[QUOTE:LeslieAnn
This post makes absolutely ZERO sense. If they want to slow sales, don't release a new phone. Just because the OV went up, and it was speculated to be because of growth, doesn't mean this will start higher for that reason. I still doubt the increase was to slow sales. That would be pretty silly considering only two weeks before they were blowing the OV out at $129. If you are near saturation, you don't hold a sale just before raising your rates.
Second, in business, lack of growth = death.
Sprint bought VM because pre-paid is the only growing segment in cell phones now. Post-Paid growth is almost at a standstill due to saturation.
As for the contract, Sprint owns Virgin Mobile.
Oh, and if Virgins network fails, so does Sprint, they are the same network.
Sprint is scared to death of the At&T T-Mobile merger. Raising prices right now would be the worst thing they could do. However, it could be a planned rate hike, but the explanations given so far have been pretty silly.
LeslieAnn,
In typical fashion you have responded with cogent analysis and pinpoint accuracy (IMHO). Makes no economic sense to spend boatloads of $$ on customer surveys, hardware manufacturer discussions and production, and an upcoming new product marketing campaign by sabotaging your efforts through exorbitant pricing of your new phone offering (and yes $350 for a VM phone IS expensive). I always enjoy reading your comments and opinions...they're interesting and incisive!