Latest in 2012

Image credit:

Sprint's iPhone gamble isn't paying off as 2012 Q2 figures reveal $629 million operating loss

Share
Tweet
Share

Sponsored Links

Sprint's second quarter figures have arrived, showing that the company's billion-dollar gamble on the iPhone isn't working right now. While it sold 1.5 million Apple-branded handsets in the three month period (40 percent to new and postpaid customers), it recorded an operating loss of $629 million and a colossal net loss of $1.4 billion -- compared to an operating loss of $255 million and a net loss of $863 million in the first quarter. Operating revenues of $8.8 billion improved on those in the first quarter by a single percent -- mostly due to higher service fees from its wireless offerings. It's also grown its cash reserves, up from $128 million last quarter to $267 million today, and can point to 442,000 postpaid and 141,000 new prepaid subscribers pushing the company's customer base up to 56 million nationwide -- mentioning that 60 percent of former Nextel users chose to remain with Sprint during the enforced change.

The figures reveal that Sprint's eating around $782 million due to the shutdown of the Nextel platform and a further $184 million to end leases on antenna sites for the moribund network. It's also having to take a hit of $204 million due to its investment into infrastructure partner Clearwire. It's affirmed its $1 billion lending facility, contingent upon purchasing gear from Ericsson to help build its LTE network, which it aims to have installed in 12,000 sites by the end of the year. Of course, that purchase was prompted by the collapse of Philip Falcone's doomed LightSquared project, which caused the Now Network to lose $66 million in cash and its childhood innocence when it comes to trusting other people.

Update: Big Yellow also mentioned that it has no plans to adopt a shared data plan to follow AT&T and Verizon.

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Share
Tweet
Share

Popular on Engadget

After Math: Stand and Delivery

After Math: Stand and Delivery

View
Honda's Accord Hybrid is a value-packed sedan

Honda's Accord Hybrid is a value-packed sedan

View
NASA's InSight lander can finally dig a hole for its Mars heat probe

NASA's InSight lander can finally dig a hole for its Mars heat probe

View
Huawei wants to license its 5G tech to US telecoms

Huawei wants to license its 5G tech to US telecoms

View
Fossil's latest Wear OS watches now make calls using iPhones

Fossil's latest Wear OS watches now make calls using iPhones

View

From around the web

Page 1Page 1ear iconeye iconFill 23text filevr