Sprint announced their first quarter results today, seeing an operating loss of $255 million, and a net loss of $863 million, but enjoyed 1.5 million iPhone sales, 44% of which were new customers. Last quarter, Sprint sold 1.8 million iPhones with a similar proportion of new additions. Seeing as Sprint added a net of 1 million new subscribers total in Q1 2012, 44% is a pretty significant portion. By comparison, AT&T enjoyed 4.3 million iPhone sales, while Verizon sold 3.2 million. That brings U.S. iPhone sales for the first quarter of 2012 to roughly 9 million. Here are Sprint's financial highlights.
Sprint says that despite the customers the iPhone is bringing in, hardware subsidies are hitting them hard.
Sales expenses increased year-over-year primarily due to iPhone point-of- sale discounts (subsidy) for devices directly sold by the manufacturer to indirect dealers in which Sprint does not take device title, as well as higher postpaid gross additions. The impact from the iPhone was partially offset by improvements in sales channel mix with a larger portion of activations coming from direct retail channels.
Even though this quarter's loss was steeper than the $439 million Sprint lost in the first quarter of last year, it's not as bad as many analysts expected. Sprint launching their 4G network will be interesting, and set the stage for their support of an LTE-enabled iPhone 5 in the fall, assuming of course that they'll be able to afford it.
Any Sprint iPhone customers in the house? Is the unlimited data keeping you happy, or are you thinking of switching?