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.

 

Community Search:
MacTech Search:

Software Updates via MacUpdate

Apple GarageBand 10.1.5 - Complete recor...
The new GarageBand is a whole music creation studio right inside your Mac -- complete with keyboard, synths, orchestral and percussion instruments, presets for guitar and voice, an entirely... Read more
Adobe Audition CC 2017 10.0.2 - Professi...
Audition CC 2017 is available as part of Adobe Creative Cloud for as little as $19.99/month (or $9.99/month if you're a previous Audition customer). Adobe Audition CC 2017 empowers you to create and... Read more
Adobe After Effects CC 2017 14.1 - Creat...
After Effects CC 2017 is available as part of Adobe Creative Cloud for as little as $19.99/month (or $9.99/month if you're a previous After Effects customer). The new, more connected After Effects CC... Read more
Adobe Premiere Pro CC 2017 11.0.2 - Digi...
Premiere Pro CC 2017 is available as part of Adobe Creative Cloud for as little as $19.99/month (or $9.99/month if you're a previous Premiere Pro customer). Adobe Premiere Pro CC 2017 lets you edit... Read more
WALTR 2 2.0.9 - $39.95
WALTR 2 helps you wirelessly drag-and-drop any music, ringtones, videos, PDF, and ePub files onto your iPhone, iPad, or iPod without iTunes. It is the second major version of Softorino's critically-... Read more
Yummy FTP Pro 1.11.14 - $14.99 (50% off)
Yummy FTP Pro is an advanced Mac file transfer app which provides a full-featured professional toolkit combined with blazing speeds and impeccable reliability, so whether you want to transfer a few... Read more
ExpanDrive 5.4.4 - Access cloud storage...
ExpanDrive builds cloud storage in every application, acts just like a USB drive plugged into your Mac. With ExpanDrive, you can securely access any remote file server directly from the Finder or... Read more
Dash 3.4.3 - Instant search and offline...
Dash is an API documentation browser and code snippet manager. Dash helps you store snippets of code, as well as instantly search and browse documentation for almost any API you might use (for a full... Read more
Civilization VI 1.0.2 - Next iteration o...
Sid Meier’s Civilization VI is the next entry in the popular Civilization franchise. Originally created by legendary game designer Sid Meier, Civilization is a strategy game in which you attempt to... Read more
TurboTax 2016 - Manage your 2016 U.S. ta...
TurboTax guides you through your tax return step by step, does all the calculations, and checks your return for errors and overlooked deductions. It lets you file your return electronically to get... Read more

Red's Kingdom (Games)
Red's Kingdom 1.0 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0 (iTunes) Description: Mad King Mac has kidnapped your father and stolen your golden nut! Solve puzzles and battle goons as you explore and battle your... | Read more »
Turbo League Guide: How to tame the cont...
| Read more »
Fire Emblem: Heroes coming to Google Pla...
Nintendo gave us our first look at Fire Emblem: Heroes, the upcoming mobile Fire Emblem game the company hinted at last year. Revealed at the Fire Emblem Direct event held today, the game will condense the series' tactical RPG combat into bite-... | Read more »
ReSlice (Music)
ReSlice 1.0 Device: iOS Universal Category: Music Price: $9.99, Version: 1.0 (iTunes) Description: Audio Slice Machine Slice your audio samples with ReSlice and create flexible musical atoms which can be triggered by MIDI notes or... | Read more »
Stickman Surfer rides in with the tide t...
Stickson is back and this time he's taken up yet another extreme sport - surfing. Stickman Surfer is out this Thursday on both iOS and Android, so if you've been following the other Stickman adventures, you might be interested in picking this one... | Read more »
Z-Exemplar (Games)
Z-Exemplar 1.4 Device: iOS Universal Category: Games Price: $3.99, Version: 1.4 (iTunes) Description: | Read more »
5 dastardly difficult roguelikes like th...
Edmund McMillen's popular roguelike creation The Binding of Isaac: Rebirth has finally crawled onto mobile devices. It's a grotesque dual-stick shooter that tosses you into an endless, procedurally generated basement as you, the pitiable Isaac,... | Read more »
Last week on PocketGamer
Welcome to a weekly feature looking back on the past seven days of coverage on our sister website, PocketGamer. It’s taken a while for 2017 to really get going, at least when it comes to the world of portable gaming. Thank goodness, then, for... | Read more »
ROME: Total War - Barbarian Invasion set...
To the delight of mobile strategy fans, Feral Interactive released ROME: Total War just a few months ago. Now the game's expansion, Barbarian Invasion is marching onto iPads as a standalone release. [Read more] | Read more »
Yuri (Games)
Yuri 1.0 Device: iOS iPhone Category: Games Price: $3.99, Version: 1.0 (iTunes) Description: It's night. Yuri opens his eyes. He wakes up in a strange forest.The small, courageous explorer rides on his bed on casters in this... | Read more »

