), the third largest wireless operator in the U.S., has tied up
with tech giant
) to offer its recently launched iPad Mini and fourth generation
Sprint is the first wireless operator in the U.S. to launch
the new gadget from Apple, which is a smaller version of its very
popular tablet series iPad. The new 4G enabled iPad mini
customers would enjoy the vast coverage of Sprint LTE networks,
which is also undergoing expansion.
Customers could select from Sprint's two attractive data plans
that include a 1GB data plan for $15 or a 100 MB data plan for
$10. The best thing about the offer is that it comes with a no
contract plan, which allows the customers to activate or
terminate the plan at their own discretion. The iPad Mini will be
available in black and white option and pricing will start from
$459.99 for a 16GB version. Higher capacity option of 32GB and
64GB will cost the customer $559.99 and $659.99,
Nevertheless, the company declared that only a limited
quantity of the new iPads will be available at select Sprint
stores, which appears to be a strategic move by the company to
check out the customer response.
The new iPad Mini possesses a 7.9 inch multi task display, a 5
megapixel camera and is 23% lighter and 53% thinner than its
predecessor iPad 3. Both iPad Mini and the fourth generation iPad
comes with the most advanced operating system in the world - iOS
6, which allows it to provide super fast wireless
Apple has announced that sales of iPad Minis have surpassed
all expectations and based on that the company has sold 3 million
iPads within the first three days of the launch of the new Mini
model. We believe the unbelievable success of the iPad Mini
coupled with the no-frills low priced data plan of Sprint will
help the service provider to attract new tablet customers.
However, the company might face stiff competition from rivals
Verizon Communication Inc.
), when they come up with their own version as these two carriers
have more LTE coverage than Sprint.
We maintain our long-term Neutral recommendation on
Sprint-Nextel Corp. The company also retains a Zacks #3 Rank,
implying a short-term Hold rating.
APPLE INC (AAPL): Free Stock Analysis Report
SPRINT NEXTEL (S): Free Stock Analysis Report
AT&T INC (T): Free Stock Analysis Report
VERIZON COMM (VZ): Free Stock Analysis Report
To read this article on Zacks.com click here.