T-Mobile reports 500K iPhone sales in less than one month
In its financial report for the first quarter of 2013 published on Tuesday, T-Mobile said its earnings dipped from the year ago period, but noted a strong second quarter may be in the offing after selling 500,000 iPhones since sales of Apple's handset started on April 12.
The nation's fourth-largest wireless carrier saw a 7.1 percent year-over-year decline in revenues for the quarter ending March 31, with adjusted earnings before tax, depreciation and amortization reaching $1.2 billion, down 7.5 percent, reports All Things D. The half-million iPhone sales weren't accounted for in the first quarter.
Customers line up ahead of T-Mobile's iPhone launch. Image via BTIG Research's Walter Piecyk (@piecykw)
T-Mobile began selling the iPhone less than one month ago on April 12, with Apple's handset debuting on the so-called "Un-Carrier's" network alongside a no-subsidy pricing structure. Under the newly formulated offerings, a 16GB iPhone 5 is sold for a $99 upfront fee, with the remaining device cost to be amortized in $20 installments spread over the following 20 months.
The Un-Carrier was the last of the big-four U.S. telecoms to strike a deal with Apple to sell the iPhone.
Although T-Mobile suffered a year-to-year financial dip, quarter-on-quarter numbers were up, a promising sign as the company is in the midst of building out its 4G LTE network.
?Our first quarter operating metrics and financial results are showing positive impact from the changes we began making in the fourth quarter," said President & CEO of T-Mobile John Legere. "We ended the quarter with strong operational momentum, which is continuing into the second quarter, driven by the successful launch of our Un-carrier ?Simple Choice? service plan and the introduction of the iPhone into our device line-up."
According to the results statement, branded customer net additions stood at 3,000 customers at the end of quarter one, with the sector showing positive growth for the first time since 2009. Branded postpaid net losses were at 199,000, an improvement of 61 percent from 2012, while branded prepaid net additions hit 202,000 customers. Attributing to the strong performance was a churn rate of 1.9 percent, the lowest since the second quarter of 2008.
T-Mobile ended the first quarter with roughly 34 million customers, an increase of 579,000 from the end of quarter four 2012.
The nation's fourth-largest wireless carrier saw a 7.1 percent year-over-year decline in revenues for the quarter ending March 31, with adjusted earnings before tax, depreciation and amortization reaching $1.2 billion, down 7.5 percent, reports All Things D. The half-million iPhone sales weren't accounted for in the first quarter.
Customers line up ahead of T-Mobile's iPhone launch. Image via BTIG Research's Walter Piecyk (@piecykw)
T-Mobile began selling the iPhone less than one month ago on April 12, with Apple's handset debuting on the so-called "Un-Carrier's" network alongside a no-subsidy pricing structure. Under the newly formulated offerings, a 16GB iPhone 5 is sold for a $99 upfront fee, with the remaining device cost to be amortized in $20 installments spread over the following 20 months.
The Un-Carrier was the last of the big-four U.S. telecoms to strike a deal with Apple to sell the iPhone.
Although T-Mobile suffered a year-to-year financial dip, quarter-on-quarter numbers were up, a promising sign as the company is in the midst of building out its 4G LTE network.
?Our first quarter operating metrics and financial results are showing positive impact from the changes we began making in the fourth quarter," said President & CEO of T-Mobile John Legere. "We ended the quarter with strong operational momentum, which is continuing into the second quarter, driven by the successful launch of our Un-carrier ?Simple Choice? service plan and the introduction of the iPhone into our device line-up."
According to the results statement, branded customer net additions stood at 3,000 customers at the end of quarter one, with the sector showing positive growth for the first time since 2009. Branded postpaid net losses were at 199,000, an improvement of 61 percent from 2012, while branded prepaid net additions hit 202,000 customers. Attributing to the strong performance was a churn rate of 1.9 percent, the lowest since the second quarter of 2008.
T-Mobile ended the first quarter with roughly 34 million customers, an increase of 579,000 from the end of quarter four 2012.
Comments
Quote:
Originally Posted by poksi
Oh my god! Another major setback for Apple...
They're doomed. Apple should shut it's doors. hahahahahahaha.
6 months old phone, or older?
Add this to the pile of evidence that Android will be toast in its two biggest markets (except for catering to the low end segments) when China Mobile signs on, and Apple really starts to focus on India.
Quote:
Originally Posted by Ireland
What's the highest number of phones of any model they've ever sold in one month?
It's not important. Important is f.e. comparison to over 6 millions from Verizon in the Q1, which is AFAIK larger and has better network than T-Mobile and sells already to previous iPhone users. If you add those factors to this number, then you can easily say this number is excellent! Not blockbuster, but excellent. This was rather a surprise for T-Mobile, if you ask me.
As I said before: if Apple would have larger screen model and perhaps one semi-budget, Samsung Electronics would be renamed to Samsung Rubber and producing boots, souls, surgical gloves and condoms.......IF and only if USA was the market for smartphones.
[QUOTE name="Ireland" url="/t/157410/t-mobile-reports-500k-iphone-sales-in-less-than-one-month#post_2323569"]
What's the highest number of phones of any model they've ever sold in one month?[/QUOTE]
It's not important.
[/QUOTE]
Who are you to judge it's "not important"?!
Either answer his question or move along.
