Tuesday, October 4, 2011

Sprint just put itself out of business

Facts:

Sprint has agreed to purchase 30 million iPhones over the next 4 years

Sprint currently has around 50 millions customers

Assumptions:


50% of wireless subscribers use smartphone (google search)

85% of sprint Smartphones have been android users for 2 years. (assumption)

Opinions:


Assuming no growth in subscribers (it has lost for the last three years) and no growth in smartphone users(not likely, but assumption) 

Sprint has to sell 30 million iPhones to 25 million smartphone users over the next 4 years.  To put it simply, Sprint has to convince 60% of its subscribers to purchase an iPhone 4s immediately.   Then in two years they have to convince them all to buy again.  Current iPhone market-share is 28% and most of those are on AT&T

The problem is, have you ever tried to convince an Android user to use an iPhone, or visa versa?   Its not easy, its nearly impossible.

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