June 8, 2012- Sprint announced on Thursday it’s prepaid business Virgin Mobile would begin selling the iPhone from Apple at the end of June. Sprint stock closed on Thursday nearly 1% up after it announced the addition of the Apple smartphone to his Virgin line would not hurt 2012 earnings, but would help it to reach the commitment of $15.5 billion it has to Apple for phone volume over a couple of years.
Virgin customers that do not have a contract and prepay for their phone calls, will pay over three times for an iPhone, than what Sprint customers who have contracts pay. Customers with contracts receive a large discount for signing a contract that is two years in length. Sprint contract holders pay $200 for an iPhone, while Virgin customers must spend over $649 for their iPhone 4S.
One analyst questioned how many, normally cost conscious Virgin customers, would be able to pay for the iPhone at such a steep price. The phone will be available to Virgin customers starting June 29. Leap Wireless, one of Virgin’s biggest competitors, announced it would start offering iPhones to its customers on June 22. Leap customers will pay less for the iPhone than Virgin customers will, but Leap has a higher monthly fee for service.