T-Mobile Will Sell iPhone 5 (Unsubsidized) In 2013
T-Mobile announced that iPhone will be amongst the Apple products which the carrier will launch in 2013. However, T-Mobile also announced that the network will remove all device subsidies in 2013, which means that new subscribers will have to pay full price of the handset, buy the handset on installment, or bring their own compatible handset.
T-Mobile USA CEO John Legere confirmed the addition of iPhones in 2013, which should include the latest iPhone 5, will attract more customers to the carrier. However, Legere also announced that the carrier will eliminate its Classic rate plans that include device subsidies and instead will only offer Value plans to customers.
T-Mobile claimed that 80 percent of its activations in the last quarter were for value plans. However, with the iPhone 5 priced at a steep rate the question may arise if users will want to pay the unsubsidized price of the iPhone 5. Other major U.S. carriers offer the iPhone 5 for around $200 on a two-year contract.
"T-Mobile will have to explain to customers that they will actually save money over the length of a two-year contract by paying a lower value plan rate. And while there would be truth in T-Mo's claims, it's still a hard sell to many consumers, especially with the iPhone's huge price tag dangling in front of them," reported Gigaom.
Legere also said that T-Mobile will offer the iPhone for $99 and then charging $15-$20 per month for 20 months on top of the monthly plan in order to pay off the full cost of the smartphone. The customer will be responsible for the full cost of the device, as such T-Mobile can offer lower base plan pricing.
"When this device rolls out I can only tell you it will be a dramatically different experience, and I can only tell you that of all the reports that have been written about what's going to happen when it comes out, they're all wrong," said Legere.
We will have to wait to find more what exact pricing will T-Mobile bring for the iPhone 5. A 55-minute video of the presentation from John Legere can be found below.