iPhone 5 Rumor: Sprint Paid $20 Billion For Exclusive Release

If rumor is true, Sprint loses on deal until 2014

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There have been some whopping iPhone 5 related rumors the past few months, but if this turns out to be true it will dwarf them all. According to BRG.com, a source has confirmed that Sprint will purchase $20 billion worth of iPhones over the next four years. Which equates to around 30 million iPhones.

Sprint iPhone 5 exclusive

The reason for the mammoth spending is it would provide Sprint an exclusive launch of the iPhone 5. Meaning, at the Apple event, on October 4th, Apple will be announcing the iPhone 4S for AT&T and Verizon, while Sprint will enjoy the initial release of iPhone 5 all by themselves. The article states an interesting caveat concerning the deal; the exclusivity would only run until the first quarter of next year.

Would a 3-4 month exclusive iPhone 5 launch be worth $20 billion?
Tell us.

Along with the news, BGR also added some interesting tech specs for the handset:

– Large 4-inch screen, similar to LG’s NOVA hi-res display
– 32GB storage
– Slightly larger design, but skinnier and a larger battery

As with all iPhone 5 rumors, this is all speculation and trusting that someone’s “inside source” is correct. If it turns out to be true, this has the potential for a huge shake-up in the mobile world. Will the exclusive release for a few months be enough to make up a $20 billion paycheck? A transaction that BGR states would lose them money until 2014.

iPhone 5 Rumor: Sprint Paid $20 Billion For Exclusive Release
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  • http://www.he-shi.eu/ ChrisMc

    umm $20,000,000,000 / 30,000,000 units = $667 per unit…. surely not?

    • http://www.PlacesToEatOkay.com Steven

      I think you’re right as well that somebody needs to check their math. I could see Sprint paying at most $200-$300 per unit wholesale and then offer them at about $500, with a 50% discount for people that sign up for a 2yr contract, and maybe another $50 if they order online. Many cell phone service providers do exactly that, make up for not profiting on the sale of a phone by making a person sign up for a contract. Considering that sprint starts out with an unlimited plan for data, voice, and text, for about $100 a month, the customer is on the hook for about $2400 over the course of the next 2 years.

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