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Sprint CEO: We’re running out of new iPhones

Tuesday, 24 Sep 2013 | 6:26 PM ET
Sprint CEO: Running short on iPhone 5s supply
Tuesday, 24 Sep 2013 | 6:25 PM ET
Sprint CEO Dan Hesse says his company is up 28 percent year-to-date since its merger with Softbank, and discusses how it plans to stay competitive in the wireless space, and what demand for Apple's iPhone 5s has been like.

(Click for video linked to a searchable transcript of this Mad Money segment)

Dan Hesse tells Cramer that business is so brisk, he can barely keep up.

It appears people want the new iPhone and they want it on Sprint. "We're beginning to run out of inventory," Hesse admitted to Cramer during an appearance on Mad Money, "especially the 5S."

Hesse's comments suggest that buyers of the new iPhone, which comes in multiple colors, are drawn to particular hues. "We are out of a number of them already," he added.

Perhaps buyers are also drawn to Sprint's competitive pricing.

The new iPhone 5S is displayed during an Apple product announcement at the Apple campus in Cupertino, California.
Getty Images
The new iPhone 5S is displayed during an Apple product announcement at the Apple campus in Cupertino, California.

At Sprint, customers buying the latest Apple device pay a monthly fee of $27 for the device on top of a monthly service fee of $65, plus taxes and a one-time fee of $36 for device activation.

Sprint said its $65 monthly service fee most closely compares to $110 per month plans at AT&T and Verizon.

And according to Hesse the Sprint network is stronger than ever.

"We're spending 8 billion a year on capex," Hesse told Cramer. "We're spending a lot of money to make sure the network is great. Our goal is to build the best network of any carrier in the world – we'll have that when we're done."

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Now that Sprint has consummated its deal with Softbank, selling 78% of the company for $21.6 billion in cash, the carrier appears to be moving full steam ahead with its plans to finish building out its ultra-fast next generation 4G LTE network.

"Sprint is no longer merely the third-wheel of the wireless world," Cramer added," it's become a contender."

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