Price Scanner via MacPrices.net

Apple’s Education discount saves up to $300 o...
Purchase a new Mac or iPad using Apple’s Education Store and take up to $300 off MSRP. All teachers, students, and staff of any educational institution qualify for the discount. Shipping is free: -... Read more
4-core 3.7GHz Mac Pro on sale for $2290, save...
Guitar Center has the 3.7GHz 4-core Mac Pro (MD253LL/A) on sale for $2289.97 including free shipping or free local store pickup (if available). Their price is a $710 savings over standard MSRP for... Read more
128GB Apple iPad Air 2, refurbished, availabl...
Apple has Certified Refurbished 128GB iPad Air 2s WiFis available for $419 including free shipping. That’s an $80 savings over standard MSRP for this model. A standard Apple one-year warranty is... Read more
13-inch 2.7GHz Retina MacBook Pro on sale for...
B&H Photo has the 2015 13″ 2.7GHz/128GB Retina Apple MacBook Pro on sale for $100 off MSRP. Shipping is free, and B&H charges NY tax only: - 13″ 2.7GHz/128GB Retina MacBook Pro (MF839LL/A): $... Read more
Laptop Market – Flight To Quality? – The ‘Boo...
Preliminary quarterly PC shipments data released by Gartner Inc. last week reveal an interesting disparity between sales performance of major name PC vendors as opposed to that of less well-known... Read more
IBM and Bell Transform Canadian Enterprise Mo...
IBM and Bell Canada have announced they are joining forces to offer IBM MobileFirst for iOS market-ready enterprise applications for iPad, iPhone or Apple Watch. Bell, Canada’s largest communications... Read more
Otter Products is Closing… For a Day of Givin...
On Thursday, Feb. 9, Otter Products is closing doors to open hearts. In partnership with the OtterCares Foundation, the company is pausing operations for a day so all employees can volunteer with... Read more
15-inch 2.2GHz Retina MacBook Pro on sale for...
Amazon has 2015 15″ 2.2GHz Retina MacBook Pros (MJLQ2LL/A) available for $1799.99 including free shipping. Apple charges $1999 for this model, so Amazon’s price is represents a $200 savings. Read more
Back in stock: Apple refurbished 13-inch Reti...
Apple has Certified Refurbished 2015 13″ Retina MacBook Pros available for up to $360 off original MSRP, starting at $1099. An Apple one-year warranty is included with each model, and shipping is... Read more
CalcTape for macOS 1.2 Adding Machine App for...
schoettler Software has announced CalcTape 1.2, an update to their desktop calculator for macOS. When it comes to adding long columns of numbers, doing complex calculations or playing around with... Read more

Jobs Board

*Apple* & PC Desktop Support Technician...
Apple & PC Desktop Support Technician job in Los Angeles, CA Introduction: We have immediate job openings for several Desktop Support Technicians with one of our Read more
*Apple* Retail - Multiple Positions - Apple,...
SalesSpecialist - Retail Customer Service and SalesTransform Apple Store visitors into loyal Apple customers. When customers enter the store, you're also the Read more
*Apple* Retail - Multiple Positions (Multi-L...
Job Description: Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
*Apple* Retail - Multiple Positions - Apple,...
Job Description: Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
*Apple* & PC Desktop Support Technician...
Apple & PC Desktop Support Technician job in Stamford, CT We have immediate job openings for several Desktop Support Technicians with one of our most well-known Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.