T-Mobile blames its poor performance on lack of iPhone
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."
"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."
Comments
What I do know is if Apple went with all carriers the amount of iPhones sold would be staggering.
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?
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.
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.
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...?
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..
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.
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.
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.
Yeah, who uses AWS again?
According to the FCC the iPhone 4 is a pentaband, it just doesn’t include AWS as the 5th band.
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.
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!
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...
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!
At least one member, can't remember who, is quite certain of this. Be interested in hearing from him what he makes of this.
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.