Quote:
Originally Posted by anantksundaram
Who are you to judge it's "not important"?!
Either answer his question or move along.
Excuse me, I thought this was a forum not Q&A session...
Next question!
Still, is this good? We need comparable data on other phones for t mobile.
Quote:
Originally Posted by poksi
It's not important. Important is f.e. comparison to over 6 millions from Verizon in the Q1, which is AFAIK larger and has better network than T-Mobile and sells already to previous iPhone users. If you add those factors to this number, then you can easily say this number is excellent! Not blockbuster, but excellent. This was rather a surprise for T-Mobile, if you ask me.
As I said before: if Apple would have larger screen model and perhaps one semi-budget, Samsung Electronics would be renamed to Samsung Rubber and producing boots, souls, surgical gloves and condoms.......IF and only if USA was the market for smartphones.
Samsung is producing souls??! Now that's a scary thought.
Glad to see Apple doing well on T-mobile too. Will be interesting to see if other carriers follow suit. T-mobile is offering lower rates on their mobile plans, then 'financing' the iPhones to users. Net result is users pay about the same for an iPhone as on other networks. The dangerous potential distinguishment for Apple is that now Android users can get the same lower rates and pay less (by buying a $350-400 android phone or less instead of a $499 iPhone). It could be win/win. The data looks like Apple fans are willing to pay more for their iPhone, and Android users no longer will be subsidizing Apple users by paying high data rate plans the other carriers need to offset their subsidy losses to Apple. If phone advancement slows down, users hitting their 2 year point may simply choose to keep their existing phones and just enjoy low data plan rates.
What part of "half million iPhone sales weren't accounted for in the first quarter" didn't you understand?
Quote:
Originally Posted by jungmark
Next question!
Still, is this good? We need comparable data on other phones for t mobile.
Quote:
Originally Posted by Frood
Samsung is producing souls??! Now that's a scary thought.
Glad to see Apple doing well on T-mobile too. Will be interesting to see if other carriers follow suit. T-mobile is offering lower rates on their mobile plans, then 'financing' the iPhones to users. Net result is users pay about the same for an iPhone as on other networks. The dangerous potential distinguishment for Apple is that now Android users can get the same lower rates and pay less (by buying a $350-400 android phone or less instead of a $499 iPhone). It could be win/win. The data looks like Apple fans are willing to pay more for their iPhone, and Android users no longer will be subsidizing Apple users by paying high data rate plans the other carriers need to offset their subsidy losses to Apple. If phone advancement slows down, users hitting their 2 year point may simply choose to keep their existing phones and just enjoy low data plan rates.
By all statistics I have ever read, iOS generates substantially more WEB traffic than Android, taking in calculation also general perception that there are a lot more active Android handsets than iPhones, then I really don't know, how could Android users ever paying for iPhone users.
Regarding "soul" manufacturing: you can't really blame old Beatles fan from Europe, can you?
Quote:
Originally Posted by Frood
Samsung is producing souls??! Now that's a scary thought.
Glad to see Apple doing well on T-mobile too. Will be interesting to see if other carriers follow suit. T-mobile is offering lower rates on their mobile plans, then 'financing' the iPhones to users. Net result is users pay about the same for an iPhone as on other networks. The dangerous potential distinguishment for Apple is that now Android users can get the same lower rates and pay less (by buying a $350-400 android phone or less instead of a $499 iPhone). It could be win/win. The data looks like Apple fans are willing to pay more for their iPhone, and Android users no longer will be subsidizing Apple users by paying high data rate plans the other carriers need to offset their subsidy losses to Apple. If phone advancement slows down, users hitting their 2 year point may simply choose to keep their existing phones and just enjoy low data plan rates.
Phone advancement will slow down since the next big thing is already here: LTE. If you have a current model Android or iPhone with LTE it is already a fast phone for all your apps. After you pay off your subsidy on T-Mobile and then get a monthly bill decrease by $20 that is a very strong incentive to keep that phone a while longer than the old days.
Of course Sprint, Verizon, and AT&T will not reduce your bill after your subsidy has been paid off so there is a strong incentive to just sell your old phone to pay the $199 or higher cost on the new model. Why wouldn't you get the newest model for essentially free if you will not get any discount on your monthly phone bill. This model is certainly better for Apple and Samsung because it encourages people to buy new phones every 20 to 24 months. It is also good for the carriers since it locks you in contract another 2 years.
Personally I like T-Mobiles model and hope it catches on. For iPhone users especially there can be 4 months while you are waiting for that next iPhone to come out while you are holding on to one about 2 years old like the 4S customers will be doing for the 5S. It would be nice to get a discount those 4 months or so while you wait.
I also love the way carriers now charge you $36 to "activate" your phone as a hidden fee. A few years ago if you simply activated it yourself online you could usually get that $36 fee waived but now it seems much tougher. Not sure about all carriers but Sprint no longer waives the new phone activation fee even when you do it yourself. You can still go online and activate and switch between multiple phones on your account easily for free just not a new phone you buy with a subsidy. Ones off ebay for example have no charge.
Quote:
Originally Posted by poksi
Excuse me, I thought this was a forum not Q&A session...
Actually, it was a thinly-veiled request for politeness masquerading as a Q&A session......
cái gì mà nhi?u th?,:D v?a bán v?a cho r?i
My thoughts exactly.