“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.”
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