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5 Losers of Sprint's New 4G Smartphone

By Rick Aristotle Munarriz | More Articles
June 7, 2010 | Comments (9)

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I know today is technically Apple's (Nasdaq: AAPL  ) day to shine in the smartphone space, but we can't just let HTC's Evo disappear from the headlines after its debut weekend.

Sprint Nextel's (NYSE: S  ) first 4G smartphone hit stores on Friday, and the buzz is healthy for the latest Android-powered wireless device. The high-resolution dual cameras, large screen, and mobile hotspot feature are winning raves.

Naturally, there can't be a winner without a loser, and in this particular case there may be plenty of losers. Let's take a look at a few of the companies that stand the most to lose from if Sprint's 4G Evo is a hit.

  • AT&T (NYSE: T  ) -The exclusive iPhone carrier stops marketing its unlimited data plan for new smartphone owners today. Even if most wireless customers won't go through 2 gigabytes of data a month, there is a marketing bonus to "unlimited" and the freedom from perpetually checking usage rates. Sprint is still marketing unmetered data, and now the Evo gives it a phone that is -- in some respects -- cooler than the iPhone.
  • Verizon (NYSE: VZ  ) -Despite the clever "there's a map for that" ads touting its broader domestic coverage, Verizon still doesn't carry the iPhone that consumers crave. Now it doesn't carry the Evo. Verizon is thankfully stocked with cool Android-flavored handsets, but if Sprint is able to convey the speed strengths of its still limited 4G network, it may once again leave Verizon on the outside looking in when it comes to the hot smartphone.
  • Sierra Wireless (Nasdaq: SWIR  ) and Novatel (Nasdaq: NVTL  ) -Sprint plans to charge just $30 a month for the mobile hotspot feature. This has to be a big blow to the two leading USB broadband card and mobile hotspot makers. Novatel's MiFi -- and Sierra's speedy Overdrive 4G -- just got served. It's not the fault of Sierra or Novatel that wireless carriers typically charge twice as much for monthly data plans on their gadgets. This will still sting them all the same.
  • Research In Motion (Nasdaq: RIMM  ) -The BlackBerry isn't dead. The corporate market is still helping Research In Motion grow its user base. However, with every annual iPhone update -- and the onslaught of Android devices that get cooler with every rollout -- the BlackBerry tree doesn't look as fruitful in the long run.

The Evo can't be underestimated. And now back to your regularly scheduled Apple-rific iPhone headlines.

If you had a clear choice between the new iPhone and the Evo, which one would you choose? Why? Share your thoughts in the comment box below.

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Sprint is a Motley Fool Inside Value recommendation. Apple is a Stock Advisor choice. Try any of our Foolish newsletters today, free for 30 days.

Longtime Fool contributor Rick Munarriz is starting to see more Apple products creep into his home lately, but he still thinks the Evo is cool. He does not own shares in any of the companies in this story, except for Novatel. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.


Comments from our Foolish Readers

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  • Report this Comment On June 07, 2010, at 2:32 PM, EDS1957 wrote:

    I have been with Sprint since 1999, they have had issues, but I have always seen the overall value of the service and pricing as being a good value. I am a truck driver so nationwide service, and now internet at fast speeds is very valuable to me. I bought the EVO on Saturday, it's very impressive. Half the stuff I won't use because I have devices like GPS, XM radio. But having an always on connection where I don't have to connect via a bluetooth connection that was disconnecting frequently is a big plus. I see the HDMI connection being used via a HDTV in my truck or at home as a nice feature. And at some point I might get a wireless blue ray player, and use the Netflix wireless connection to watch movies on the road. I just hope 4G expands quickly because at the moment the main place I can use 4G is in the Amarillo, TX area.

  • Report this Comment On June 07, 2010, at 2:36 PM, Linksmanrjf wrote:

    I'm ready for the Evo.

  • Report this Comment On June 07, 2010, at 3:11 PM, 85 wrote:

    Even if Sprint carried the iPhone with a free, unlimited voice & data plan, I wouldn't go anywhere near it. I was burned by Sprint too many time to count, and finally fled as soon as my contract ended in 2008. I've been a happy Verizon customer ever since. Not crazy about Verizon's lack of iPhone and its insistence on trying to make everything proprietary, but I can't believe I stayed with Sprint for as long as I did. Horrible, horrible service, at least everywhere I've lived.

  • Report this Comment On June 07, 2010, at 4:07 PM, InfoThatHelp wrote:

    People could never underestimate the power of apps, that's what people buy things for in the first place unless you are a truck driver who spends 18 hours a day on the road.

    iPad and iPhone, hands down.

  • Report this Comment On June 07, 2010, at 5:11 PM, badboyeee wrote:

    I have been with Sprint for 10 years as well and I have never had any major issues with them. Customer service has been great with me. They have always shown to be the best value with their plans where as other carriers with the same plan would be at least $20+ more.

  • Report this Comment On June 07, 2010, at 10:32 PM, flailer777 wrote:

    Over the years i have had phones and service from all the carriers. And every year the coverage and phones (from all of them gets better - except ATT's service)

    It's true, VZ has the best coverage. They also have the Droid. They get a BIG star in my book.

    BUT, in spite of the difficulty in dealing with the store-fronts, i have signed up for another 2 year stint with Sprint. Why: They have the BEST price to performance ratio of any carrier. (performance = signal strength + quality "very" smart phones ) (price = $40 less per month, for unlimited everything, than VZ)

    * i travel within the lower 48

    Do i own any of the carriers' stock? Nope.

    (but yes to more than one smart phone manufacture)

    just my two cents - happy investing,

    Slacker

  • Report this Comment On June 07, 2010, at 10:44 PM, Xandman wrote:

    Never overestimate the attraction of 199,999 redundant/uninspired apps.

  • Report this Comment On June 08, 2010, at 10:10 AM, TMFABnormal wrote:

    After all of the hubbub with Verizon and AT&T both ditching truly unlimited data plans I'm looking for a new carrier (current iPhone 3G user). The addition of an such a lauded Android-based phone to Sprint's ranks finally makes them a viable option for me. Here's hoping I can cut my monthly bill by a sizable amount!

  • Report this Comment On June 09, 2010, at 9:58 PM, kcgomez83 wrote:

    I'm currently a Sprint customer and signed up specifically with them because of word of mouth, the 4G network, and being fed up with AT&T. I went with their unlimited $99 and sucked up a new contract for two years. While my free phone has had its share of battery issues, the network itself is pretty reliable and fast depending on the area. I wasn't happy to find out that Boost Mobile (another Sprint company) had the same exact deal, without a contract, for $50 less. Saving any money these days is a miracle so the savings Boost is offering should be avaiable to all Sprint customers, I mean we all share the same network. Boost is a prepaid company and might appear to offer less than Sprint, but I can't find the downside. Any other Sprint customers out there feeling the same? If you are, please email the President of Sprint ( http://sites.google.com/site/sprintcustomersunite/) and let him know that $50 in savings with the same service is a must.

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