The Samsung Instinct launches this week on Sprint. Some people are calling it the iPhone killer on Sprint. The price is roughly the same or even less and the service plan is roughly comparable. I won’t bore you with the details, there are plenty of sites talking about it. Also, Sprint was clever to launch the Samsung Instinct a few weeks before the Apple iPhone (June 20th compared to July 11th, respectively).
I am looking forward to see how well the Instinct sells. Each subscriber earns Sprint a gross of $1810.
$130 for the device
$70 per month x 24 months (full service contract)
$1810 per subscriber
Sprint will need to sell about 55,250 devices to break even. With Sprint claiming to have 1400 retail locations, not including dealers and resellers, each location would need to sell about 40 devices.
$100,000,000 divided by $1810 = 55,250 units
55,250 units divided by 1400 retail stores
Equates to 40 devices per store
The number of devices sold per store goes down if the Sales Consultant can sign up a subscriber to the Sprint Simply Everything Plan.
One gotcha that could bite Sprint is the launch date. The Samsung Instinct launches on June 20th and Sprint has a 30 day return policy, that would put the trial period until a minimum of July 19th. If everything goes optimally, that gives potential subscribers an overlap of 8 days to try out the Apple iPhone and see what is the better device for them. But chances are that you might not even be able to get your hands on the new iPhone to compare! Had the device been launched a week earlier, the might cause less potential returns. Also will the Instinct launch under a different model name for GSM carriers outside the US? Finally, it will still be some time before an unlock patch for iPhone devices will come out and be usable in other parts of the world, so there are more choices to cogitate than ever. Best of luck in upgrading to your new mobile device!