Sprint CEO Dan Hesse mentioned in a latest Mobile World Live interview that iPhone customers are more profitable for the company because they utilize less data than Android customers. “iPhone users have a lower level of churn, and they basically use less data normally than a high-end, 4G Android unit,” said the executive. So from a cost point of view and a user life time cost perspective. They’re more profitable than the average smart phone user.”
Hesse mentioned that iPhone customers also bring the company a few serious subsidies, which are yet another major part of how the carrier determines the iPhone’s effect on its bottom line. Sprint spent a claimed $20 million to bring the iPhone onboard last fall. Other terms of the deal apparently included Sprint’s buying 30 million iPhone models. In yesterday’s interview, Hesse mentioned that gamble has paid off. In the last couple of months of 2011, he mentioned, “Four out of every 10 iPhones we sold are for fresh users. That’s around double the level of either of our rivals, so we’re pulling plenty of users from our rivals,” he concluded.
A few weeks ago, the company claimed it sold 1.8 million iPhones during the 4th quarter of 2011. The company reported 1.6 million fresh customers during the last quarter of 2012, 539,000 of which were under contract. Altogether, the carrier serves 55 million users. Early during the iPhone’s debut time at Sprint, the company was plagued with issues of sluggish data speeds for the fresh smart phone.