Sprint shares tumble on iPhone cost concerns

“Sprint Nextel shares fell as much as 17 percent on Tuesday as investors worried about the cost of selling the Apple Inc iPhone on top of its plans to upgrade its network and its debt obligations,” Sinead Carew reports for Reuters.

“The decline followed a 10 percent dive in Sprint’s stock on Monday after a Wall Street Journal report that the money-losing company will have to pay Apple $20 billion over the next four years and will lose money on the iPhone until 2014,” Carew reports. “The Journal story, which cited unnamed sources, said Sprint has committed to buy 30.5 million iPhones from Apple in the next four years.”

Carew reports, “Sprint shares recovered slightly but were still down 9 percent at $2.48 in late-morning trading on the New York Stock Exchange. They touched a low of $2.25 earlier.”

Read more in the full article here.


  1. Those hedge fund managers are a strange breed. They’ve got some weird views about anything Apple. They’re constantly claiming that Apple has no long-term growth potential based on some theory that a company can only grow but so large before growth stops almost completely.

    Now they’re targeting Sprint because Sprint finally has a chance to compete with the major carriers with the iPhone, but they’re worried that Sprint will somehow fail to make money back quickly enough. Since it may take a couple of years for Sprint to break even, so I’m sure that’s why the hedge fund managers are punishing Sprint. For hedge fund managers, if a company can’t turn profits quickly, then they’ll show their discontent by punishing the stock. Hedge funds are ruining the stock market by having so much clout and damaging companies that have long-term strategies.

  2. I have some questions.first,is the i phone 5 coming out at all because i want to get it?second,how much will it cost?third,is it coming to Sprint?forth,when can i get the iphone 5 from sprint?lastly when will sprint get the iphone 5?
    I need some answers fast.i am trying to persuade my daddy to buy me one.help

  3. And Sprint finally close up 4.74% so that is a big win, not a loss. People jump to conclusions. AAPL was down $17 at one point. I got me another 100 shares at $359.64 but the turn closed at $372.50 and so on those few shares I made $1,286. I have made 10 lots prior to this dating back to last October and every one of those are in the black to average gain of 19%. I also bought 1,000 Sprint at 11 AM for $2.52 so there is another $340. At least on paper. Both will go up for sure. Get on board.

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