iPhone Could Crunch Sprint

As Sprint's (S Quote) struggles continue, some see an even steeper fall ahead.

But the Reston, Va., phone company's next wound may not even be self-inflicted. Industry watchers and investors say the next looming threat to Sprint comes from the hotly anticipated iPhone from Apple (AAPL Quote).

If the iPod-inspired phone has anything near the success that some observers expect, AT&T's (T Quote) exclusive arrangement to sell the phone will ring up big subscriber wins. The way some observers see it, many of those new AT&T customers will likely be coming from Sprint.

Sprint is the most vulnerable because it has one of the biggest groups of heavy data users, notes one investor who has no position.

At one time, Sprint was known as the technology leader by offering some of the most advanced phones. Of the four wireless players, Sprint did the best job attracting gadget lovers to its service. Sprint's customers are just the sort of texting, emailing, video-watching, music-listening hipsters that the iPhone is designed for.

Sprint isn't alone, of course. Verizon Wireless -- co-owned by Verizon (VZ Quote) and Vodafone (VOD Quote) -- also has its share of trendsetters who may covet the phone of the moment.

"This is going to cut into all the others' net adds," says the money manager, who is long Verizon.

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