News by Andrew Kameka on Thursday October 25, 2012.
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Sprint made a big gamble when it committed billions of dollars to invest in the Apple iPhone, but the carrier's recent quarter shows signs that the gamble may eventually pay off. In the third quarter of 2012, Sprint had a net loss of $767 million, the largest since the first quarter of 2008. While the financial losses are disappointing, Sprint happily reported that it made gains in customer attraction, and the iPhone played a crucial role in those efforts.
Sprint reports that it just finished its best ever third quarter churn rate, which is the rate at which the company gains and retains customers versus loses them, at 1.88 percent. Churn was high until 2010 when the company introduced the HTC EVO, but many customers still left to purchase an iPhone. The introduction of the iPhone has helped Sprint not only retain existing customers but attract new ones as well. In the third quarter, Sprint activated 1.5 million iPhones, 600,000 of which were for new customers. The carrier reports that it had a net addition of 410,000 postpaid subscribers.
While the iPhone costs more than most devices because of the volume of phones Sprint agreed to purchase from Apple, CEO Dan Hesse says the company sees savings in other areas. The early experience among iPhone buyers leads to lower calls to customer care, service, repair costs, and returns versus other smartphones. Now serving more than 56 million customers, attracting new subscribers and limiting the costs of keeping them happy may pay dividends for Sprint's investment.source: Sprint
Andrew is based in Miami, Florida.