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T-Mobile blames its poor performance on lack of iPhone

post #1 of 31
Thread Starter 
Germany's Deutsche Telekom AG reported profits that beat expectations, but blamed poor performance in its American T-Mobile business upon its inability to sell the iPhone.

"The U.S. used to be a cash cow for Deutsche Telekom," reports the Wall Street Journal, "but it has struggled there since 2008 and has been forced to invest more to keep existing customers and attract new ones."

The report said TMobile "gained 137,000 customers in the September quarter driven by wholesale growth in the prepaid business, bringing its subscriber base to 33.76 million, but the number of more valuable contract customers fell by 60,000 to 26.69 million."

No chance of getting the iPhone in the short term

Chief Executive Rene Obermann said T-Mobile's churn rate in the U.S. is being driven by the iPhone. "Consumers like T-Mobile but they also want to have the iPhone," which T-Mobile USA "has no chance of getting in the short term," the report said.

In Europe, Deutsche Telekom was an early, exclusive partner with Apple in selling the iPhone, but has recently lost its exclusive status as Apple added other carriers.

In the US however, the firm's T-Mobile business can't sell Apple's existing iPhone models at all; even though T-Mobile is, like AT&T, a GSM/UMTS carrier, it uses unique radio frequencies for its 3G service that are not compatible with existing iPhones.

Greater iPhone threat on the horizon

Apple is widely reported to be introducing a new CDMA-compatible iPhone in early 2011 that can be sold by Verizon Wireless, a move that will put even more pressure on T-Mobile.

"Judging by Apple's experience in other markets," the report stated, "adding Verizon could double iPhone's U.S. smartphone market share. In France, for instance, iPhone's market share tripled from 3% to 11% between the first and third quarters of 2009, after Apple went from one carrier to three, says Strategy Analytics. The firm's global wireless practice director, Neil Mawston, says markets like the U.K. have shown a similar pattern."
post #2 of 31
Perfect headline. Need I say more about T-Mobile?

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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post #3 of 31
Powerful statement, which says loads about the pull of the iPhone. I'm sure all four carriers will eventually have the iPhone, but it'll be years before that happens. If iPhone is going Verizon, I'm still unsure as to why Apple just doesn't make the phone compatible for all carriers.

What I do know is if Apple went with all carriers the amount of iPhones sold would be staggering.
post #4 of 31
Quote:
Originally Posted by AppleInsider View Post

In the US however, the firm's T-Mobile business can't sell Apple's existing iPhone models at all; even though T-Mobile is, like AT&T, a GSM/UMTS carrier, it uses unique radio frequencies for its 3G service that are not compatible with existing iPhones.

Yeah, who uses AWS again? If T-Mo US really wants the iPhone, then they should chit-chat with Jobs to do a penta-band iPhone supporting AWS bands. The tech is already out there (Nokia N8).

Oh and Apple, sell the iPhone unlocked in the US please. Many people are willing to live with EDGE on T-Mo, but this AT&T locked crap is bull, considering you are selling the iPhone unlocked in Canada and Mexico.
post #5 of 31
Nothing is impossible. It seems that Apple and AT&T relationship is not at its best lately. I wouldn't be surprised if the iPhone goes carrier free within the next two years.
post #6 of 31
Is this the same T-Mobile that currently has an ad on TV ridiculing the iPhone? Funny way of saying "I love you, iPhone, and wish we could be together."

Yeah, I know, the ad is harder on AT&T, but still the thrust is don't buy Apple or AT&T, get T-Mobile and some other phone you really didn't want instead.
A.k.a. AppleHead on other forums.
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A.k.a. AppleHead on other forums.
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post #7 of 31
Maybe T-Mobile shouldn't then poke fun at the iPhone and AT&T. http://www.appleinsider.com/articles...ed_by_att.html
post #8 of 31
I've been a happy unlocked iPhone 2G user on T-Mobile for a while now. I love their voice coverage and customer service. I don't bother with Edge, I just use wi-fi, which means I have an ultra-low price plan, and I get to use an iPhone for everything but out-and-about location-aware stuff.
post #9 of 31
Quote:
Originally Posted by Robin Huber View Post

Is this the same T-Mobile that currently has an ad on TV ridiculing the iPhone? Funny way of saying "I love you, iPhone, and wish we could be together."

Yeah, I know, the ad is harder on AT&T, but still the thrust is don't buy Apple or AT&T, get T-Mobile and some other phone you really didn't want instead.

Hey, T-Mobile gets props for putting that incredibly cute model in their TV ad. I don't even remember anything else in the ad. Some dorks were in it...?

