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Yesterday Sprint reported a loss of $344 million. This was due to a number of factors, but losing 776,000 contract customers sure didn’t help matters. I’m really quite surprised that nobody has vocalized Sprint’s true problem. I don’t think that it’s bad customer service (read Joel’s article on Verizon - and see if you don’t think the cell phone companies all have challenges). Heck, I don’t even think that it’s the loss of the SERO plans in favor of more expensive options. There’s one huge glaring oversight that I have not seen a single person pick up on. Want to know what I think Sprint’s doing wrong?

The problem with Sprint is….

They have NO exciting phones that people are eager to purchase.

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Think about it.

Of course, AT&T has the iPhone. They also have Pantech, Blackjack II, Tilt and many other newer, sexier models than Sprint.

How are customers supposed to flock to Sprint when the newest offerings are me-too models of the Palm Centro, RIM Curve, and HTC Touch (all “me too” models available on competing carriers).

Indeed, I submit that Sprint’s true problem is that they’ve let their phone selection go to hell. While trying to get a phone before the SERO $30 plans went away - I had an impossible time finding a single Sprint phone that I was excited about buying. Not one. The end result is that I did not buy a Sprint phone.

If you don’t think this is a problem, just take a look at the list of phones that Sprint displays when you search.

Sprint Razr? zzz

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The newest (and most talked about phone) is the Samsung Instinct.

For only about $70 less - why would most people buy this phone instead of the iPhone? It’s highly unlikely there will EVER be a critical mass of applications developed for it, you’ll forever be stuck with some third party music player and the early reports on the browser quality are laughable.

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Every single story about Sprint’s recurring losses (both money and subscribers) entirely misses the boat.

Sprint is bleeding subscribers partly because they have no compelling phones to attract them. Why should subscribers stay for another 2 year commitment only to select from phones that they can find on any carrier.

Sprint needs to wake up ASAP and get some phones (the HTC Diamond would be a good start) which are exclusive to their service.

They should either remove those old RAZR phones or immediately make them free with no need for rebates. Heck, Sprint should step forward and announce that all of their phones will no longer require rebates - which removes one of the big hassles subscribers face when they purchase new service.

While you’re at it Sprint - why not take a leadership role and offer your subscribers a new phone at the subsidized new customer price EVERY YEAR of their plan (not at the end of the two years).

The Sprint plans are right on target.

I think they’ve smartly created all in one plans that deliver voice plus unlimited messaging. Long term this is what people will want. The plans are attractive. Now just go get some phones that people aren’t embarrassed to use!

Sprint