Posted by: BMAN | June 18, 2008

Sprint to sell iPhone imitation for $130: Death of the iPhone?

It has been months and sprint shares continue to hemorrhage, from $22 a share to about $5–what a shame.

Customers keep on fleeing from the worst wireless company in the country. Can this company be saved? What is Dan Hesse doing? Well, I guess he has been seen scouting for better suppliers and partners. But where is Dan Hesse going to get better partners from? The industry has not changed? If Dan Hesse or Gary former CEO couldn’t do it a year ago what makes him think he can do it today?

To address the stock price loss, sprint has to stop the steep customer loss, how, you ask? Get an iPhone imitation–a phone with a touch screen; and I guess they have done it.

Sprint is patnering with Samsung Electronics, maker of touch-screen Instinct, in hopes this hand set will help turn around its fortunes. In addition sprint plans to spend $100 million to market the phone, money the company I believe does not have, three times the marketing budget for any phone release Sprint has done in 2007.

Then question I have for Dan Hesse is, Will this work?

Think about this for a moment, Sprint has a “crappy” network. This is the root of all its problems and it (Sprint) knows it, but CEO has chosen to solve this problem backwards, and down play this problem.

To add an insult to the wound, the instinct is “supposed” to compete with the new, high-speed iPhone model that is supposed to go on sale July 11th for $199.

But why should I buy the Samsung instinct? I pay $230 for inferior quality then have to wait for $100 mail in rebate, and get locked in for 2 years on America’s worst cell phone network? Why?

All in all, whether customers will line up at the doors of Sprint stores remains to be seen, but one thing I know for sure, you will not see me there!

STOCKS

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  1. [...] unknown wrote an interesting post today onHere’s a quick excerpt… and down play this problem. To add an insult to the wound, the instinct is “supposed” to compete with the new, high-speed iPhone model that is supposed to go on sale July 11th for $199. But why should I buy the Samsung instinct? … [...]


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