While this is a long-shot example, let’s place this on a larger spectrum. Say, for example, my lemonade stand is now called Sprint. My competitors, A and B, are Verizon and AT&T. Obviously, the topic is not actually centered on lemonade, but 4G services. Sprint has done just what is implied above: they have declared they will be able to catch-up to Verizon and AT&T in terms of 4G service as long as they receive more income. They don’t have the money to spend the way they would like; however, Sprint Chief Financial Officer Joey Euteneuer said, “liquidity should begin to improve in 2014 once the roll-out is complete” (Goldman, 2011).
The question remains: is this a bargain worth investing in? Given their track record, is Sprint the company to trust in a situation like this? In April of this year, it was said that Sprint still lost money despite their adding 1.1 million new customers. Goldman states that a major reason Sprint is losing money is because they are not selling the iPhone 4 (2011). If one runs a search on Sprint, it would be evident that they have lost money AND customers the past three years. Can the iPhone 4 really be responsible for this? I mean, did it come out in 2008 and they still aren’t selling it?
What Sprint is attempting to do is courageous. Their business has not been able to stand up to mobile giants such as Verizon Wireless and AT&T. The fact that they are not ready to “throw in the towel” is admirable, but foolish. Or is it? The adage declares “it takes money to make money.” Perhaps if given the opportunity, Sprint will rise up and take down the competition. Take notice of the graph: Sprint is down from Verizon but up from AT&T. If customers want it, who are we to say no?
Ultimately, the world of 4G mobile coverage could be rocked in the coming months. Sprint is the third giant in wireless connectivity; if they fall out, where does that leave us? Goldman (2011) agrees that Sprint “has struggled to add new customers” but are working diligently on the problem. This little lemonade stand may be down, but it’s not out.
This is an intriguing concept: offering to deliver the goods if the money is put up first. Isn't this the way America works? However, I do not like the feel of this situation. One concern I have for Sprint is their coverage. I had AT&T (loved them), but when I moved to northwest North Dakota, there was no coverage from this provider. I ended up switching to Verizon. I wonder if Sprint needs to look at broadening its coverage to attract new customers. Maybe that is a way to "receive more income". I know in this area Verizon is king.
ReplyDeleteI think the fact that Sprint is not carrying iPhones is probably hurting them. We all know how the iPhone has revolutionized the cellphone industry. I am not sure if Sprint will be able to come out of their funk or not but it will be interesting to see what happens. Thanks for sharing.
ReplyDeleteSince they have not kept up with the iPhone 4 and cannot keep up with that phone I do not think it would be a good investment. I do not like the fact that cell phone coverage is monopolized by TWO companies but sprint needs to do something WAYY new to keep up. I mean the iPhone is no fad. It is a new way of living technologically. And it is not stopping anytime soon. I feel like the Iphone 4s isn’t as revolutionary as anyone wanted it to be BUT people are still gunna buy it brag about it and keep it since it has enough upgrades to still be new but nothing for it to be revolutionary. But still with that hiccup Apple rules the world and will do so until someone makes something better. However i feel Apple will rule technology in phone for a while.
ReplyDeleteThe iPhone 4 cannot be the reason that they are losing money. The idea that one phone determines the profit of a company seems ridiculous. However, I am willing to accept that it may be probable. Let us be real though. Sprint has lost money the last three years so the iPhone 4 cannot solely be the cause. There has to be something else Sprint is doing or isn’t doing. The idea of the fate of the company resting on one phone seems silly. I am obviously not in the phone business so my education about the subject is limited. This is why my opinion about the subject is just an opinion and nothing more. Great post Kyle!
ReplyDelete