Apple's iPhone 5 Brings New Customers to Sprint

For the third straight quarter, Sprint (NYSE: S) has announced that it sold another 1.5 million iPhones. Once again, 40 percent of those units were sold to new customers.

While that number is relatively small compared to the millions of Apple (NASDAQ: AAPL) products that AT&T (NYSE: T) and Verizon (NYSE: VZ) sell each quarter, it proves that Sprint is capable of sustaining its growth -- even in the face of stiff competition.

Despite the continued growth, Sprint's post-paid ARPU (average revenue per user) declined slightly to $63.21, down from $63.38 during the last quarter. AT&T remained the industry leader with a postpaid ARPU of $65.20, up from $64.93 during the second quarter.

Sprint hopes to improve its market position by merging with Japan's SoftBank (OTC: SFTBF). The telecommunications giant will acquire a 70 percent stake in Sprint, allowing the Japanese firm to gain a foothold in the American market. It will also provide Sprint with a new source of capital, which it hopes can be used to compete more effectively against its chief rivals.

On October 12, Sprint announced that it will expand its 4G LTE coverage to more than 20 additional cities. In doing so, the company finally inspired Apple to bring its iPad to the carrier. Both the iPad Mini and the fourth-generation iPad will come to Sprint when they ship next month.

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