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
Reply

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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post #10 of 31
[QUOTE=AppleInsider;1746803]Germany's Deutsche Telekom AG reported profits that beat expectations, but blamed poor performance in its American T-Mobile business upon its inability to sell the iPhone.

THIS is supposed to be like dialogue from a brain surgeon??? These people are SERIOUSLY stupid when it comes to marketing in the US and deserve to CONTINUE to get the crap beat out of them. I've been a T-mumble customer since the "Voicestream" days and they have continually dumped on us.. As soon as iPhone 5 hits the market - I'm done with these clowns..
post #11 of 31
[QUOTE=Bwinski;1746838]
Quote:
Originally Posted by AppleInsider View Post

Germany's Deutsche Telekom AG reported profits that beat expectations, but blamed poor performance in its American T-Mobile business upon its inability to sell the iPhone.

THIS is supposed to be like dialogue from a brain surgeon??? These people are SERIOUSLY stupid when it comes to marketing in the US and deserve to CONTINUE to get the crap beat out of them. I've been a T-mumble customer since the "Voicestream" days and they have continually dumped on us.. As soon as iPhone 5 hits the market - I'm done with these clowns..

I am OVERAWED by your USE of capital letters AND think it's absolutely AWESOME for drawing the viewer's attention to specific words, such as PRAT, PILLOCK and the lesser known TWANNOCK.
post #12 of 31
Perhaps T-mo will have to join/merge with Sprint to have a fighting chance at survival.

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #13 of 31
Quote:
Originally Posted by JamesJpn View Post

Maybe T-Mobile shouldn't then poke fun at the iPhone and AT&T. http://www.appleinsider.com/articles...ed_by_att.html

Maybe they are teasing Apple.
post #14 of 31
Apple's strategy is to compete only where necessary (which is android on Verizon, not t-mobile at all), so they will further marginalize t-mobile until they disappear or merge. Same with Sprint. Wouldn't be surprised if only two carriers remain when the dust settles.
post #15 of 31
Quote:
Originally Posted by Pennywse View Post

Powerful statement, which says loads about the pull of the iPhone. I'm sure all four carriers will eventually have the iPhone, but it'll be years before that happens. If iPhone is going Verizon, I'm still unsure as to why Apple just doesn't make the phone compatible for all carriers.

What I do know is if Apple went with all carriers the amount of iPhones sold would be staggering.

You’ve sorta answered your own question. The sales would be staggering… if they could produce enough units to supply any and all sales, but as we’ve seen even with handful of countries and carriers the iPhone was still perpetually sold out. I think it was only yesterday that Apple’s website listed “shipping within 24 hours” in regards to the iPhone.

In other words, if you can only make x-units, and you’re sure you’ll sell x-units on less carriers who are willing to pay you more for the privilege that is how you maximize revenue and profits. We can look at exclusivity between vendors and retailers or carriers to see that this is common way to do business.


Quote:
Originally Posted by pika2000 View Post

Yeah, who uses AWS again? If T-Mo US really wants the iPhone, then they should chit-chat with Jobs to do a penta-band iPhone supporting AWS bands. The tech is already out there (Nokia N8).

According to the FCC the iPhone 4 is a pentaband, it just doesn’t include AWS as the 5th band.

http://www.engadget.com/2010/06/07/i...-pentaband-3g/
Quote:
Originally Posted by Robin Huber View Post

Is this the same T-Mobile that currently has an ad on TV ridiculing the iPhone? Funny way of saying "I love you, iPhone, and wish we could be together..

To be fair, the ad digs on AT&T, not Apple or the iPhone, expect to say that the iPhone is hindered by AT&T’s network.
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Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
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post #16 of 31
With T-Mobile's prices, I might forgive the lack of 3g...

Seriously, I can't get reception at all in Orange, CA at Chapman Law School. I am so on to a new carrier when it becomes available its not even funny. It has infuriated me that they cannot even provide voice coverage when my friends on verizon and tmobile have full bars in the basement. I just hope Apple brings it out on all carriers in early 2011. Sprint too!
post #17 of 31
Quote:
Originally Posted by Robin Huber View Post

Is this the same T-Mobile that currently has an ad on TV ridiculing the iPhone? Funny way of saying "I love you, iPhone, and wish we could be together."

Yeah, I know, the ad is harder on AT&T, but still the thrust is don't buy Apple or AT&T, get T-Mobile and some other phone you really didn't want instead.

The ad pretty clearly states the only problem with the iPhone is AT&T. The ad was aimed at apple, not consumers...
post #18 of 31
Quote:
Originally Posted by Ochyming View Post

Maybe they are teasing Apple.

