Sprint Corporation (S) Places Bet on IPhone 6/6 Plus Launch for Turn Around in Fortunes


Sprint Corporation (NYSE:S) named Marcelo Claure as their new CEO in August. He replaced long-time CEO of the company, Dan Hesse, who served the organization from Dec 2007. Hesse took this company from a start-up to a telecommunication giant. CNBC’s David Faber talked to Sprint’s new CEO, Claure in CNBC about his plans for the company’s future growth and iPhone 6 launch.

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It was expected by many that Sprint Corporation (NYSE:S) would go for a merger with T-Mobile US Inc (NYSE:TMUC), but that did not materialize.  Due to this, Sprint’s stock price went tumbling down by 18%, under $6 per share.  Claure is currently facing the uphill task of turning around the company’s fortunes.

Sprint Corporation (NYSE:S) is facing a continuous reduction of subscribers. They have lost around 220,000 customers in total. Faber pointed out that the company is placing its bet on iPhone 6 and 6 Plus launch to at least bring back the subscriber base to level terms.

Claure thinks that the iPhone 6 and 6 Plus might be successful launch not only for Apple Inc. (NASDAQ:AAPL), but also for Sprint Corporation (NYSE:S). He mentioned that they are the only carrier providing their own rate plan for iPhone. He said that they made the purchase of iPhone 6 and 6 Plus very simple.

“[…] We made it simple. $50 only with an iPhone 6. Talk all you want. Text all you want and go out with all the data that you want. So that’s a statement we are making, because we feel very comfortable that this is going to be a great phone,” Claure said about iPhone unlimited plan.

Sprint Corporation (NYSE:S) has also introduced ‘iPhone for life’ plan. Claure said that they are guaranteeing use for just $20 a month, with a possibility of upgrading to another iPhone, once in 2 years. He added that the combination of $50 per month for unlimited usage and $20 per month for ‘iPhone for life’ could give a great iPhone experience to the users.

He mentioned that the combined plan could save thousands of dollars to users when compared to the competition.

“[…] Before you commit to anything, look at the Sprint, add two basic things, […] you have your service and you have your phone. Add it together and we are in business to make sure that we give you the best bargain,” Claure mentioned.

One of Sprint Corporation (NYSE:S)’s shareholders is Paulson & Co., led by John Paulson. As of 30 June, 2014, they hold around 64 million company shares.

Disclosure: None

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