Addition of Apple's iPhone helps T-Mobile USA to strongest growth in 4 years
After steadily losing customers for years, T-Mobile had a total of 1.1 million customer net additions in its second quarter of fiscal 2013, with much of that success attributed to the addition of Apple's iPhone.
T-Mobile's second quarter, the results of which were reported on Thursday, was the company's strongest growth in four years. The company touted the successful launch of Apple's iPhone 5, as well as its new Simple Choice and Jump plans.
The iPhone debuted on T-Mobile, America's fourth-largest wireless carrier, in April, going on to sell 500,000 units in less than a month. T-Mobile revealed on Thursday that the iPhone has accounted for about 29 percent of the carrier's branded gross customer additions and upgrade smartphone sales, excluding MetroPCS, since its launch.
T-Mobile has attempted to differentiate itself from the competition with an initiative dubbed "Un-carrier." The company was the first to offer an early upgrade program for its customers ??a plan that was quickly followed by both Verizon and AT&T.
"T-Mobile's Un-carrier approach has clearly resonated with consumers. By fixing the things that drive them mad, like contracts and upgrades, and freeing them from the two-year sentences imposed on them by our competitors, they are choosing the new T-Mobile in unprecedented numbers," said T-Mobile President and Chief Executive John Legere. "We are just beginning and we will continue to apply this innovative thinking to the Un-carrier offers we create and to the internal operations of our company, which taken together are driving significant shareholder value creation."
Last week, Consumer Intelligence Research Partners estimated that the addition of Apple's iPhone may have kept 400,000 customers from leaving T-Mobile last quarter. The survey also found that 28 percent of T-Mobile subscribers planning to change devices in the next year say they will choose the iPhone.
T-Mobile was the last major carrier in the U.S. to gain access to Apple's iPhone. Previous losses seen by the company were attributed in large part to the lack of the iPhone, which is the most popular smartphone in America.
T-Mobile's second quarter, the results of which were reported on Thursday, was the company's strongest growth in four years. The company touted the successful launch of Apple's iPhone 5, as well as its new Simple Choice and Jump plans.
The iPhone debuted on T-Mobile, America's fourth-largest wireless carrier, in April, going on to sell 500,000 units in less than a month. T-Mobile revealed on Thursday that the iPhone has accounted for about 29 percent of the carrier's branded gross customer additions and upgrade smartphone sales, excluding MetroPCS, since its launch.
T-Mobile has attempted to differentiate itself from the competition with an initiative dubbed "Un-carrier." The company was the first to offer an early upgrade program for its customers ??a plan that was quickly followed by both Verizon and AT&T.
"T-Mobile's Un-carrier approach has clearly resonated with consumers. By fixing the things that drive them mad, like contracts and upgrades, and freeing them from the two-year sentences imposed on them by our competitors, they are choosing the new T-Mobile in unprecedented numbers," said T-Mobile President and Chief Executive John Legere. "We are just beginning and we will continue to apply this innovative thinking to the Un-carrier offers we create and to the internal operations of our company, which taken together are driving significant shareholder value creation."
Last week, Consumer Intelligence Research Partners estimated that the addition of Apple's iPhone may have kept 400,000 customers from leaving T-Mobile last quarter. The survey also found that 28 percent of T-Mobile subscribers planning to change devices in the next year say they will choose the iPhone.
T-Mobile was the last major carrier in the U.S. to gain access to Apple's iPhone. Previous losses seen by the company were attributed in large part to the lack of the iPhone, which is the most popular smartphone in America.
Comments
It's actually really surprising T-Mobile had numbers like this.
Every T-Mobile ad I see is for an Android device
AT&T's activations were 50% iPhone.
Verizon's activations were 50% iPhone.
How are you not banned yet?
That's great numbers for the 5 on T-Mobile then!
I think at AT&T and Verizon the 5 only makes up half of their iPhone shipments (25% of total smartphone shipments?), with the 4 and 4S making up the other half.
I suggest you read http://www.theonion.com to find out.
It seems T-m should do better when new iPhones come out later this year. Then, they will be able to offer the current, plus the "N-1" version of the iPhone at a discount price. Good for them!
Quote:
Originally Posted by blackbook
It's actually really surprising T-Mobile had numbers like this.
Every T-Mobile ad I see is for an Android device
Not surprising at all. My teenage kid is using my old iPhone 4 unlocked from AT&T and I just (pre)pay $30 per month for 5GB data, unlimited texting and 100 minutes of talk time. Compared that to the rest of the operators.
Quote:
Originally Posted by blackbook
How are you not banned yet?
It was high level sarcasm so if it needs to go down to grade school level for ya, that can be arranged.
Most consumers haven't got a clue what the industry says or doesn't say.
Why would he be banned?
You mean he wasn't being really cleverly sarcastic and funny?
Leave it to another one to be clueless.
Quote:
Originally Posted by Constable Odo
It's odd that consumers are still buying iPhones. Most of the smartphone industry says that the iPhone has fallen woefully behind the times and that almost no one would buy a smartphone with a tiny display like the iPhone has. It's claimed that a 4.7" display is the new minimum display size that a consumer is willing to tolerate. Supposedly everyone on the planet wants large, larger and largest smartphone displays. The bigger the better. Samsung Galaxy smartphones are like the latest SUVs of the smartphone industry and the iPhone is just an old compact car. Consumers should have realized this by now. Android smartphones have 80% market share and the iPhone is finished. Apple is doooooomed.
Only 21% smartphones sales at T-mobile were iPhones - so consumers are buying all kinds of phones at T-Mobile. some like SUVs some compact cars, all good for T-Mobile
Just goes to show that user experience trumps screen size.
Quote:
Originally Posted by blackbook
How are you not banned yet?
We keep him around for the entertainment value.
And by jove, in this case I have to agree with him. Apple. Is. Dooooomed. I tell ya!
. ps. usually, when someone writes 'Apple is dooomed' (note all the extra o's) it's typically the functional equivalent of satire right there. Usually a sign of not being altogether serious, and removing the requirement for the /s disclaimer. I think. Maybe. Ya think?
Quote:
Originally Posted by blackbook
It's actually really surprising T-Mobile had numbers like this.
Every T-Mobile ad I see is for an Android device
Not so surprising really. If for no other reason than this (pent-up demand aside):
- When buying an unlocked iPhone from Apple, you're given two options; SIM-Free, or a complimentary T-Mobile SIM.
From a sales perspective, that's the functional equivalent of having a "Featured App" or "Editor's Choice" on the iTunes App Store.
I'm opting for that myself when I replace my 3GS. Their service coverage isn't quite as comprehensive in my area as Verizon or AT&T but it's acceptable, and their price and service packages are a FAR better value. They'll catch up quickly if they keep that up and their sales trends continue...