Samsung Instinct
evilhomer said:
Sales should be. Frankly, there is not much else exciting going on in that device lineup.
Oh, plus the fact that they priced it so low to compete with the 2nd gen iPhone... Heck, that's cheap for a no feature flip phone. I wonder if that will cause Sprint to lose even more money having to drop it so low. That phone couldn't have been cheap to acquire.
Sprint will more than make up for the low price of the phone (assuming we're losing as much as you think) with the MRC that the phones require.
Please understand how the wireless industry works before you continue to comment.
I do understand the wireless business and how it profits from phone subsidies. Also, I follow the industry publications quite closely. All of which still report huge losses for Sprint.
If you think it's the MRC on the Instinct that is going to stop MILLIONS in quarterly losses and customer defects it is YOU who does not understand the wireless industry.
My post was one of a business nature with legit concerns about the cost vs. profit on a device that is being sold so cheaply that obviously cost so much to produce based on the feature set. $129 is usually the base on a cheap flip. If you didn't und...
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You mentioned that Sprint is losing money on the phone, and you're probably right, since nearly every US carrier loses money on nearly every phone that's sold at the full discounted price. However, unlike most phones, the instinct requires a relatively high MRC.
I don't know what the figure is now, but I know a few years back, Sprint spent ~$35/line. So lets say it's $40 now; every customer with the instinct (if it's a single line) is paying AT LEAST $70, so there's a minimum of $30 in profit for every instinct customer.
I realize that there are other losses besides that, but the instinct is a good way to generate month...
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i did just as many upgrades into other phones as i did in instincts today! we are sold out of all of the ndc on sprint phones if they would stock my store better we would sell 2-300 more phones a month
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