Print 30 comment(s) - last by jthistle.. on Jan 10 at 2:24 PM

John Legere  (Source:
T-Mobile is the last of the major U.S. carriers to join the iPhone bandwagon

T-Mobile USA's CEO said that the company will finally begin selling the iPhone and eliminate cell phone subsidies in about three to four months.

"They're all, I would call them, in three to four months as opposed to six to nine months," said John Legere, T-Mobile USA CEO.

Last year, T-Mobile said it would try to bring in more customers from rivals by offering the iPhone and cutting cell phone subsidies in 2013. By eliminating these cell phone subsidies, customers can enjoy lower service prices and more flexibility (meaning that customers will pay the entire purchase price of the phone right off the bat instead of getting a discount in exchange for a two-year contract).

Meanwhile, rivals like Verizon and AT&T still depend on subsidizing cell phones to give device discounts while pulling customers into two-year contracts.

"If the old industry structure chooses to ignore what we do, that's a potential," said Legere.

T-Mobile is the last of the four major U.S. carriers to sell the iPhone. AT&T was the first carrier to sell Apple's smartphone when it was released in 2007. In early 2011, Verizon finally got its hands on the iPhone as well, and later that year, Sprint started selling the iPhone 4 and 4S with unlimited plans (which was a competitive edge, considering AT&T and Verizon had both nixed their unlimited data plans for tiered packages).

T-Mobile is now moving along with its introduction of the iPhone as well, and seeks a competitive edge of its own with the elimination of cell phone subsidies.

T-Mobile also has a few other tricks up its sleeve, such as a possible merger with MetroPCS. The companies are currently seeking approval.

Source: Reuters

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

RE: Phone prices
By Gunbuster on 1/10/2013 11:27:58 AM , Rating: 2
What I'm saying is why do smartphones cost $700? You can go to target and pick up a prepaid flip phone for $29. It connects to the same network, has two screens (small ones), Bluetooth, etc...

Now how does a smartphone BOM jump over 2000%? The manufactures hide the cost of the phone behind the subsidy and are happily making huge profits.

RE: Phone prices
By Mint on 1/10/2013 12:53:38 PM , Rating: 2
The top smartphones cost that much because they are quasi-monopolies. If someone is pretty dead set on Apple - whether through iTunes investment, marketing, trust, friends, whatever - then Apple will price their phone according to what people can afford, not according to cost.

The Galaxy Note II is the only phone with an inductive stylus, and even beyond that there really isn't anything that offers the same software, size, battery life, AMOLED, etc. Samsung doesn't have to worry about competition, so its demand is not as elastic with price as most products.

If smartphones were really such money makers, Samsung and Apple wouldn't be getting 90%+ of the industry profits. Everyone else is pricing them as low as they can while recouping development costs. Blame the consumers for not rewarding them enough.

Finally, and most importantly, most smartphone contracts cost $2000+. Not many people are going to stray away from the biggest brands just to save 5-10%.

"I modded down, down, down, and the flames went higher." -- Sven Olsen

Latest Headlines
Inspiron Laptops & 2-in-1 PCs
September 25, 2016, 9:00 AM
The Samsung Galaxy S7
September 14, 2016, 6:00 AM
Apple Watch 2 – Coming September 7th
September 3, 2016, 6:30 AM
Apple says “See you on the 7th.”
September 1, 2016, 6:30 AM

Most Popular Articles5 Cases for iPhone 7 and 7 iPhone Plus
September 18, 2016, 10:08 AM
Laptop or Tablet - Which Do You Prefer?
September 20, 2016, 6:32 AM
Update: Samsung Exchange Program Now in Progress
September 20, 2016, 5:30 AM
Smartphone Screen Protectors – What To Look For
September 21, 2016, 9:33 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki