Click to Skip Ad
Closing in...
  1. Prime Day Deals 2021
    04:05 Deals

    Prime Day deals 2021: See hundreds of Amazon’s best deals right here

  2. Prime Day Nintendo Switch Deals
    12:27 Deals

    Anyone with a Nintendo Switch needs to see this one Prime Day deal

  3. Best Prime Day TV Deals
    12:22 Deals

    Best Prime Day TV deals: Samsung, Sony, Toshiba, and more

  4. Prime Day Deals
    11:01 Deals

    Check these early Prime Day deals with prices so low, it’s like Amazon made a mistak…

  5. Wireless Borescope Camera
    10:10 Deals

    Prime Day: Get the wireless camera that lets your phone see anywhere for just $29

After $15.5 billion splurge on iPhone, Sprint may need $7 billion in new financing

October 27th, 2011 at 7:30 PM

In addition to the costs needed to upgrade its network to LTE by next year, Sprint said earlier this week that it is paying Apple $15.5 billion during the next four years for the iPhone. That huge cost means the carrier may need an additional $7 billion in financing to help boost liquidity, Reuters said on Thursday. Reportedly, Sprint is seeking $3 billion of the additional funds from vendor deals and an additional $4 billion in refinanced debt. “[The] iPhone has an expensive contract, but it is worth every penny,” Sprint CEO Dan Hesse said on a recent conference call in reference to the money it pays Apple on each iPhone phone. Sprint pays Apple a subsidy fee that is 40% larger than any other handset it sells, but the carrier also said the iPhone has been the fastest-selling handset it has ever launched. On Wednesday, Sprint said it was negotiating a new network sharing deal with Clearwire that would extend beyond 2012. Several analysts think Sprint may be trying to juggle too much at once, however. “They’re betting the house on two things at the same time,” Mizuho analyst Michael Nelson told Reuters. “If they pull it off, great. If they don’t, their financial performance would get materially worse, and they could have significant liquidity risks.”


Popular News