Greg's Bite: Sprint and ClearWire -- Apple takeover targets?
TweetFollow Us on Twitter

Greg's Bite: Sprint and ClearWire -- Apple takeover targets?

By Greg Mills

Apple finally condescended to grant Sprint the iPhone in a deal that rocked Wall Street. Sprint is betting the farm that selling the iPhone will pull the third string US carrier out of the dumps and back into the big time. Apple and Sprint both seem to be quite confidant that simply having iPhones available for its customer base will turn the company around.

That might be true if the company lasts that long. Sprint is stone broke and mismanaged, running in all directions at once. They need a firm hand at the helm and don't have one. Making an agreement with Apple to buy 30,500,000 iPhones over the next four years at a cost of US$20 billion is rather rich considering the current market cap for Sprint is only $7 billion. Not only is the Apple deal too rich for Sprint, they recently announced that they intend to build out a new LTE G4 network that will cost them money they just don't have. Confidence in Sprint's management is the problem with the low valuation.

The problem at Sprint is simply bad management at the highest levels. There is nothing wrong with the spectrum or cellular network Sprint operates. ClearWire may have built out the wrong flavor of cellular technology, but that network can be converted to LTE 4G for peanuts by someone with cash. C;earWire is close to bankruptcy and Sprint is not helping. (See http://www.computerworld.com/s/article/9220658/Sprint_s_solo_LTE_plan_ig... .)

Sprint's (S) NASDAQ, market cap has shrunk to $7.2 billion and ClearWire (CLWR) NASDAQ, has shrunk to $1.27 billion as of the close of the market Friday. Clearly, someone with cash and an ability to focus could snatch Sprint out of the dust bin and fix the company. Sprint stock has fallen from a high of nearly $75 per share in October of 1999 to close at $2.41 Friday. ClearWire has fallen from a high of $32.50 in July, 2007 to $1.39 Friday.

UPDATE POSTED MONDAY Oct 10, 3 PM CENTRAL TIME:
Sprint continues a freefall to $2.20 per share and the sprint market cap has fallen to 6.6 Billion US. Sprint stock set a new 52 week low at $2.10 and rebounded slightly.

I submit that Sprint and ClearWire have gotten so cheap they amount to chump change for Apple or Google and ought to be bought out. The spectrum the two cell companies own alone is enough to justify the expenditure. I am convinced the problem at Sprint is upper management that can't devise and stick to a business plan that works.

Sprint bought the Nextel network some years ago and the merger was nothing short of a disaster. The two networks were incompatible electronically as was the focus of the consumer-oriented Sprint and the business-oriented Nextel. Sprint customer service was so bad a few years ago customers were leaving in droves.

Not having the iPhone wasn't the issue; it was rude customer service and service account rules that made consumer feel like chumps for ever having signed a contract with them. Rumors are that Sprint finally recognized that problem and has moved to fix it. I can not confirm that since I am still angry with Sprint five years down the road.

If Apple were to takeover sprint and ClearWire, fire everyone from the janitorial staff up and put strong business managers in place, a further investment over the next two years of $5 billion or so for a total investment of roughly $15 billion, Apple could own a strong network in the US. Renaming Sprint the Apple Cellular Network would reverse the fortunes of the company overnight and likely return the investment in the form of a dramatically increased market cap for Sprint and ClearWire in a matter of days. I think Sprint stock would soar if Apple took them over, as everyone knows what is wrong with Sprint.

That Apple is interested in running a cellular network comes from an interesting source. Tony Fadel holds an Apple patent where he conjures up a virtual cellular network that uses excess cellular capacity that can be purchased for chump change from the existing cellular networks and then resold through the iTunes store. Buying and renaming Sprint "Apple Cellular" is a much better idea.

Apple management has taken some criticism for hoarding more money that the US government. They contend that they will make "strategic purchases" when the time is right. The time is right to buy the third largest US cellular network outright for less than what Apple now makes in net profit in just three months' time. There are interesting ways to buy a major company that doesn't require all cash. I think Apple ought to move on Sprint and ClearWire before Google snatches them away.

That is Greg's Bite.

