If mergers are meant to benefit companies, none could be more contrary to this fact than Sprint Corporation (NYSE:S) whose share value has been on the rise ever since talks with T-Mobile broke down. This caused an immediate spike in its share value which recorded an increase of 6.5% to end up at $7 for the first time since August 5th. Overall increase in the value of the stock over three days has been recorded at 21% and much of the credit has been attributed to the new CEO Marcelo Claure who took over the realms on August 6th.
In the backdrop of Sprint Corporation (NYSE:S) having lost many of its customers to rivals like Verizon Communications Inc (NYSE:VZ) and AT & T Inc (NYSE:T) over seven years, the parent company SoftBank Corp hired Marcelo Claure with the hope that he would revive the outfit. On his part the new CEO lived up to his reputation in several ways, the most prominent amongst which has been the ‘iPhone for life’ plan. Launched with Apple Inc (NASDAQ:AAPL)’s new releases in mind, this offer charges a monthly fee of $70, provides unlimited data to the users and enables them to acquire the latest version of the smartphone at a two-year interval.
The improved pricing plan introduced by the new CEO has drawn attention from a number of quarters and Jonathan Atkin at RBC Capital Markets says –
“The new prices got some attention, but I think the stock reflects the fact that Marcelo has been speaking in public for the first time. People probably sensed that there’s a decisiveness in his tone about cost cutting and network improvements.”
Thanks to the new pricing measures, those Sprint Corporation (NYSE:S) customers who are iPhone users are likely to find themselves in a better position to accrue maximum benefits of the new network although shipping delays of 7-10 days have been quoted as regards the Sprint Corporation (NYSE:S) network. As per Mr. Atkin, although Sprint is yet to prove itself, Colby Synesael feels that future prospects of the companies are bright –
“Sprint’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.”
This article has been written by Vinita Basu.