Sprint Nextel’s Q4 results showed an increase in revenue as well as losses
Sprint Nextel Corp., 3rd largest cellphone carrier in U.S., has posted wider losses in its fourth quarter results. The company has reported that these losses are the result of the costly iPhone entry in the company’s sale. Although the company has sold almost 2 million iPhones in the previous year but it has lost more than $1 billion as a result of costly subsidies.
According to Apple Inc., 37 million iPhones were sold during the quarter in which 7.6 million units were sold by AT&T and 4.2 million were sold by Verizon, meaning U.S. accounts for 37% of iPhones sales.
Sprint Nextel reported, on Wednesday, $1.3 billion of net losses or 43 cents of downfall in share. This loss is more than the previous year’s same quarter, which was $929 million. However, according to the company the revenue went up 5% to $8.7 billion i.e. slightly higher than The Wall Street Expectations of $8.69 billion, according to Thomson Reuters I/B/E/S.
Sprint reported to serve the highest number of customers, i.e. 55 million customers, in its history. Moreover, 1.6 million total net subscribers were added in the quarter i.e. best since 2005.
“Our strong fourth quarter performance illustrates the power of matching iconic devices like the iPhone with our simple, unlimited plans and industry-leading customer experience,” said Dan Hesse, Sprint CEO, who is hopeful about the future of the company. “During the past year, Sprint added more than 5 million net new customers and grew wireless service revenue by more than 5 percent, including 17 percent for the Sprint platform. This momentum gives us confidence as we execute our Network Vision upgrade and 4G LTE roll-out.”
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