3 Reasons Why the IPhone Won't Help Sprint Very Much

It might sound like a major win for Sprint to begin selling the iPhone for the first time in mid-October, but veteran industry analysts say it won't help Sprint all that much.

By Matt Hamblen
Wed, August 24, 2011

Computerworld — It might sound like a major win for Sprint (S) to begin selling the iPhone for the first time in mid-October, but veteran industry analysts say it won't help Sprint all that much.

Slideshow: The iPhone Quiz

Sprint will get the iPhone 5 in mid-October, at the same time that its bigger competitors, AT&T and Verizon Wireless, get the iPhone 5, according to unnamed sources cited in the Wall Street Journal. Both AT&T and Verizon already sell versions of the iPhone.

Sprint won't comment officially on selling the iPhone and Apple won't comment on when the next-generation iPhone will launch, or with which carriers. Even so, a next-generation iPhone is widely expected to surface in coming weeks, one with an improved operating system and a better camera.

While some experts regard Sprint's ability to finally offer an iPhone as a major win for the third-largest U.S. carrier, other disagree. Here are three reasons why selling the iPhone won't help Sprint all that much:

1. Sprint unlikely to win many new customers

"The iPhone is a great device and it will let Sprint hang on to some customers who would otherwise leave [the carrier], but I don't think many customers will move to Sprint because of the iPhone," said Jeff Kagan, an independent technology analyst, in an email. "While definitely good news, I don't see this [sale of the iPhone] shaking the timbers at Sprint."

Added Jack Gold, an analyst for J. Gold Associates: "Unless Sprint has a major price advantage, including really low-cost data plans or some other sales gimmick like free phones, Sprint might not gain all that [many new customers] since many people consider Sprint to be the least desirable carrier from a coverage perspective."

Gold said that while some Sprint customers "would like to get their hands on the iPhone," thus helping sales, the phone is unlikely to make as much of an improvement for Sprint as it did when Verizon got the iPhone 4 in February. (In 2007, AT&T got the original iPhone, exclusively, which helped improve AT&T sales.)

"The iPhone is now becoming a commodity, since it is soon to be available on all carriers," Gold said via email. "So customers will not only choose a phone, in this case the iPhone, but also the carrier they want to work with."

At best, added Gartner (IT) analyst Ken Dulaney via email, Sprint's iPhone "probably keeps some customers from bleeding to other networks."

On the contrary, the conventional wisdom shared by a few Wall Street analysts is that Sprint will see customers upgrade to the iPhone, which could draw them inside Sprint stores to buy iPhone accessories, which command high profit margins.

1 2 3 next page »

Originally published on www.computerworld.com. Click here to read the original story.

What is Tech Briefcase?

TechBriefcase is a new, free service where IT Professionals can Search, Store and Share IT white papers and content like this. Learn more

Bookmark content

Speed up your research efforts with content across the web.

Search and Store

Find the white papers you need. Create folders for any topic.

View Anywhere

Open your briefcase on your iPhone, tablet or desktop. Share with colleagues.

Don't have an account yet?

You are here: Technology Topics » Mobile/Wireless » News Feature

Most Recent iPhone Stories

White Papers »

Gartner Report on BYOD: Media Tablets and Beyond

This research assesses the impact of the growth in media tablets and other "off desktop" form factors entering IT deployments and makes recommendations on building an enterprise management plan based on industry best practices.

BYOD Policy Implementation Guide

This BYOD implementation guide from Absolute Software provides three simple steps to legally secure and manage employee-owned devices within a corporate environment.

Symantec Smartphone Honey Stick Project

The Symantec Smartphone Honey Stick Project is an experiment involving 50 "lost" smartphones. This report provides a list of Symantec's recommendations for both businesses and consumers, and simple practices and tools that can eliminate the majority of the risk involved with losing a smartphone.

Leverage the BYOD Revolution in your Enterprise

On average, a new wireless device, complete with its own quirks and running on an increasingly sophisticated array of operating systems, reaches the market every 45 days. Even now, wireless smart devices are replacing cumbersome equipment once thought indispensable to business, enabling employees to choose the tools they are most comfortable with to perform their duties. This revolution impacts the corporate network as devices and people jump on and off the network throughout the day. Enterprises that are not prepared for the tidal wave of wireless devices massing in the market will not only fail to realize the benefits of the BYOD revolution; their networks will be crippled. Read this informative white paper for ways to meet the needs of your users powered by the new wireless enterprise.

The most simple & secure solution for Intranet access from mobile devices

The promise of enterprise mobility means that employees are more productive and address business issues in a timely, untethered manner.

Mobile Middleware Strategies

Learn why a mobile development platform is critical to be able to support today's complex enterprise mobility strategies. Learn what to look for in a mobile development platform and how apply these tools whether you're developing a dedicated app for one device or multiple apps running across multiple devices.

Webcasts »

Set It & Forget It - Apple Devices in the Enterprise

Ben Snyder, Desktop Support Analyst at Under Armour, discusses how this fast-growing company with thousands of mobile employees uses an automated process to manage its mix of PC and Apple devices from a single console.

Take Control and Empower users with BlackBerry Mobile Fusion from RIM

At one time, a smart phone was only on executive tool that increased productivity. But now, more employees than ever before are bringing their own mobile devices and tablets into the workplace. CIOs must satisfy this new class of users but they need the tools to manage the growing number of devices and tablets over a wider variety of mobile operating systems.

Join David Heit, Senior Director of Product Strategy for Research In Motion (RIM) and award-winning technology editor Stan Gibson for a look at the forces that are transforming mobile IT today. In this Webcast you will learn about BlackBerry(R) Mobile Fusion and now you can manage and secure BlackBerry(R), iOS and Android(TM) devices all from one unified interface.

Mobility KnowledgeVault

How "mobile ready" is your infrastructure? This Mobility Knowledge Vault provides a wide variety of expert advice on how to strike a balance between end user ease-of-use and security. Prepare your organization with primers on data encryption and user authentication, device disablement and devising an employee-liable device strategy that makes both IT and users happy.

Successful Mobility: Access and Performance Anywhere

Today's workforce is truly mobile. At the office, from customer sites, even at home or in a hotel - their connectivity and application performance needs remain the same. But even though their requirements don't change, the challenges in meeting their expectations do.

Workday's Mobile Solution for iPad

Stay connected while on the go
As the workforce around the world becomes more mobile, enterprises are enabling their workers to stay informed and connected while on the go. Deploying Workday's cloud-based mobile solutions could not be easier!

Embracing BYOD: Best Practices from the Front Lines

Mobility is reshaping business worldwide. It's also reshaping how IT operates, fueled by the "Bring Your Own Device" trend, a trend that's been in the making since at least 2008. In this webcast, you'll learn how world IT leader SAP has embraced BYOD for lower costs, higher employee satisfaction and better business outcomes.

Newsletter Sign-Up »

Receive the latest news test, reviews and trends on your favorite technology topics

Choose a newsletter