X-SciTech

Evo Shortage Turning into Problem for Sprint

By Charles Cooper

July 12, 2010 / 10:22 AM EDT / CBS News

If you were dreaming about thoughts of using an Evo smartphone on Sprint Nextel's super-fast 4G network, odds are that you're still dreaming.

> That's because the company's Taiwanese suppler, HTC Corp., continues to struggle to keep up with the early demand for the product, which debuted only last month. And now Sprint finds itself in limbo after announcing on its Web site that the Evo has been delayed: "Sorry, this device is so hot we can'tt keep it on our virtual shelves. Check back later - more are on their way!" the statement reads.

Now the company's CEO is acknowledging that the shortages are starting to hurt.

"We thought we would have more of a head start than we'll end up having," Sprint Nextel Chief Executive Dan Hesse told the Wall Street Journal.

The timing couldn't have come at a worse time with other companies close to going live with rival 4G networks.

The company has a lot invested in turning its 4G venture into a success. And as the Journal reminds us, the company's executive compensation has become tied more closely to that goal: "The weight Sprint gives to 4G subscriptions when calculating executives' bonuses was boosted to 20% from 10%, the company disclosed in a filing last week."

Quoting market researcher Macquarie Group., the article says that Sprint has sold 300,000 of its Evo 4G phones so far.