Apple-Sprint Deal on iPhone 5 Exclusivity Worth $20 Billion

October 4, 2011, By Sanjeev Ramachandran

Okay, here is more on the much-awaited iPhone 5, and Sprint. We hear the companies have entered into an agreement worth $20 billion. This means Sprint would get over 30 million units of the fifth generation iPhone, which will be WiMAX-enabled.

All said, this could be a risky deal for Sprint as it is believed that the carrier will not breakeven on transactions until 2014. However, there should be a solid reason for this happening.

Well, this could be why: The iPhone 5 will be exclusive to Sprint. If what we hear is to be believed, Sprint will get the real iPhone 5 and not the iPhone 4S.

And AT&T and Verizon will offer the iPhone 4S, and also the iPhone 5 sometime in the first quarter of 2012 as an LTE device. The iPhone 5 will be available worldwide as a 4G HSPA+ device.

Having said that, the iPhone 5 exclusive to Sprint may not be the best thing Apple does, if at all. AT&T and Verizon have sold millions of iPhone for Apple as well.

Plus, the iPhone 5 on multiple carriers would have been the best way to widen the already huge horizon of Apple’s iPhones.

The iPhone 4S is expected to come with a low voltage Apple A5 CPU, an 8 megapixel camera with 1080p HD recording capability, Multiband 3G Qualcomm chipset and NFC support.

Meanwhile, the next-gen iPhone is expected to feature a 4-inch screen, faster CPU, 1 GB of RAM, 32 GB of storage, and iPhone 5 exclusive software as well as APIs.

What do you think about this exclusivity deal?

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