Spring Nextel Corp said its Virgin Mobile prepaid business will commence selling Apple Inc’s iPhone later this month and pitch it against smaller prepaid rival Leap Wireless International Inc, the news reports said.
The shares of Sprint surged about 2% after the company said the addition of iPhone to its Virgin brand would not hurt its 2012 earnings and would help it reach overall $15.5 billion commitment to Apple for a certain phone volume over few years.
The customers of Virgin who do not commit to a contract and pay for calls in advance will pay 2-1/2 times the price for an iPhone that Sprint contract pay.
The contract customers will get a big discount in the exchange for staying with Sprint for 2 years. The customers of Virgin will shell out $649 for the iPhone 4S compared with $200 for Sprint contract customers.
Sprint said it would start selling the device on June 22. Meanwhile, Leap Wireless said it will start selling iPhone on June 22 and is charging the same price as Virgin does. Virgin’s service plan for the iPhone customers will commence at $35 per month, compared with $55 per month minimum for the customers of Leap Wireless.
Sprint Nextel Corporation provides wireless and wireline voice and data telecommunications services to customers in U.S., Puerto Rico and the U.S. Virgin Islands.