According to the Wall Street Journal report Sprint is going to pay $20 billion to get its hands on iphone5.Sprint will purchase 30.5 million iphone5 over the next 4 years,costing the company nearly $20 billion.
Why sprint is buying iphones worth $20billion
Sprint is the No.3 U.S wireless carrier.Sprint has continuesly lost customers to other carriers,and accrording to the Sprint CEO Dan Hesse the top reason why customers leave is because of iphone.At present AT&T and Verizon Wireless are the only two U.S. carriers that currently sell the iPhone 4.
So as a turn around Sprint is betting on iphone5.It is not sure whether Apple would opt to give Sprint the exclusive rights to new iphone,even with such a big commitment.But if Apple gives Sprint the exclusive rights,Apples iPhone 5 will be available in U.S only with Sprint,which can really have a big impact,because at present As the third-largest carrier in the U.S., Sprint has a significantly lower base.
Although it is unlikely that iphone 5 exclusive would never happen,$20 billion in iphones sales is guaranteed because Sprint will buy 30.5 million
iphones even if sprint customers dont buy from them.
You can read the Wall Street Journal report here.