The impact of iPhones and of Apple services on carriers' profitability has been much discussed. Analysts pointed out that Apple drives a hard bargain every time the company releases a new product and the carriers have to concede a part of their profits to convince the Cupertino officials to get onboard.
Now, Sprint CEO Dan Hesse revealed that iPhones are actually more profitable than their high-end Android counterparts. "iPhone customers have a lower level of churn, and they actually use less data on average than a high-end, 4G Android device.
So from a cost point of view and a customer lifetime value perspective they're more profitable than the average smartphone customer," explained Dan Hesse.
Moreover, Apple's smartphones are riding on a wave of success and as they attract massive number of users, iPhones bringing heavy subsidies to the carriers. For Sprint, this is good news.
Last year, Sprint was willing to spend $20 million to sign the deal with Apple for the latest iPhone. At the time, Sprint promised to sell 30 million iPhones and now it seems that this was a good deal.