Could a Sprint iPhone Help Apple Battle Android?

By Chloe Albanesius

Adding Sprint as a U.S. iPhone carrier is not likely to result in a significant boost for any one wireless company, according to data from comScore, though Apple stands to benefit handsomely. With Android making gains in the U.S. smartphone market, adding a carrier like Sprint to the iPhone mix could help Apple battle the Google operating system, especially among lower-income Americans and those in the Midwest, comScore found.

Apple is hosting a press event at its Cupertino headquarters tomorrow, where it is expected to unveil the iPhone 5, and possibly add a new carrier. T-Mobile is out, but what about Sprint? Bloomberg said recently that Sprint would not only sell the iPhone, but it would offer its unlimited data plan with the Apple smartphone. Last month, TUAW also reported that Sprint has started briefing employees about an October iPhone launch. While not confirming that Sprint will get the iPhone, meanwhile, Sprint Nextel CFO Joe Euteneuer did tell attendees at a recent banking conference that the carrier was preparing its network for the influx of usage should it get the smartphone. "We're going to stay ahead of it," he said of the demand.

What might Sprint bring to the table? ComScore said its unlimited data plan option is a big selling point. "It will become the only carrier providing unlimited data plans for the iPhone and could represent a significant advantage not just for Sprint but also for Apple, serving as an entry point for the iPhone into new market segments that have traditionally been underserved," comScore said.

That includes the Midwest, where iPhone users have a 25 percent below average representation. "By making the iPhone available on Sprint with its current data offerings, Apple gains access to a potentially fertile market for iPhone adoption in the Midwest."

Sprint subscribers are also more likely to be in lower income segments that might be attractive to Apple. The number of iPhone users with household incomes under $50,000 doubled versus last year, coinciding with AT&T's decision to drop the price of the iPhone 3GS to $49. If Sprint maintains a competitive pricing plan, Apple could increase its penetration among that under $50,000 segment, comScore said.

But there are benefits to choosing AT&T or Verizon, comScore found, not the least of which is that $49 iPhone 3GS. The 3GS still made up 26 percent of all online interest in the iPhone in August 2011 and will continue to appeal to price-conscious shoppers even as Apple introduces more advanced models. Eventually, however, Apple will probably stop manufacturing the 3GS, comScore said, and there are also rumors that Apple is prepping a low-cost iPhone 4S.

Verizon, meanwhile, has the "satisfaction advantage," comScore said, maintaining the "highest average customer satisfaction rating among the wireless operators." When asked, about 23.5 percent of iPhone owners said they were thinking about switching operators, so "with nearly one in four iPhone users open to switching providers, the entry of a third option in the iPhone race then has the potential to significantly change the complexion of the market," comScore said.

That shift, however, will probably not result in a clear winner, the firm concluded. "With the ability to keep offering a lower-priced previous generation iPhone model, AT&T could continue to draw cost-conscious users to retain its larger share of the market," comScore said. "However, if Sprint provides its unlimited data plan to new iPhone users, it could become a more attractive option for iPhone users looking to increase their data usage affordably. Verizon's top satisfaction ratings continue to make it an attractive choice for users who value network reliability."

Ultimately, "the one clear winner so far would appear to be Apple," comScore said. Android has captured the "lion's share" of the U.S. smartphone market, so adding Sprint or any other carrier could help Apple regain market share. For more, see Why Is There No Sprint iPhone? PCMag will also be live-blogging tomorrow Apple's event so stay tuned for all the details.

Losing track of all the Apple iPhone 5 rumors? For more, see last week's top rumors as well as those from the week before and two weeks ago. Also check out What the iPhone 5 Might Look Like and Six Amazing Phone Technologies We Want in iPhone 5, as well as the 8 Likely iPhone 5 Rumors, and 2 Wild Ones slideshow below.