Sprint iPhone users are more loyal to the carrier, and actually consume less data in some cases, says CEO Dan Hesse. The executive recently defended his company’s agreement to spend $15.5 billion on iPhones over four years in an interview with the GSMA’s Mobile World Live blog. “Subsidises are heavy for the iPhone. This is the reason why a high percentage of new customers is important,” he comments. “But iPhone customers have a lower level of churn and they actually use less data on average than a high-end 4G Android device. So from a cost point of view and a customer lifetime value perspective. They’re more profitable than the average smartphone customer.”
He adds that iPhone sales have so far “exceeded expectations,” and that the device is luring some people away from AT&T and Verizon, even though all three companies sell it. “Four out of every 10 iPhones we sold [in Q4] are for new customers. That’s roughly double the rate of either of our competitors, so we’re pulling a lot of customers from our competitors.”
Sprint’s unlimited data option is allegedly the major draw. “The marriage made in heaven is unlimited plus the iPhone,” says Hesse. “My plan is to continue for as long as we can, hopefully forever. The customers have spoken very clearly on this: they like simplicity and unlimited. It’s a differentiator in the market.”
