updated 11:08 am EDT, Thu July 26, 2012
Compares with declines at AT&T, Verizon
Sprint has announced financial results for the June quarter, which included 1.5 million iPhone sales. The device is proving to be a significant factor in drawing in new customers to the US carrier, since 40 percent of the quarter's iPhone sales were from new post-paid subscribers. The company has held relatively steady in terms of performance; in the March quarter it likewise sold 1.5 million iPhones, of which 44 percent went to new subscribers.
Sprint's main rivals in the iPhone world, AT&T and Verizon, have by contrast seen declines. AT&T sold 3.7 million iPhones in the June quarter, a drop from 5.5 million in the previous one. Verizon sold 2.7 million units, slipping from 3.2 million. The shift may be attributable to any number of factors, such increased Android popularity, the iPhone arriving at more regional carriers, and/or people waiting for a next-generation iPhone in the fall.
In terms of general numbers, Sprint managed 56 million subscribers, but suffered a net loss of $1.4 billion, or a diluted net loss of 46 cents per share. Those figures are worse than in the March quarter, when the carrier was hit with an $847 million loss, or 28 cents per share. Much of that can be blamed on subsidies, since its net subsidy for wireless equipment grew to $1.5 billion, more than the $1.1 billion it saw in the same quarter last year. The iPhone is thought to be the main cause of the increase, since it has a higher subsidy rate than most smartphones.
That factor is also said to be an influence behind greater sales expenses, leading to an operating loss of $629 million. Sprint may consider it worthwhile in the long run however, since it added 442,000 post-paid subscribers, growth 68 percent higher than in the March quarter. Prior to getting the iPhone in October the carrier was on a long-term decline.