. Like Amber was saying, you can get the iPhone in tons of other places for pretty much the same price, leaving the only question for a consumer to ask is "Where can I get the best quality network service?" If Sprint doesn't improve their network quality, they will lose all of those iPhone customers to the other companies that can provide both the phone and the quality service.