Sprint CEO: We're glad we waited on Android

PASADENA, Calif.--Sprint CEO Dan Hesse has a lot to say about the mobile operating system he held off on--Android--and not so much about the phone he has backed, Palm's Pre.

At Fortune's Brainstorm: Tech conference here on Friday, he said that he's limited on what he can say about how the Pre is doing because Sprint reports earnings shortly.

Sprint CEO Dan Hesse (center) speaks with Fortune's Jon Fortt (left) at the Brainstorm: Tech conference, along with Qualcomm CEO Paul Jacobs (right).

Despite that, he told the audience that the primary constraint for selling the Pre has been the number of devices that Palm has made--not demand for the product, he said.

"There have been shortages of the device," Hesse said. Realistically, he said, Sprint won't know if it is a hit for three or four months. "It's too early to tell."

Hesse also said that Palm Pre returns aren't as high as people think.

"There's things all over people are speculating," Hesse said. "Most of the speculation I read is wrong."

As for Android, Hesse said his company is a big supporter of the operating system, but is glad the company waited until the second version of the Google-backed operating system.

"The reviews say now it's ready for prime time," Hesse said. "It wasn't when it first came out."

Hesse said Sprint will have at least one Android-based device for sale this year.

[Maarek Stele]

I would say, yes to the hesitation, but I wonder if Sprint is thinking about making their own UI for a device. HTC is the number #1 manufaturer with Motorola and Samsung following behind in close second (Samsung 1 device, Moto 2 in near future).

For Android to really kick off is for incentives for application designs. Yes, anyone can change the interface, but most apps are free. If you make one and demand $$$, someone will copy you and make one for free.

[jeff_from_detroit]

hurry up sprint with an android phone that has 800 x 480 res and a keyboard plz! i'm sick of my 2 year old palm treo

[texzen1]

The returns aren't as high because they have not sold as many as they have claimed. These devices are very poorly manufactured.

[Rawnchie14]

Are they really? Says who? You? Do you own a Palm Pre? I highly doubt you do.

I know a few friends that own it an wear it down into the ground. I will not be getting it, but I see them use it very very often and they don't complain about anything with the phone. They do a semi-ridiculous amount of things with it actually.

So... I find your deductions to be fairly inaccurate. Unless one of these 5 guys tell me something happened - figuring that all 5 of them have got lucky so far.

[ausernamenoonehaschosen]

They are poorly manufactured. Read the boy genius and the engadget reviews of it. Engadget actually physically broke theirs during the review, and there are many physical defect reports on precentral. In fact engadget just reported on how the screens have been breaking off.

[Deinonyschus]

They are NOT poorly manufactured. I've owned one from the very beginning and have had NO problems whatsoever. And I am not easy on the phone at all. Go read precentral.net. The Pre is absolutely amazing. Any early reviews had manufacturing prototypes and not the production-quality devices.

I just read the CNET Pre-iPhone comparo and just about all of the minor complaints against the Pre have been resolved with webOS 1.1. Just like the iPhone, these are software-driven phones. With each update comes more functionality and refinement.

[DMAN3k]

Would the Android be SERO friendly?

[princemwill]

That is the million $ question! I am waiting for the first SERO friendly option to jump ship from WinMo. I REALLY hope that an Andriod device (preferably with hard keyboard) will be an option. It will really be a shame if they continue to block SERO users from getting the new handsets... True we get a great deal but I personally, along with other SERO subscribers, have recruited a lot of friends, family and co-workers to Sprint. We missed the Pre and I can live with that, just give me another option in smart phone OS other than WinMo... PLEASE :(

[reltm]

I'm wondering the same thing. It seems like SERO has already been segmented among Vision and Power Vision users (e.g. if you want a Treo Pro you need to have Power Vision, if you want an HTC Snap you only need Vision). There are a number of handsets that are completely off limits (Pre, Instinct, Instinct S30) and others that require special Pro Pack or BIS as in the case of Blackberries.

It would be great to know exactly what options SERO users have. And on the other hand, it's hard to complain when you've already got a nice deal in hand (albeit with lousy phones!).

No hard evidence yet, but if I were going to bet, I'd bet that Android won't be available on SERO. If I were Sprint, I'd do everything I could to make Android the biggest possible splash it can be, which include trying to get new Android customers to pay as much as possible for their new phones... leaving SERO users out of the loop.

But that's all speculation. One can hope!

[sgirard]

I didn't know pre was experiencing a high rate of returns. That's interesting.

[Deinonyschus]

There was one quote taken out of context by Jim Cramer that is being thrown around. The return rates are average or lower than normal rates on new phones.

[ekeefe41]

*** is with this CEO.... They are a part of the open handset alliance and talks $hit about the Android platform all the time.
Let me tell ya i have a G1 and two friends with the instinct The G1 when it came out was better than anything Sprint had to offer. Both of my friends with the instinct wish they had gotten a G1!

