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An Up-and-Down Quarter for This Mobile Stock

The following video is part of our "Motley Fool Conversations" series, in which technology editor/analyst Andrew Tonner and industrials editor/analyst Isaac Pino discuss topics around the investing world.

Telecom player Sprint Nextel recently reported its quarterly earnings to mixed reviews. Going into earnings season, Sprint found itself in a precarious situation. Although the economics of the deal appeared more than unappealing for Sprint, the company recently signed a deal to bring the much-sought-after iPhone onto its network. However, in doing so, the company largely paid more than it was worth, further underscoring the importance of offering high-profile smart devices for wireless providers. How will Sprint fare? 

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Andrew Tonner and Isaac Pino have no positions in the stocks mentioned above. The Motley Fool owns shares of Apple. Motley Fool newsletter services recommend Apple. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On February 12, 2012, at 11:16 PM, XoriusM wrote:

    Although I agree for the most part with the logic of this video, I believe they are underestimating Sprint. I am currently an AT&T iPhone user, and when I heard that Sprint was offering an unlimited data plan for $80 it caught my attention right away. One month I went over my 2 GB data limit with AT&T and had to pay a pretty modest extra fee for it. Ever since though I've been paranoid about my data usage. It kind of takes away from the fun of having an iPhone when you feel like you have to limit yourself using it. my buddy has an unlimited plan with Verizon and is paying $120.

    So it comes down to service and reception. Interestingly I work out in the middle of the Mojave Desert, and the people that I work with either have Verizon or AT&T. There are several locations where no one can get service so we carry around walkie-talkies. One day I noticed a guy making phone calls in an area I had never been able to get reception. Sure enough, he had a Sprint iPhone. As it also turns out, he and his wife share a $130 a month plan with their iPhones.

    Once my plan with AT&T is up you can count one more to the Sprint user population.

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