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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.”'"
They pay more and use less? What a shocker! Who would have thought?
Steve Jobs.
Nothing here... So... SHOOO!!!
They are also more attractive and have great personalities
Maybe they use less data because iPhone apps aren't constantly uploading their gps coordinates and downloading ads. If you look at mobile web traffic, iOS beats android. Even when you factor out the iPad.
Do you even lift?
These aren't the 'roids you're looking for.
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.
Can he defend their WiMax flub? Can he defend contracting with a company that has a non-existant LTE solution?
Keep the Classic Slashdot.
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.
I recently canceled Sprint and paid the ETF to do so. That's after having Sprint for nearly 10 years. I got an iPhone 4S with Straight Talk ( MVNO that uses AT&T's network). Why? Because I wanted a data service that works. With Sprint, I was frequently on 1X. Even when I was on 3G, the speeds were crap. Sprint bit off more than they can chew with the iPhone. WiMax was a bust. Nextel customers are leaving in droves and their Network Vision plan may well be the final nail in the coffin.
If you wany an apples to apples comparison, you should, at the very least, compare mobile web traffic from iOS to mobile web traffic from high-end 4G Android device - which is what the CEO was talking. And no one seems to ever announce this sort of data.
Stop with the fanboism. Seriously.
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.
Totally forgot about RIM, but then who hasn't ;-)
If all else fails, immortality can always be assured by spectacular error.
A contrived negative Apple comment. Who would have thought?
Dude, the GP just defined Apple's entire business model. Seriously, that's it in a nutshell.
Furthermore, like it or not, Apple is deserving of much approbation, far more than they get on this site.
The higher the technology, the sharper that two-edged sword.
Women don't fiind endless babble about how terrible the iPhone is to be a turn on.
That's odd: most Android people I know (myself included) don't waste much time in conversation discussing phones, especially with members of the opposite sex, much less something such as the iPhone that we simply could not care less about. It's iUser arrogance to believe that all of us Android users care about the iPhone, feel threatened by it in some way. We don't, and we look down at people who so willingly allow themselves to be technologically shackled. But hey, to each their own.
Matter of established fact, it's the Apple crowd that has always been by far the most vocal. I've been in this business for a long time, before there was an Apple ][. And, since the advent of the Mac, and Jobs' deliberate efforts to encourage class envy to increase sales, it's always been the Apple people that are constantly deriding those using competing products. In the old days, tell a Mac user that his machine is limited because it didn't have any peripheral slots and he would say, "Why would you need them?" Today, ask an iPhone user why his phone won't support tethering, why it is limited to a single GUI, why it won't allow installation of non-Market apps, and he'll say, "Why would you want to do that?" Nothing changes but their underwear, I guess.
I dislike Apple intensely because at one point (decades ago) I made my living coding for Apple systems, and Apple truly was about freedom, openness, and the spirit of the personal computing revolution. Granted, that was Wozniak's influence: Jobs always was a dick. But today they pay lip service to freedom while doing their level best to turn you into a mere consumer of paid media, bought solely from Apple. No thanks.
The higher the technology, the sharper that two-edged sword.
That was a very long rebuttal to a criticism of Android fans who endlessly babble about how they hate Apple.
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?
'No one ever went broke underestimating the intelligence of the American public' - Henry Mencken
I am TheRaven on Soylent News
What I don't get is why iFanbois have such a hard time accepting a HELL of a lot of their buzz is branding and marketing. Not saying they don't build good products, because they do, but while Air Jordan is a nice shoe it ain't the leather that causes fistfights on release day, its the brand. Hell be happy, your favorite company has a brand like Prada and Porsche that people will pay assraping prices for that half eaten Apple logo.
Jobs spent most of his life devoted to building that brand into one of the most recognizable on the planet, right up there with Coca Cola and Disney so just accept it, okay? I mean you don't see Ferrari owners going "Waah but its a good value for the money waah!" because guess what? its not. Its a bad ass uberpowerful exotic which you are damned well gonna pay for that power and just because the telecos are willing to eat billions in subsidies in the hopes of using an Apple device to lock customers into multiyear contracts so that Joe the plumber can have an iPhone doesn't magically make them priced for the masses, it just means the cost of the actual device is hidden.
but in the end it all comes down to branding and I sincerely doubt you'd see the lines or selling out you see with something like the iPad if it weren't for every celeb on the planet being seen with one. Apple is "hip" and "cool" and "THE" thing to have so people want one. Jobs spent years building that up and to just ignore it ignores the man's life's work. Is that REALLY what you want to do? To belittle what was arguably one of the best marketing men in history? Give the man the credit he is due folks, by the time the man checked out his company was the most wealthy on the planet and his products went from being at death's door and looked down upon when he came back to being THE elite brand and the man was able to do that in less than a decade. give the guy his props.
ACs don't waste your time replying, your posts are never seen by me.