OMG, Big, Big Blow to Android Phones; Sprint Buying 30.5m iPhones Worth $20 billion

At our advanced age, very little surprises or excites us any more.

Hell, even the sight of a Bollywood starlet in the buff (ahem, the Photoshopped ones) can excite no more than an Ah from us.

But there’s some news that still has the power to jolt us out of our chair.

Like for instance the report in the Wall Street Journal that the struggling U.S. mobile carrier Sprint has contracted with Apple to buy 30.5 million iPhones valued at about $20 billion over the next four years.

Yes, you read that right.

No typos.

30.5 million iPhones for $20 billion at current prices.

If the Journal story is accurate, Sprint will be the third U.S. carrier to offer the popular iPhone to consumers.

Sprint’s larger rivals AT&T and Verizon already sell the iPhone.

Apparently, the absence of an iPhone in its portfolio had been a gaping hole and a major factor in customers abandoning it for rival carriers. The Journal has calculated that the Sprint stock has lost 80% of its stock value since the iPhone debuted in June 2007.

Sprint does not expect to make a profit on the iPhone deal until 2014.

Also, it seems Sprint is obligated to contractually buy the iPhones irrespective of whether it can ultimately sell them to consumers. A big risk there if some problem crops up with the iPhone or rivals put out a better device.

Unless you were hiding under a rock, you know that Apple will announce the next version of its iPhone tomorrow.

Blow to Android

Although Google’s Android software has a bigger market share in smartphones, the iPhone is the single largest selling smartphone brand.

Android phones are sold by multiple vendors.

Sprint’s deal with Apple is an indication that the recession notwithstanding demand for the iPhone remains strong.

Recent surveys have shown strong consumer satisfaction with their iPhones.

The deal is a blow to Android given that the huge value of the iPhone deal will require Sprint to make significant commitment to pushing the iPhone to customers, inevitably at the expense of Android phones.

4 Responses to "OMG, Big, Big Blow to Android Phones; Sprint Buying 30.5m iPhones Worth $20 billion"

  1. rama dasa   October 3, 2011 at 8:01 pm

    I was on SI this afternoon in class and the babe that sits next to me was constantly looking at the computer I was on to see what the hell was so damned funny (I couldnt contain myself while reading the movie reviews!), me thinks she likes SI! Responds:

    More importantly, does she like you? 😉

    • rama dasa   October 3, 2011 at 8:07 pm

      well she accepted my invitation for lunch tommoro in the crapateria,so I think she must have some interest in me,also she never complains when I sit close to her in class,like Shahid Kapoor on Vidya Balan close! Responds:

      Well, do let us know how Close Encounters of the Crapateria Kind goes!

      Vidya Balan with Shahid Kapoor is almost incest. 😉 She looks like his mother!

      • rama dasa   October 3, 2011 at 9:08 pm

        off topic:I was on the Grand Mufti of Saudia Arabia’s site this evening(dont ask why!) and apparently sex outside of marriage,in Saudia Arabia, can be commited not just through casual lunch dates but simply watching TV!

        looks like Sony,Samsung ect. wont have much business over there! Responds:

        Bet a date with a camel is excluded from the Saudi Fatwa. 😉

        F*king whacko nation!

  2. Aswin_Kini   October 4, 2011 at 3:00 am

    The first impression I got from your post is that Apple just extended its monopoly via its deal with Sprint thereby establishing complete MONOPOLY over the market. While I am happy for Apple, as Apple products are the best in quality, I just hope that Apple does not go the Microsoft way and take its consumers for granted.

    As they say, Power corrupts and Absolute Power Corrupts Completely. The same goes for Monopoly. Once you are the market leader and there is light years of distance between you and the second best player in the market, you tend to cool your heels, take it easy, compromise on quality and do all other silly things!!!!!

    Pray that Apple continues to atleast retain its quality irrespective of its market share. As for Android phone makers, they need their maker to perform a miracle to save them from the rout. Responds:

    All monopolies shaft their customers.

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