 
AAPL
$102.99
Apple Inc.
+0.52
MSFT
$44.38
Microsoft Corpora
-0.50
GOOG
$532.71
Google Inc.
+6.17

MacTech Search:
Community Search:

Software Updates via MacUpdate

Evernote 5.6.2 - Create searchable notes...
Evernote allows you to easily capture information in any environment using whatever device or platform you find most convenient, and makes this information accessible and searchable at anytime, from... Read more
OmniOutliner 4.1.3 - Organize your ideas...
OmniOutliner is a flexible program for creating, collecting, and organizing information. Give your creativity a kick start by using an application that's actually designed to help you think. It's... Read more
BBEdit 11.0 - Powerful text and HTML edi...
BBEdit is the leading professional HTML and text editor for the Mac. Specifically crafted in response to the needs of Web authors and software developers, this award-winning product provides a... Read more
Apple Security Update 2014-005 - For OS...
Apple Security Update is recommended for all users and improves the security of Mac OS X. For information on the security content of this update, please visit this website: http://support.apple.com/... Read more
EyeTV 3.6.6 - Watch and record TV on you...
EyeTV brings a rich TV experience to your Mac. Watch live TV on your Mac. Pause, rewind, and record whenever you want. EyeTV gives you powerful control over what you watch and how you watch it. Put... Read more
RapidWeaver 6.0 - Create template-based...
RapidWeaver is a next-generation Web design application to help you easily create professional-looking Web sites in minutes. No knowledge of complex code is required, RapidWeaver will take care of... Read more
NTFS 12.0.39 - Provides full read and wr...
Paragon NTFS breaks down the barriers between Windows and OS X. Paragon NTFS effectively solves the communication problems between the Mac system and NTFS, providing full read and write access to... Read more
RestoreMeNot 2.0.3 - Disable window rest...
RestoreMeNot provides a simple way to disable the window restoration for individual applications so that you can fine-tune this behavior to suit your needs. Please note that RestoreMeNot is designed... Read more
Command-C 1.1.5 - Clipboard sharing tool...
Command-C is a revolutionary app which makes easy to share your clipboard between iOS and OS X using your local WiFi network, even if the app is not currently opened. Copy anything (text, pictures,... Read more
Macgo Blu-ray Player 2.10.9.1750 - Blu-r...
Macgo Mac Blu-ray Player can bring you the most unforgettable Blu-ray experience on your Mac. Overview Macgo Mac Blu-ray Player can satisfy just about every need you could possibly have in a Blu-ray... Read more

Latest Forum Discussions

See All

Super Glyph Quest (Games)
Super Glyph Quest 1.01 Device: iOS Universal Category: Games Price: $2.99, Version: 1.01 (iTunes) Description: Adventure is back Questers! Combine elemental glyphs together to cast powerful spells and vanquish adorable monsters in... | Read more »
Fighting Fantasy: Caverns of the Snow Wi...
Fighting Fantasy: Caverns of the Snow Witch 1.0 Device: iOS Universal Category: Games Price: $5.99, Version: 1.0 (iTunes) Description: Travel to Northern Allansia’s perilous Icefinger Mountains to defeat the wicked Snow Witch in this... | Read more »
Star Warfare 2: Payback Review
Star Warfare 2: Payback Review By Blake Grundman on October 22nd, 2014 Our Rating: :: ONE-TRICK PONYUniversal App - Designed for iPhone and iPad Unfortunately, it doesn’t take long for Star Warfare 2’s free-firing fun to turn into... | Read more »
TinType by Hipstamatic (Photography)
TinType by Hipstamatic 1.0 Device: iOS iPhone Category: Photography Price: $.99, Version: 1.0 (iTunes) Description: Create hauntingly beautiful, soul capturing portraits with TinType by Hipstamatic. Inspired by daguerreotypes,... | Read more »
The Latest Update for Heroes of Dragon A...
The Latest Update for Heroes of Dragon Age Introduces Daily PvE Challenges Posted by Ellis Spice on October 22nd, 2014 [ permalink ] | Read more »
Bee Brilliant Review
Bee Brilliant Review By Jennifer Allen on October 22nd, 2014 Our Rating: :: SAMEY MATCH-3Universal App - Designed for iPhone and iPad Want even more Match-3 gaming and fancy a bee based twist? Bee Brilliant is that game. Don’t... | Read more »
A New Trailer has Been Revealed for Epic...
A New Trailer has Been Revealed for Epic of Kings Posted by Jessica Fisher on October 22nd, 2014 [ permalink ] Dead Mage Inc. has released a new, action-packed trailer for the upcoming Epic of Kings. | Read more »
Find the Line Review
Find the Line Review By Campbell Bird on October 22nd, 2014 Our Rating: :: INSLIDE THE LINESUniversal App - Designed for iPhone and iPad Tease out beautiful line drawings in this unique, free-to-play puzzle game.   | Read more »
Things Get Magical in The Sims FreePlay...
Things Get Magical in The Sims FreePlay with a New Halloween Update Posted by Ellis Spice on October 22nd, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
The Silent Age Episode 2 Review
The Silent Age Episode 2 Review By Jennifer Allen on October 22nd, 2014 Our Rating: :: ROUNDING THINGS OFF NICELYUniversal App - Designed for iPhone and iPad Rounding off a great point and click adventure comes The Silent Age... | Read more »

