Sprint is paying a lot to carry Apple’s iPhone — up to a $15.5 billion subsidy over four years.
CEO Dan Hesse remains confident that such a hefty price tag is worth it. During the company’s recent annual shareholders meeting, he said that “carrying the iPhone will be quite profitable,” even if it takes a few more years to see positive financial results.
“We believe in the long term… And over time we will make more money on iPhone customers than we will on other customers,” Hesse explained during the meeting.
Because of pressure from shareholders, Hesse cut his compensation package by $3.2 million this year.
“If Sprint’s LTE network launches as planned this year, it will help alleviate at least some of the problems the company has faced and give Hesse time to make good on his iPhone promises,” suggests The Verge.
No Comments Yet
You can be the first to comment!
Leave a comment
You must be logged in to post a comment.