Sprint CEO Hesse: We’re very happy with Apple iPhone, even though we won’t make a cent on it until 2015

“Sprint Nextel CEO Dan Hesse took a $3.25 million pay cut earlier this month, as penance for orchestrating the company’s pricey iPhone deal with Apple,” John Paczkowski reports for AllThingsD.

“Has outcry over the agreement — which will cost Sprint an estimated $15.5 billion over the next four years — soured him on it?” Paczkowski reports. “Not at all. ‘We’re very happy with it,’ Hesse said of Sprint’s deal with Apple, during the company’s annual shareholders meeting Tuesday. ‘Carrying the iPhone will be quite profitable.'”

Paczkowski reports, “But not for a few years, at least. By its own admission, Sprint won’t profit from the device until 2015.”

Read more in the full article here.

MacDailyNews Take: Considering the alternative – swimming in the toilet with T-Mobile USA – Sprint’s Hesse is right to be smiling over having the one and only iPhone.

Related articles:
Ontario Teachers’ Pension Plan to oppose CEO Hesse’s re-election to Sprint’s board – May 8, 2012
Sprint CEO to take pay cut as iPhone subsidies pinch – May 5, 2012
Apple and Sprint have already inked deal for potential LTE 4G iPhone – March 27, 2012
Sprint CEO Hesse defends decision to bet the company on Apple’s iPhone – March 21, 2012
Sprint obligated to buy at least $15.5 billion worth of iPhones from Apple, expects to buy more – February 27, 2012
Without Apple’s iPhone, T-Mobile USA continues to shed customers – February 23, 2012
The iPhone is (still) saving the mobile industry: Apple’s iPhone almost singlehandedly saved AT&T and Sprint – February 22, 2012
Sprint posts net loss but revenue gain on Apple iPhone; best quarterly subscriber gain in six years – February 8, 2012
Sprint customers line up in force as carrier gets its first Apple iPhone – October 15, 2011
Sprint reports best sales day in company history with launch of Apple iPhone 4S – October 14, 2011

6 Comments

  1. Hesse will go down as being one of the worst CEO’s in history. He was stupid to agree to that deal promising 15 Billion in sales over 4 years. Not to mention they’ll be the only iPhone provider with no LTE for the next iPhone launch!

    1. Hmmm, since you do not know the details of the contract, I would assume you are talking out of an external solid waste output orifice. ???

      Just a thought.

  2. Hesse is a CEO that is consumer centric. Like Apple, who is seeking the current iPad at a manufacturing cost loss, he is investing on the iPhone first for his subscribers and hopes to make profit in the future. He is providing iPhones for Sprint subscribers and with unlimited plans whereas T-mobile and others won’t.

  3. I say, come late to the party costs you more. And since we do not know any details except that they will not make wild profits off Apple for a while, I have to assume that they will be upgrading the network and have other expenses to cover first.

    Hmmm,, business 101.

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