19
Jul
sprintlovesevo

While financial information may be a little outside the norm at AndroidPolice, this piece is pretty relevant. Deutsche Bank reiterated its “Buy” rating on Sprint this morning, based on Q2 expectations. The relevant part of their explanation:

Key reasons are the record-setting launch of the 4G EVO, which we believe resulted in 42% Year-over-Year growth in post paid gross adds, and further improvement in post paid churn [customer turnover] (2.05% est).

sprintlovesevo

They think the EVO 4G led to 42% YoY growth – that’s incredible. We have yet to see any sales estimates for the EVO, but a reputable analyst is set to release a report (and matching tool) sometime very soon that will estimate each handset’s market cap. It has to be a pretty big number to generate that much growth, though.

Similar news on Wall Street this morning (involving the iPhone 4):

Despite the strong growth momentum in delivering iPhones, we believe high marketing costs associated with the product (especially due to the heavy subsidy associated with iPhone 3G/3GS) is (sic) affecting earnings.

The takeaway is that the iPhone 4 is less profitable for AT&T than other phones because they have to pay a chunk of monthly service revenues to Apple (as I’ve said before, Apple makes way more profit on its products than its competitors). Still, I’m sure the volume of iPhone subscribers AT&T has makes up for the reduced profit they make off each one – after all, profit is profit, regardless of how big or small.

[Source: StreetInsider, Daily Markets]

Aaron Gingrich
Aaron is a geek who has always had a passion for technology. When not working or writing, he can be found spending time with his family, playing a game, or watching a movie.

  • John Doe

    Yah, now imagine what would have happened if they could have kept up with demand. I still haven't gone sprint because I can't get the $50 & 16% discount unless I purchase online.

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