Sprint is paying Apple an iPhone subsidy that is 40% higher than it pays other mobile device manufacturers, reports Reuters.
Sprint said it will pay Apple an iPhone subsidy that is 40 percent higher, or $200 more per device, than the subsidies it pays for other phones. But the company's executives said it should be worth the extra cost as the device is bringing in new customers.
"IPhone has an expensive contract but is worth every penny," Chief Executive Officer Dan Hesse said.
Sprint estimates that upfront costs due to the iPhone will cut Q4 income by $500 to $700 million. Their income for the quarter was previously estimated at $1.1 billion.
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Sprint said it will pay Apple an iPhone subsidy that is 40 percent higher, or $200 more per device, than the subsidies it pays for other phones. But the company's executives said it should be worth the extra cost as the device is bringing in new customers.
"IPhone has an expensive contract but is worth every penny," Chief Executive Officer Dan Hesse said.
Sprint estimates that upfront costs due to the iPhone will cut Q4 income by $500 to $700 million. Their income for the quarter was previously estimated at $1.1 billion.
Read More