T-Mobile Unsubsidized iPhone Will Launch In Three To Four Months: Will The Gamble Pay Off?

By Jimmie Geddes email: j.geddes@mobilenapps.com | Jan 11, 2013 05:34 PM EST

Share This Story

  • Print
  • Email

T-Mobile's CEO, John Legere has officially confirmed that T-Mobile will begin selling the carrier's first iPhone in three to four months along with no subsidies. Is it really a wise move to gamble on the iPhone with an unproven business model?

Follow us

T-Mobile is the last of the four major US carriers to offer the iPhone. Late last year Apple and T-Mobile announced that they had made an agreement allowing T-Mobile to sell Apple products. T-Mobile is going to try a new tactic in the US market - it's going to remove subsidies customers usually pay carriers for devices sold at a discount in exchange for signing a 2-year contract. Most carriers around the world offer this kind of deal and T-Mobile is hoping it will take off in the U.S.

Reuters recently spoke to T-Mobile's CEO about the plan:

The company hopes to attract customers from bigger rivals like AT&T Inc (T.N) and Verizon Wireless (VZ.N)(VOD.L) with the combination of selling iPhones and removing subsidies, which would be a first for the U.S. wireless industry.

The executive said he could possibly increase T-Mobile USA's market share by 5 percent or higher from bigger rivals who still depend on subsidizing phones to give their customers a device discount in exchange for tying them into a two-year contract.

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

T-Mobile knows it's taking a gamble with removing subsidies, as that's how most carriers ensure 24 monthly payments from customers in exchange for a lower price at checkout. It'll be very interesting to see if launching the iPhone with this type of gambles pays off.

Get the Most Popular Mobile&Apps Stories in a Weekly Newsletter

© 2014 Mobile & Apps All rights reserved. Do not reproduce without permission.

Join Our Conversation

Smartphones
LG Google Nexus 5 LG Google Nexus 5 back on sale from Google Play
Here’s the new ‘Microsoft Lumia’ brand, and what will happen to existing Nokia Lumia devices
LG G Watch R starts global rollout, hitting Europe first
Google Nexus 6 UK launch reportedly delayed until December
Tablet / Laptop / PC
Dell Venue 7 and Venue 8 Dell unveils Venue 7 and Venue 8 Android 4.3 Jelly Bean tablets
Retina iPad Mini facing delays, may not launch until early next year
Refurbished 128GB iPad with Retina Display now available on the Apple Online Store
Samsung Galaxy Note 10.1 – 2014 Edition: Pricing and availability now official
Gadgets
Amazon Logo Amazon reportedly to launch ‘Firetube’ set-top box before 2013 holidays
Samsung Galaxy Note 3 and Galaxy Gear India launch: Pricing and availability
Samsung Galaxy Gear Android smartwatch now up for pre-order in Canada
Samsung Galaxy Gear 2 reportedly in the works already, may debut at CES or MWC 2014
OS / Software
HTC Logo HTC reportedly considering Android/Windows Phone dual-booting smartphone as Microsoft pushes for deeper Windows mobile integration
iOS 7 Chrome Incognito mode leaks private searches due to bug
Sprint HTC One Android 4.3 Jelly Bean already rolling out, AT&T, T-Mobile & Verizon to follow
Microsoft Windows 8.1 now available for pre-order
Internet / Social Media
Google Downtime Google blacks out for two minutes, causes 40 percent drop in world’s Internet traffic
Xbox Music web player is live and ready for Xbox Music Pass subscribers
Facebook Android app collected phone numbers even if users never logged in
Firefox 22 brings support for web video calls, 3D gaming, and Unreal Engine 3
What's App
Flipboard for Windows Phone Flipboard for Windows Phone finally available, but requires 1GB of RAM (VIDEO)
Vine gets major update, lets you upload previously-shot videos & more (VIDEO)
BlackBerry Messenger (BBM) finally hits Windows Phone – Available as a free download now
Instagram releases Bolt ephemeral messaging app in select markets to challenge Snapchat
Copyright © 2014 Mobile & Apps All rights reserved. mobilenapps
Real Time Analytics