Yes, like a boy in elementary school pulls on a girl's hair and puts glue on her pencil because he likes her. Makes sense to me!
post #19 of 31
Wait, T-Mobile thinks they could do better if they had the iPhone? I thought Apple's usurious subsidy demands meant selling the iPhone actually hurt your bottom line?

At least one member, can't remember who, is quite certain of this. Be interested in hearing from him what he makes of this.
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They spoke of the sayings and doings of their commander, the grand duke, and told stories of his kindness and irascibility.
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post #20 of 31
Quote:
Originally Posted by addabox View Post

Wait, T-Mobile thinks they could do better if they had the iPhone? I thought Apple's usurious subsidy demands meant selling the iPhone actually hurt your bottom line?

At least one member, can't remember who, is quite certain of this. Be interested in hearing from him what he makes of this.

Personally, I never mentioned usury actions by Apple but at one time early on in the iPhone’s release I proposed that AT&T may not be making that much on the iPhone due to the network demands put upon it thus causing AT&T to expand faster than previously planned as well as the exclusivity deal with Apple commanding a hefty legal price. If that was ever true, that is no longer the case as their profits per quarter would have clearly indicated a trend with ever increasing iPhone sales.

Directly regarding this person you mention, it also seems unlikely AT&T would have waved upgrade fees for most iPhone users who wanted to upgrade to the iPhone 4 if the iPhone deal with Apple didn’t benefit them financially.
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Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
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post #21 of 31
iPhone is a magical device which will solve all your problems, including you - T-Mobile.
post #22 of 31
...but,

...but, how can this be?

Android is winning a million blog posters have told me so.
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post #23 of 31
Quote:
Originally Posted by hill60 View Post

...but,

...but, how can this be?

Android is winning a million blog posters have told me so.

And from a certain perspective, the blog posters are correct. From another perspective, though, that doesn't really matter.

In terms of cell phone OSes, Android is deploying units at a faster rate than any other OS that's currently available. However, that's split up amongst many different manufacturers, and in some cases several quite distinct models from a single manufacturer. Google isn't even necessarily getting substantial royalties from all those manufacturers, because Google has open sourced Android, so all those manufacturers are permitted to obtain, customize, and redistribute their versions of Android without purchasing anything.

However, in terms of the popularity of any single model of phone, the iPhone is currently the clear leader.

So, it follows that if a carrier is looking for a single new product that can, by itself, have the biggest impact in terms of improving its appeal to customers, then the iPhone is that killer product.
post #24 of 31
You can't blame poor quarterly profits on a factor you have no control over. That's insane and stupid. Someone needs to fire that idiot.
post #25 of 31
Quote:
Originally Posted by Sofabutt View Post

You can't blame poor quarterly profits on a factor you have no control over.

Sure you can. Hypothetically, for example, if a series of nuclear blasts destroyed a large percentage of your clients' coverage area, that would probably turn out to be a factor beyond your control, and indeed it would almost certainly result a huge drop in your quarterly revenues and profits.

So, yes, in general, factors beyond your control can very easily be the primary cause of poor financial performance.

Disclaimers:
1) I am not a terrorist. I have no plans to use a nuclear device to destroy a large percentage of T-Mobile's, or anybody elses', coverage area.
2) I am not a fool. I would never attempt to equate the impact of the iPhone's popularity to the impact that would come from a series of nuclear detonations.
3) I simply wanted to point out the fact that sometimes, factors totally beyond your control really can have a direct impact on your financial performance.
post #26 of 31
Well, there's always got to be a lot of room for improvement. It's as if the only limit for technology nowadays is imagination.
post #27 of 31
For not having the business ability to negotiate with Apple.
post #28 of 31
There service in my opinion is the best bar-none. I do however like the iPhone a little more and will risk getting bad customer service if T-Mobile doesn't have the iPhone available on their network by the release of the 5th gen iPhone mid 2011-I'll be switching to AT&T to get one. I just hope for the best but plan for the worst in this situation. I hope AT&T's cs is better since I tried to port my number to them 7 years ago. Time will tell
post #29 of 31
2 Bad....perhaps next time.

One thought he was invincible... the other thought he could fly.

They were both wrong.

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One thought he was invincible... the other thought he could fly.

They were both wrong.

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post #30 of 31
this is a sure sign that t-moble will get iphone soon....what CEO wants NOT to many money if not having the iphone that could be a wedge to use against others. TM is hungry, VZ plays coy
this is more reasons for me waiting till jan to get my iPhone 4, more competition helps lower my monthly cost
I APPLE THEREFORE I AM
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I APPLE THEREFORE I AM
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post #31 of 31
So T-Mobile blames its poor performance on lack of iPhone while AT&T blames its poor performance on having the iPhone.
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