Unless you've been living under a rock, you should know that Apple is close to unveiling their next trendsetting smartphone, the iPhone 5. And as we approach the expected date of the iPhone 5 reveal, we can also expect that more news will be coming in with regards to the much awaited device. If anyone can recall, there have been several reports that Apple has been planning to add another telecommunications company that will carry the iPhone in addition to AT&T and Verizon. And one such carrier that is long rumored to partner with Apple is Sprint Nextel.
According to a report by The Wall Street Journal, Sprint Nextel Corp. will start selling Apple's iPhone, once the next generation version hits the market in mid-October. The information source is said to be someone who's allegedly familiar with the situation. This particular partnership should be instrumental not only in filling the hole that's present with Sprint's U.S. carrier lineup but it should also allow Apple to open yet another income stream.
Sprint Nextel had about 52 million subscribers by the end of the second quarter, significantly trailing behind Verizon with 106 million and AT&T with 99 million subscribers. Sprint blames the "competitive headwinds" of its major competitors for such a huge gap in subscribers. As you all know, both Verizon and AT&T have been offering the iPhone for the entirety of the year's first half.
So landing this partnership with Apple is indeed a successful move for Sprint. Just the mere revelation of the deal resulted for the company's stocks to increase. The addition of the iPhone to Sprint's lineup will most definitely help in retaining many of its subscribers who have plans for upgrading. To say that Sprint needs the iPhone would be a huge understatement.
And of course, this particular partnership is not only beneficial for Sprint but for Apple as well. As you all know, the iPhone being available only in two carriers (albeit the top two largest) is still considered to be a significant limitation with regards to reaching a larger portion of the market. Now with Sprint, the third largest U.S. carrier being on board, the iPhone market should now be accessible to more subscribers.
Lately, Apple seems to be taking measures in order to shake the iPhone's reputation as a luxury item. We have of course been hearing about reports that Apple is planning to release a low-end iPhone that will be marketed towards developing markets. And now that the iPhone will be made available to one more carrier, those who have been holding out to buy an iPhone will certainly be given something to think about.
It's a win-win situation for both parties. Sprint will be able to capitalize on the hype surrounding the iPhone 5 which could only yield impressive sales. On the other hand with Sprint joining in, Apple opens yet another sales channel which will most definitely drive more sales for the iPhone 5.
This report however indicates that Sprint will begin selling the iPhone 5 in mid-October, which also applies to Verizon and AT&T as well. So we could be looking at a mid-October iPhone 5 release as opposed to largely expected September release date. [via TheWSJ]Contact Us for News Tips, Corrections and Feedback