United States carrier Sprint, the nation’s third-largest wireless telecommunications network, announced today holiday quarter earnings containing a couple interesting tidbits related to Apple’s iPhone, which helped bring in most of its new customers. Sprint reportedly ponied up $20 billion to land Apple’s iconic smartphone last October, calling the handset launch in today’s statement “successful.”
Forty percent of Sprint’s 1.8 million iPhone sales in the fourth quarter were to new customers.
This means some 720,000 Sprint iPhones went into the hands of new customers—once again highlighting Apple device’s proven ability to attract new consumers. Sprint only added 539,000 net additions to the postpaid base, so it would likely have lost around 200,000 customers without the iPhone in its lineup.
According to Sprint’s internal estimates, high costs associated with subsidizing the iPhone —combined with the impact of iPhone and Network Vision costs— are to blame for wider than expected short term loss, which reached an astounding $1.3 billion in Q4 2011 and $2.9 billion for 2011. These factors also reduced fourth-quarter adjusted operating income before depreciation and amortization (OIBDA) of $842 million by approximately $684 million.
Reuters reported in October 2011 that Sprint paid about 40 percent higher subsidy to Apple than the industry average, amounting to $200 more per device.
Sprint CEO Dan Hesse has some nice words for Apple’s phone: