RSSSprint says it's doing all it can to manage its Instinct
By Jacqueline Emigh | Published July 1, 2008, 8:57 AM
On Monday, Sprint announced that the Samsung Instinct has turned into the fastest selling EV-DO handset in the carrier's history, leading to product shortages in some parts of the US since the phone's release on June 19.
In mid-June, Samsung unveiled a successor to the Instinct known as the Omnia, which adds Wi-Fi and Samsung's new TouchWiz user interface, while boosting smartphone cameras capabilities to 5 Mp from the 2 Mp in the Instinct.
But despite an even more capable phone for the months ahead, Sprint is pouring its marketing efforts into the Instinct, according to Sprint officials, who have publicly acknowledged plans to spend some $100 million on marketing the Instinct -- or three times the budget for Sprint's biggest phone launch in 2007.
"Right now, we're just focusing on the Instinct," a Sprint spokesperson noted during the recent "Digital Experience" show in New York City, when asked by BetaNews whether Sprint -- like fellow OHA member T-Mobile -- plans to ship an Android phone at any time by the end of this year.
There and in other venues, Sprint has shown off features of the Instinct that include digital video and audio recording, movie downloads, an FM radio, GPS with audible driving directions, and a Speech to Action capability for placing phone calls by voice, just for starters.
The apparent popularity of the Instinct comes at a crucial time for Sprint, Although with its future WiMAX network, Sprint does look likely to beat Verizon and AT&T to market in the 4G arena, the financially struggling company has been losing ground to both of those companies in the 2G/3G space.
Now, AT&T's exclusive relationship with Apple for iPhone distribution in the US has posed a related threat. After quickly gobbling huge amounts of market share with the release of its first iPhone in mid-2007, Apple intends to ship the 3G iPhone on July 11.
Not surprisingly, though, Sprint CEO Dan Hesse has been deeply downplaying the potential impact of the 3G iPhone.
"One competitor has announced a new 3G device. But keep in mind that the 3G coverage could be relatively small, so the user experience could be disappointing to many," Hesse said, in a speech at the NXTcomm conference in mid-June.
"WiMAX and 4G [combined] is wireless at rocket speeds," according to Hesse. "We believe we could have a two year head start over the competition in true wireless broadband ... at landline type speeds."
With the Instinct, Sprint has pulled a turnabout on AT&T by getting an exclusive. Both phones share a number of features in common. Like the Instinct, the 3G iPhone supports GMS and HSDPA. Also in the 3G iPhone, Apple has added GPS support.
Apple's new phone, though, will be priced at $199 for an 8 GB version and $299 for a 16 GB edition. In comparison, Sprint's Instinct is selling for $130 with a two-year contract, after a $100 rebate.
At least one industry analyst has tested out Sprint's claims of product shortages. In a note to clients today, Pali Research Analyst Walter Piecyk said he asked 100 US Sprint stores about the availability of the Instinct.
Twenty-eight of the 100 stores had five or fewer Instincts in stock. Among those 28, 11 had totally run out of Instincts. Southern California appeared to be hardest hit.
Some Web-based retailers seem to be making hay out of the shortage. In a quick search of the Internet late today, BetaNews came across prices among the e-tailers ranging from $230 to $400 for Sprint's new 3G device.
I just visited the Sprint store, the price is $449 and only for new activations there is a $220 instant rebate and a $100 mail in rebate.
Existing customers are looking at the full $449. If you had your phone for over a year, it's $375. You have to ditch you existing plan, and new ones start at $70 with 450 voice minutes.
Makes me want to rush out for a new iPhone as soon as my current contract expires.
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|i'm shocked that people care about the instinct. i can't wait for the htc touch pro!
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|it might first try to manage its employees for better services instead of them making tv commercials.
there is a "DEAD ZONE" and it is "inside sprint" and not outside.
my instinct is never to get screwed by the same company twice.
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|It's great to see them having such success. Competition is good, and with their ventures into new technologies I hope they can get their act together.
Now, if only the entire industry - or at very least a few significant players would only change their model to a truly forward thinking and more reasonable pricing and service structure similar to what MetroPCS has done.
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|It's a shame that such a great phone is only available from the phone carrier with the worst coverage area.
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|Doesn't Sprint still have abysmal Cell and Customer service? Why would people put themselves through hell for a phone?
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|I've been with Sprint for 8 years and I only dislike some of the people in their stores. The customer service line is attentive and the phone service itself is great, especially the 3G data access.
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|Sprint overcharged my small (US) company for over $50,000.00. We caught them doing it and now they refuse to refund the over-payments. You can read the full story at http://www.sprint-really-sucks.com
I also wrote an open letter to Dan Hesse the Chairman and CEO of Sprint Nextel. It is a good read so please consider reading the letter.
http://www.sprint-really...n-letter-dan-hesse.aspx
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|The quintessential idiot is back again with another handle!
As mentioned before - ANY company who pays more than $50,000 over many months in 'bogus' bills is utterly and completely negligent!
Take a bow for complete negligence in your oversight, your company's accountants and lawyers and give that CFO a raise as you blame everyone but yourselves for your complete and utter lack of due diligence!
Folks...SPARE A MOMENT TO TAKE A GOOD LOOK AT A TRUE LOSER!
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|If you're not locked into an outrageous contract maybe the Instinct is the way to go.
Cellular providers (and now cellular makers) should never lock in their customers - it's a terrible thing to do to those that are purchasing your equipment or service and it is an old technique and feels like you're getting screwed as a customer.
You can find wallpaper backgrounds for the Instinct and iPhone or any other mobile device at http://www.mobilejacz.com
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|This is call anti-competitive. Any services from a telecomm require contract. I am surprise that FTC allow telecomm to do that. Actually, I am not surprise since telecomm are in bed with the government.
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|I picked up my Instinct in Manhattan last Monday. The sales rep said they had been selling about 60 per day in that store since it came out the previous Thursday.
So far I like the phone. The things I don't like about it are relatively minor, but will probably be rectified after more people start developing third-party apps for the phone.
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|Hopefully, it's easier than other Samsung products. Great performance, difficult to use, impossible to sync are the ways I describe my A900.
I saw that they want you to go with the unlimited plan to get the $129, for new customers, of course. Current customers get a rebate headache and $150 off the high price, right?
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