Sprint, T-Mobile hope low iPhone prices lure customers


BLOOMBERG: Struggling phone service providers try almost giving away iPhones to add subscribers.

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BLOOMBERG: Struggling phone service providers try almost giving away iPhones to add subscribers.

Starting Friday, Sprint stores will kick off iPhone 6S sales with lease offers that start at $1 a month. The limited-time promotion requires customers to trade in their iPhone 6 phones and doesn’t include the cost of service plans. The offer beats T-Mobile US Inc.’s $5-a-month iPhone lease, which until now had previously been the lowest-priced deal for consumers.

“It’s a desperate move,” says Roger Entner, an analyst with Recon Analytics LLC. “You don’t make money on $1 device leasing.” Including the iPhone 6 trade-in value, Entner estimates that Sprint is losing $24 a month on each new $1 lease. That excludes revenue from monthly service charges.

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