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Sprint CEO Defends Company's Decision To Bet It All On the iPhone
zacharye writes "Sprint chief executive Dan Hesse is being watched closely by the company's board of directors, but the CEO has to answer to investors and subscribers as well. Last year in October, Hesse revealed that the company is placing a massive $15.5 billion bet on Apple's iPhone, and in a recent interview, Hesse defended the move, which has been criticized by a number of industry watchers. From the article: '“Subsidies are heavy for the iPhone. This is the reason why a high percentage of new customers is important,” Hesse said during the interview. “But iPhone customers have a lower level of churn and they actually use less data on average than a high-end 4G Android device. So from a cost point of view and a customer lifetime value perspective, they’re more profitable than the average smartphone customer.”'"
It is a bit surprising. (But so too was the stat that the number of iPhone users (UK) in debt are about double that of Android users.) Maybe these persons don't buy the phone for actual use, but for the same reason I spent money on a watch that I didn't need -- it looks good on my wrist.
My AC stalker: " I personally agree with your posts most of the time, but that won't keep me from modding you troll"
They pay more and use less? What a shocker! Who would have thought?
It's not even that. What he's saying is that 4G Android users use more data than iPhone (i.e. 3G) users do (shocking!) since iPhone is currently still 3G/"3.5"G, and the Android users are more likely to demand the newest gadgets (i.e. "higher churn"). Which is naturally worse for the phone company who wants you to buy whatever phone, keep it forever, and never use the speed you're paying for while still continuing to pay for it.
The problem is that newer, 4G iPhones are likely to attract exactly the same crowd. So unless Sprint's new business model is to keep selling obsolete iPhones forever, they had probably better get a new plan.
Soon as my contract is up I'm going back to a flip phone. Had an iPhone since they first came out, bought the 3gs, bought the 4, smart enough to realize the 4s was just more of the same, but with even more useless junk (Siri). Haven't touch my iPad in 2 weeks. It's too much and I've been working in tech since the early 90s, all I want now is simplicity.
Android has voice dictation too hasn't it ? Plus it has to serve up all those mobile ads, so it might still use more data though not to the user's benefit.
If all else fails, immortality can always be assured by spectacular error.
I have a 4S and use the same amount of data as I did with my 3G, which isn't much at all. Less than a gig per month.
I do use Siri as well, mostly when driving.
Gone!
The SprintUsers site had an interesting commentary regarding a recent WSJ article on Hesse:
http://www.sprintusers.com/could-hesse-lose-his-job
Today’s Wall Street Journal has a rare, insider-rich piece targeting Hesse. A betting man would say his own board of directors had a lot to do with the story. No, no one on the board is quoted directly. But the picture the WSJ paints is certainly a flattering one of an engaged, hands-on board. They are served well by this story.
You don’t see this sort of knifing when an exec is secure in his job. It usually means board members are trying to distance themselves from a CEO’s plans gone wrong so they don’t get personally sued by shareholders. Or they’re getting ready to fire him.
Just last month, Sprint made an abortive attempt at a merger with MetroPCS, which was championed by Hesse but ultimately shot-down by the board. I have a feeling the company is going to experience a coup d'etat any day now. Well, whatever -- as long as my legacy SERO plan keeps working.
In the one corner Apple, in the other such winners as HTC, Motorolla, Nokia and Sony Ericsson. CEO's always get fired if they back the wrong horse, but he picked the one with the right odds.
If all else fails, immortality can always be assured by spectacular error.
This is how you utilize a first post?
What a waste.
.Net. It sounds like Mr. Hesse is actually doing that.
Now, when it comes to the topic at hand: Bill Gates and Steve Ballmer were fond of using the phrase "bet the company" on certain initiatives, such as
The higher the technology, the sharper that two-edged sword.
Same as others have already posted long time sprint user paid the early termination fee. Tired of waiting for them to get their act together. Bad decisions constantly....... Never using the money to upgrade their network properly. Funny thing is he talks about 4g that most people can't get on sprint and the iPhone isn't even 4g so its a bad comparison shows he is a fool. Get out while you can its a sinking ship...
The Apple crowd is by far the most vocal? In my college experience it was the Apple haters that were the most vocal.
My UID is prime... is yours?
Yes, but AFAIK Android's voice dictation is done on the phone so it doesn't use any bandwidth. Making the ads even more of a problem. This is partly due to stupid users (the same kind that get their PCs infected) and partly to Google. If they'd offer other payment methods than credit cards a lot more people would buy ad free apps. But then again, maybe it's more profitable to Google to serve ads instead of selling apps...