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Sprint Stocks Tumble Amidst Reports of $20 Billion iPhone Commitment

Soon after it was reported that Sprint has committed to buy $20 billion worth of iPhones from Apple, its share price fell by 10 percent.

The US wireless carrier has had a troubled year so far, with its stocks falling by more than 35 percent as it struggles to compete with rivals AT&T and Verizon Wireless, both of which are licensed to sell the iPhone.

According to Business Week, Sprint has committed to buy 30.5 million iPhone devices from Apple which comes out to be roughly around $20 billion.

As of now, the deal is bearing down hard on Sprint, but if the gamble pays out, the company will catapult to its former glory and give fitting competition to AT&T and Verizon.

Citing sources familiar with the matter, the Wall Street Journal reported that the company is going to lose out on money in its deal with Apple till 2014. WSJ also revealed that Sprint plans to offer iPhone on an unlimited data plan in order to attract more customers and differentiate itself from competition.

Wireless carriers sell smartphones on subsidised rates to customers and make money from the mobile phone services they offer including voice, text and data.