So saying it was "not ready for prime time" is ludicrous coming from Sprint.

[chuck_whealton]

I'm afraid I'd have to agree with you - my G1 rocks. I left Sprint YEARS AGO due to thier horrendous customer service - with two months left on my contract, they were more interested in getting every last cent they could out of me for a new phone than they were in cutting me a break on the phones and getting my business for another two years.

Nowadays, I look at their prices for their "simply everything" plans and, last I checked at one of their stores, they don't even include tethering. So much for "everything". And a 5GB cap? Why bother?

I'm glad I have a G1 and so far, I'm pleased with T-Mobile. They may not have the signal of Verizon (yet), that I was with for around 5 years, but their prices are reasonable and they don't lock down the G1.

[qitupx]

@chuck
ALL providers have a 5gb cap on tethering. You are also required to pay a monthly premium for that service.
I can tell you that sprint's CS has improved dramatically. I was a sprint customer roughly 4 to 5 years ago. CS was horrible. I recently signed back up after reading of their improvements and got my self a pre. So far, CS has been great.

[Ciara4947]

This will be so cool, especially if Sprint keeps everything as is. On their awesome network...we shall see.

[libertyforall1776]

Hesse -- when are you going to lead and implement Direct Connect across ALL your phones since you bought Nextel?!?!

[AppleSuxLeo]

Arnold was glad he didn`t wait on Anadrol , and Dianabol.
Now the fool with the poor Austrian accent is mis-managing California.

[brynn08]

G1's overall design is atrocious....played with my friends.....looks like garbage....but the software is decent.....plus T-Mobile network is subpar compared to Sprint and VZW......ppl can say they left sprint years ago bcuz of CSR.....is pretty laughable....you must expect things in life are perfect..??? proly not.....every carrier has holes in the network....and customer srvc...no ones perfect......for the past year sprints CSR has dramatically improved.......and i been with them since 2002....cant tell me i dnt know what im talkin about...been with verizon too....sprints network is just as good.....sprint just gets a bad rap bcuz ppl LOVE to bring up the past.....how pathetic is that

It is obvious by your comment that you are very fond of Sprint...and that's great. My sister's carrier is Sprint, and she experiences dropped calls quite frequently. I have had a G1 since March. I have never experienced a dropped call nor have I had any issues with my data connection (including speed or response time). That said, 3G is not in my area quite yet...can't imagine it getting any better. This is my first experience with T-Mobile, and let me say, their Customer Service is OUTSTANDING! In fact, UNBEATABLE! As for the G1, I disagree with your description "G1's overall design is atrocious." It may not be as sleek and sexy as some other phones; however, in my view, the G1 is an attractive (the white one), well designed, and very well made phone... it is far from garbage. Then there is the Android experience...to say "the software is decent" is a gross understatement...and is "pretty laughable.' Personally, I am very excited to see the Android market finally taking off. As you can probably tell, I have been pretty impressed with my G1, Android, and T-Mobile; therefore, I'm pretty fond of them. However, I will be watching the market very closely, including the new phones being manufactured and their hardware, what version of Android OS, and carrier's plans in choosing my next Android phone.

[CRACKnberry]

the pre is a great phone and sprints 3g network is second to none!

[blackpro]

If Sprint would spend a fraction of time listening to the consumers and not figuring out how to screw its customers . An example...

I purchased the Pre when it came out and now it has dropped another $100? Are you going to do anything further for those of us who bought it directly?

Also I have YET to receive the $100 rebated. I bought it and sent it in several weeks ago. What is up with that?

http://www.precentral.net/best-buy-selling-pre-99-2-year-contract

http://www.engadget.com/2009/07/26/palm-pre-drops-to-99-at-best-buy/

Now why would you allow your 3rd party retailer under cut the price by that much? I can understand if you were going to buy hundred of thousands of products like those items you may find at lets say wall mart but for phones there rarely are any more than 6-12 units at a store because of their cost.

But they did it and frankly it ticks me off. I like Sprint's technology .. it is the very best I think.. but their management and customer service is horrific... you could not script it any worse and as a stock holder I am stuck because I bought it at a price even as at an employee discount it would cost too much to sell. So when I see things like this and when I hear the confidence that wall street shares about this company I just have to roll my eyes. Funny because I just watched Jim Cramer ask about Sprint as a recommendation.. he quickly called it a loser and to go with ANYONE else.....

signed a bitter Sprint Customer and stockholder

[Pimpinmane]

Price drop was a Best Buy error.

[tnirps]

you've simply missed the point and its discounted your argument. please try re-reading what's in the links you provided for clarification on what they are doing. rebates take 5-6 weeks and sometimes longer to receive. if you login into the rebate center that sprint provides to you when you buy the phone you can track the status of that rebate.

[Linuxforever]

Vodafone also looks on Linux: http://4pda.ru/forum/index.php?showtopic=132378

what is this I dont know.

[aron420]

I am hoping the the HTC Hero is coming to sprint soon!