Wednesday, October 30, 2013, 07:27 am PT (10:27 am ET)
Sprint sells 1.4 million iPhones in Q3, edges slightly into profitabilityDespite a net loss of more than 300,000 customers, Sprint backed its way into a $383 million profit for the fiscal third quarter of 2013 and posted strong sales of Apple's handsets.
America's third-largest wireless carrier by total subscribers, Sprint recovered from a net loss of more than $760 million in the year-ago quarter. Revenue per subscriber grew to a record $64.28 as smartphones continue to be a major sales driver for the carrier, accounting for 92 percent of devices moved to contract, or postpaid, customers.
Apple's iPhone continues to be a strong seller for Sprint, with 40 percent of the 1.4 million iPhones — the same number Sprint sold in the second quarter — sold going to new subscribers. The number accounts for 28 percent of the 5 million smartphones sold by Sprint in the quarter.
The outlook remains grim for the carrier, however, as it continues to hemorrhage cash and customers. The third quarter's $383 million profit was helped along by a one-time $1.4 billion gain from its investment in Clearwire, which came as part of July's $21.6 billion buyout by Japanese telecom company SoftBank.
The dismal numbers come as Sprint's chief rivals, Verizon and AT&T, posted subscriber increases of 927,000 and 363,000, respectively.
Additionally, Smaller carrier T-Mobile has begun to turn up the heat on Sprint, offering attractive new plans like free international roaming data and completing the build-out of its fourth-generation LTE network. T-Mobile covers 233 markets with LTE compared to Sprint's 230, according to CNET.
On Topic: iPhone
- Photos of supposed fully assembled 'iPhone 6' chassis surface
- Microscopic analysis, iOS 8 code point to new 4.7-inch 'iPhone 6' display resolutions
- Rumor: Apple's 'iPhone 6' may include faster 150Mbps LTE Advanced modem
- Sprint's new family plan brings doubles data, lures in users with low pricing
- RBC sees Apple selling upwards of 75M 'iPhone 6' units before end of 2014