Sprint will face an LTE iPhone 5 problem this year? One analyst said in a statement that the third-largest US wireless carrier might face the so-called “lag” if the iPhone 5 will include LTE.
Rumors say the iPhone 5 will get either a June or October release date.
But aside from the release date, rumors say the new iPhone might also ship with a larger screen, a new design and also, the much-anticipated 4G Long-Term Evolution which offers faster uploads and downloads.
Verizon is currently the LTE market leader in United States based on coverage while AT&T follows with its newly launched LTE networks. Meanwhile, Sprint is set to launch its own LTE network this year and most likely to be dealt before the release of the next iPhone.
According to Bernstein analyst Craig Moffett, Sprint might face a slowdown this year with the mention of the word “bankruptcy”, and Sprint might blame the iPhone 5.
Sprint reportedly signed a contract with Apple last year to get the iPhone on its network and so far, the result is near good.
For starters, last year’s deal with Apple requires Sprint to pay $20 billion for the iPhone in advance or in layman’s term, Sprint reportedly agreed to purchase at least 30.5 million iPhones over the next four years, including the current iPhone 4S and the upcoming iPhone, whether or not it could find customers to buy the phones.
Reports posted last year said the deal is on the positive side because Sprint reportedly attracted new customers, as well as upgrading customers with its unlimited promos.
However, Moffett thinks the deal will put Sprint under Verizon and AT&T’s numbers this year especially with the next iPhone that will include LTE (based on the new iPad with LTE). Moffett downgraded Sprint’s share rating yesterday putting it to “underperform” due to the LTE iPhone.
Customers might switch or choose Verizon and AT&T because they offer more LTE sites. “The problem is 4G,” Moffett said, adding that “Sprint doesn’t have enough free-and-clear spectrum on which to launch a competitive LTE network, and it doesn’t have the money to clear spectrum that’s already in use.”
A compelling 4G LTE is the only way says Moffett, but he quickly added that he is not predicting the Sprint bankruptcy, and just only pointing out the risks that the iPhone 5 might give.
It is worth noting that aside from the (expected) iPhone 5, Sprint is also scheduled to release its own LTE Samsung Galaxy Nexus this year, plus other Android devices.