Price Scanner via MacPrices.net

Save with Best Buy’s College Student Deals
Take an additional $50 off all MacBooks and iMacs at Best Buy Online with their College Students Deals Savings, valid through November 1st. Anyone with a valid .EDU email address can take advantage... Read more
iPad Air 2 & iPad mini 3 Best Tablets Yet...
The new iPads turned out to be pretty much everything I’d been hoping for and more than I’d expected.”More” particularly in terms of a drinking-from-a-firehose choice of models and configurations,... Read more
Drafts 4 Reinvents iOS Productivity App
N Richland Hills, Texas based Agile Tortoise has announced the release of Drafts 4 for iPhone and iPad. Drafts is a quick capture note taking app with flexible output actions. Drafts 4 scales from... Read more
AT&T accepting preorders for new iPads fo...
AT&T Wireless is accepting preorders for the new iPad Air 2 and iPad mini 3, cellular models, for $100 off MSRP with a 2-year service agreement: - 16GB iPad Air 2 WiFi + Cellular: $529.99 - 64GB... Read more
Apple offering refurbished Mac Pros for up to...
The Apple Store is offering Apple Certified Refurbished 2013 Mac Pros for up to $600 off the cost of new models. An Apple one-year warranty is included with each Mac Pro, and shipping is free. The... Read more
Select MacBook Airs $100 off MSRP, free shipp...
B&H Photo has 2014 a couple of MacBook Airs on sale for $100 off MSRP. Shipping is free, and B&H charges NY sales tax only. They also include free copies of Parallels Desktop and LoJack for... Read more
13-inch 2.5GHz MacBook Pro on sale for $100 o...
B&H Photo has the 13″ 2.5GHz MacBook Pro on sale for $999.99 including free shipping plus NY sales tax only. Their price is $100 off MSRP. Read more
Strong iPhone, Mac And App Store Sales Drive...
Apple on Monday announced financial results for its fiscal 2014 fourth quarter ended September 27, 2014. The Company posted quarterly revenue of $42.1 billion and quarterly net profit of $8.5 billion... Read more
Apple Posts How-To For OS X Recovery
OS X 10.7 Lion and later include OS X Recovery. This feature includes all of the tools you need to reinstall OS X, repair your disk, and even restore from a Time Machine backup. OS X Recovery... Read more
Mac OS X Versions (Builds) Supported By Vario...
Apple Support has posted a handy resource explaining which Mac OS X versions (builds) originally shipped with or are available for your computer via retail discs, downloads, or Software Update. Apple... Read more

Jobs Board

Senior Event Manager, *Apple* Retail Market...
…This senior level position is responsible for leading and imagining the Apple Retail Team's global event strategy. Delivering an overarching brand story; in-store, Read more
*Apple* Solutions Consultant (ASC) - Apple (...
**Job Summary** The ASC is an Apple employee who serves as an Apple brand ambassador and influencer in a Reseller's store. The ASC's role is to grow Apple Read more
Project Manager / Business Analyst, WW *Appl...
…a senior project manager / business analyst to work within our Worldwide Apple Fulfillment Operations and the Business Process Re-engineering team. This role will work Read more
*Apple* Retail - Multiple Positions (US) - A...
Job Description: Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
Position Opening at *Apple* - Apple (United...
…customers purchase our products, you're the one who helps them get more out of their new Apple technology. Your day in the Apple Store is filled with a range of Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.