Why is Sprint offering attractive Apple iPhone 6 plans?



Sprint’s offering attractive unlimited and family plans

Earlier in this series, we discussed Sprint’s (S) struggles in the U.S. telecom industry. But lately, Sprint has introduced a few attractive plans to gain subscribers. In August, Sprint introduced a $60-per-month unlimited data, text, and voice plan. This plan is quite attractive. T-Mobile (TMUS) offers the same unlimited plan for $80 per month, while Verizon (VZ) and AT&T (T) don’t offer unlimited plans at all.

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A few days before this announcement, Sprint had also introduced a Family Share Pack plan for families that gives customers double high-speed data at a lower price than AT&T and Verizon. In September, Sprint started offering the unlimited plan for Apple’s (AAPL) iPhone 6 for $50 per month. Under its “iPhone for life” plan, the iPhone 6 would cost $20 per month for 24 months for a 16 GB model and the iPhone 6 Plus 16 GB model would cost $25 per month for 24 months.

Telecom postpaid subscribers additions

Sprint’s offering attractive plans to gain subscribers

Sprint is clearly underpricing its unlimited plans from T-Mobile and also undercutting the iPhone 6 device’s monthly cost from competitors. This aggressive strategy comes from Sprint’s renewed plans to gain net subscribers under its new CEO, Marcelo Claure.

As the chart above shows, Sprint lost 181,000 net postpaid subscribers last quarter. iPhone users tend to use more data. So targeting these users with unlimited plans is a clever strategy on Sprint’s part to gain subscribers.


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