The Real Reason Apple's iPhone Left Virgin Mobile

Apple Inc.AAPL
fans rejoiced when
Verizon Communications Inc.VZ
was
rumored
to carry the iPhone. It seemed like a pipedream, but the mounting evidence suggested that
AT&T Inc.
T
was about to lose its exclusive distribution rights. Since that time, Apple has brought the iPhone to
Sprint Corp
S
,
T-Mobile US Inc
TMUS
and
numerous carriers
worldwide. Eventually, the iPhone also came to many pay-as-you-go carriers, including Virgin Mobile. That venture appeared to be somewhat successful, at least for retailers hoping to lure customers on Black Friday.
Target CorporationTGT
and
RadioShack CorporationRSHCQ
were among the retailers that sold Virgin Mobile-specific iPhones at steep discounts during Black Friday 2012 and 2013. Virgin Mobile appeared to be good for the iPhone 5C, which was thought to be a
commercial disappointment
. Virgin Mobile was the only carrier that sold out of its stock. "I can confirm that we are currently sold out of the models as indicated on our
website
," Lorena Pino, Public Relations and Communications Manager at Sprint Nextel,
told Benzinga
in October 2013. "We expect to have additional units within a week or two."

Related Link: Apple's Secret Plan To Change Augmented Reality Is Finally Emerging

Virgin Mobile does not announce the sales numbers for any of its devices, so it is not yet known how many iPhones the company sold. In November, a Virgin Mobile spokesperson told
9to5Mac
that the carrier had no plans to carry the iPhone 6 or iPhone 6 Plus. Virgin Mobile still carried the iPhone 5S and iPhone 5C, but every version was out of stock. In February Virgin Mobile
removed
the iPhone from its website, eliminating any hope that the carrier would re-stock the older models. No announcements were made regarding the iPhone 6. It now appears an announcement will not be coming. Instead of selling the iPhone directly to its customers, the carrier is pushing for existing iPhone users to switch to Sprint (which owns Virgin Mobile USA). Virgin Mobile has started sending out
vague text messages
to promote a new leasing offer from Sprint: "Right now, you can get your iPhone from Sprint with unlimited talk, text and high-speed data for only$50/month - plus your monthly device lease payment," the message claimed. Thus, it seems that Sprint removed the iPhone to focus on its core carrier instead of Virgin Mobile. Benzinga has reached out to Virgin Mobile regarding the promotion. This article will be updated if and when the carrier responds. Disclosure:
At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.
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