T-Mobile Says Apple's iPhone Isn't Worth the Sacrifices Required
November 21, 2012 9:06 AM
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T-Mobile doesn't want to spend billions just to get the iPhone like some competitors did
With the massive popularity of Apple's iPhone, you would think every carrier in the United States would want the device on their network. Verizon, AT&T, Sprint offer the iPhone, as do several smaller regional carriers. However, T-Mobile isn’t officially on the
iPhone bandwagon yet
A T-Mobile executive as recently stated that the carrier knows it has lost customers by not carrying the iPhone, but it's not willing to make major sacrifices just to get the device on its network.
Jim Alling, COO of T-Mobile USA, said, "Make no mistake about it: We would love to carry the iPhone. However, we want the economies to be right for us."
Alling also noted that T-Mobile didn't want to sign a deal similar to its competitors.
Fierce Broadband and Wireless
reports that Alling is making a veiled reference to a deal Sprint made to carry the iPhone in 2011 that cost $15.5 billion. Sprint doesn't expect its iPhone operations to
become profitable until 2015
Apple iPhone 5
Alling did note that T-Mobile's SIM-only Value Plans have attracted numerous iPhone owners from other networks. He said that there are 1.5 million unlocked iPhones operating on the T-Mobile network right now.
The comments were made during a discussion at the 12th annual Morgan Stanley Technology, Media & Telecoms Conference in Spain. Some comments were also made about T-Mobile and its upcoming
with MetroPCS. That merger is expected to take place early next year and it seems both T-Mobile and MetroPCS feel the same way about offering the iPhone.
Metro PCS COO Tom Keys said last summer, "It would be harmful to MetroPCS to have to cut out part of our handset portfolio to accommodate one phone from one provider that the economics could be at risk."
Fierce Broadband and Wireless
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RE: What makes the device so expensive for Spring/T-Mobile?
11/22/2012 3:29:57 AM
an initial loss on hardware that is made up over the course of a contract. This is why two year contracts exist in the first place, its the same as when a company decides to buy a Samsung Galaxy S3 or whatever similarly high-end smartphone they decide to get. Hell, back in 2006 a Blackberry or even certain Nokia dumbphones cost about as much without a contract.
This initial hit on taking on new contracts is
Verizon has done
well since taking on the iPhone, and it will pay off for Sprint in another year or two. If it wasn't a profitable business, which it clearly is, then they wouldn't accept those terms in the first place. T-Mobile is in a different boat, they're the only major carrier without the iPhone and the bleeding of customers is the result of that.
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