Sprint Corporation (NYSE:S)’s merger with Nextel was nothing short of a disaster, but the company is looking to dig itself out of this hole it created and so far this week it’s doing so on the backs of Apple Inc. (NASDAQ:AAPL) and its new iPhones.
Just a day after the iPhone 6 was launched, Sprint unveiled a plan called “iPhone for Life.” It allows users to pay $50 a month for texting, talking and data. No upfront payment is required though users do need to pay a $20 monthly lease. After two years, users will get a new phone.
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This innovative pricing model has raised Sprint’s share price over 20% in the three days since it was announced by new CEO Marcelo Claure and comes just a month after he took over the Overland Park, Kansas-based Sprint.
Sprint’s ratings Boosted by Cohen
Sprint Corporation (NYSE:S)’s iPhone offer “better positions the company for the Sept. 19 launch and will more quickly get phones in the hands of customers so they can take advantage of the new network,” wrote Colby Synesael, a New York-based Cowen analyst, who upgraded the shares to market outperform (buy) a market perform rating (hold).
Change is good,” wrote Synesael referring to the new CEO, and investors should “get in front of it.”
Pre-orders are seeing some models of the iPhone 6 selling out today with shipments of the iPhone 6 Plus already delayed nearly a month according to Apple’s website with some models of the iPhone 6 with a smaller screen already delayed on the Sprint network.
Sprint Corporation (NYSE:S) closed yesterday’s trading at $6.57 and opened today’s trading at $6.87. The stock has seen a trading range of $6.86 to $7.15 with the high number coming in at 10:15AM EDT. Presently, (3:25PM EDT) the stock is trading at $7.03 up $0.45 on the day for a gain of 7% on the day. Nearly 94 million shares have changed hands today well over four times the stock’s daily volume over the last 90 days.