This Is How Sprint Plans To Make Money By Providing Latest iPhones At $22/Month

Shares of Sprint Corp S have seen an astonishing rise of almost 40% in the last four trading sessions. Over 10% of those gains came on Monday when the company announced a new deal 'iPhone Fever' under which its customers can get the latest iPhone for only $22 a month.

Marcelo Claure, Sprint CEO, was on CNBC Tuesday to discuss this deal and the company's plans to shift to an all-lease model.

New Goal

"Our new goal is basically to change the way American consumers will get their mobile phone," Claure. "We have done a lot of research, we have talked to a lot of customers and what they told us that probably one of the most frustrating thing in this industry is the fact that new technology gets released every year."

He continued, "There is an iPhone that have been released for the last few years every single year and galaxy. However, customers sign a 2-year contract, whether it's a financing contract or [a] subsidy contract. And most customers cannot get their phone when the new phone comes out. So, we are changing that."

Tremendously Accretive

Claure was asked that won't the company finances be impacted by giving iPhones at $22 per month and how it plans to make money with this. He replied, "What we found is there is a huge market for customers who cannot afford to buy a new iPhone, but would love to get their hands on a device that's less than an year old. So, once we manage this whole ecosystem, this is tremendously accretive for Sprint."