Sprint paid Apple $20 billion for 30.5 million iPhone units over the next four years as part of its deal with Apple to carry the coveted smartphone, reports the Wall Street Journal. It’s a massive gamble for Sprint, which sits in a precarious third place behind AT&T and Verizon Wireless, as the company will not turn a profit on the deal for years, even if things go as well as possible.
Rumors have long pointed to Sprint landing the iPhone this year, but few details about the deal have leaked into the press.
As if a $20 billion payment to Apple isn’t enough Sprint-iPhone news, a new rumor pushes the possibilities even further. According to BGR‘s Jonathan Gellar, Sprint may be the exclusive carrier of the iPhone 5, until next year. No, not the iPhone 4S, which is also said to be announced on Tuesday, but the actual iPhone 5, the “tear drop” device that will run on Sprint’s 4G WiMax network. AT&T and Verizon will carry the iPhone 4S immediately, and begin to carry an 4G LTE-compatible iPhone 5 early in 2012, Gellar speculates.
Gellar’s assessment is based upon information from a source he describes as “incredibly solid.” An iPhone 5 exclusivity deal would explain not only the reason why Sprint agreed to pay Apple $20 billion, he says, but also the reason why Apple would allow only Sprint to carry the iPhone 5 during the lucrative holiday season.
If you ask us, a Sprint-exclusive iPhone 5 seems incredibly unlikely. Of course, anything’s possible. But it would be very un-Apple-like to release its most-sought after iPhone ever only on Sprint (for now). There could easily be information to which we aren’t yet privy that could better explain why this deal would make sense for Apple. For now, however, we’re going to have to take this rumor with a hefty helping of salt. Fortunately, we’ll be able to wash it all down with the full scoop tomorrow, when Apple reveals its actual plans.
OMFG. this must hurt, I Want to see the Apple fans actually switch to sprint. I bet Steve Jobs will say some shit that Att is evil and now we switch to Sprint, and all you guys should switch too because I said so. This is the reason why iOS fails, one phone ever year, most likely on one provider like how they did that with att for what, 4 years?
Hmm somehow I don’t believe this one bit….
Android FTW
Noooooooo…. I will get on my knees and cry if Sprint has an exclusive deal. Ive been saving my iPhone upgrade for the past 5 months waiting for this day. My logic tells me that Apple would never make a deal this big, excluding two of the biggest cellphone companies and its customers. But my gut feeling is telling me that this article is right!! :O and my guts never fail me :S Im gonna be waiting anxiously tomorrow morning.
Noooooooo…. I will get on my knees and cry if Sprint has an exclusive deal. Ive been saving my iPhone upgrade for the past 5 months waiting for this day. My logic tells me that Apple would never make a deal this big, excluding two of the biggest cellphone companies and its customers. But my gut feeling is telling me that this article is right!! :O and my guts never fail me :S
Im gonna be waiting anxiously tomorrow morning.
It’s worse. There is no iPhone 5 with awesome new design. :( I’ll just have to buy a 4S cause i need a phone…
Bullshit
I went to LG Thrill after waiting for iphone news
This is a boatload of poop, my opinion. If this happened, Apple might go bankrupt in 2013.
I think you mean Sprint might go bankrupt. Apple will be laughing all the way to the bank.
Yes. But looking at the new iPhone, Apple, isn’t going to meet it’s expectations. Most pple should just keep their old iPhone 4s, and wait till the 5 come out. For 3GS, u pick.
Yeah but they will be carrying the 1st Generation version, big deal. I’ll wait for the next version from Verizon.
If true, would be a huge snub to iPhone’s oldest and most loyal customers on AT&T. I don’t believe they’d do it. It would see a huge number of AT&T upgraders flock to the Galaxy S2 instead.
Not a good idea! Too many people can’t pick up Sprint. I intend to get the next iPhone, but can’t get a Sprint!
Sprint hehehe hope they do pay 20 billion that way there will no longer be a sprint 6 mon after that deal
sprint is too weak to carry iphone 5 by themselves EXCLUSIVELY
I have to say that stepping backwards into carrier exclusivity instead of forwards into complete carrier indifference would be a disappointing turn of events for Apple. Hard to turn the money away, especially if only until early 2012, but I much prefer a world less run by carrier, with full consumer choice of hardware and network.