T-Mobile Sold 500,000 iPhones, Could Top Sprint

By
A A A
Share |

T-Mobile (NASDAQ: TMUS ) announced this morning that it has sold 500,000 iPhones since the product arrived at the carrier less than one month ago. Apple (NASDAQ: AAPL ) began selling the T-Mobile iPhone on Friday, April 12. Sales were so high that it created one of the most successful weekends in the carrier's history, and reportedly left T-Mobile scrambling to replenish its supply of Apple smartphones.

By selling 500,000 units in less than one month, T-Mobile could eclipse the 1.5 million units that Sprint (NYSE: S ) averages each quarter. This would be an impressive feat considering the fact that T-Mobile is significantly smaller than Sprint and is the only carrier to offer unlimited data without throttling.

T-Mobile, however, is the only carrier that happily promotes the iPhone at full price. The iPhone 5, for example, starts at $649. This fee allows customers to purchase the device without a contract. It also enables them to avoid the high subsidies that come with other monthly packages from Sprint, Verizon (NYSE: VZ ) and AT&T (NYSE: T ).

While T-Mobile is proud of its offering (which leads to a higher up front cost but a lower monthly bill -- and potentially a better deal over time), Apple's marketing scheme has led to some criticism from bloggers who argue that the iPhone maker is being unfair.

In a piece titled, "Does Apple Store Discourage T-Mobile iPhone Sales?", BetaNews criticized Apple's in-store rate plan listings because it displayed the prices ($649 for the T-Mobile iPhone 5, $199 from other three carriers) without an immediate explanation as to why the prices vary so greatly. Some shoppers may be unaware of the savings that T-Mobile can ultimately provide.

That has not seemed to hurt T-Mobile iPhone sales, however.

Part of attraction could be due to the monthly fee. While AT&T, Sprint and Verizon start at roughly $80 per month, T-Mobile plans start at $50 per month. At that price, users will only receive 500 megabytes of high-speed data, but for an extra $10 they can receive 2.5 gigabytes. For $70 per month -- the most expansive plan available -- users supposedly get "unlimited" 4G data.

By comparison, Verizon's $80 plan offers a mere 300MB of data. From that perspective, the $649 price tag may be very easy for consumers to swallow, especially since T-Mobile will allow customers to pay for it over a two-year period.

Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at 248-636-1322 or louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ

(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Profit with More New & Research . Gain access to a streaming platform with all the information you need to invest better today. Click here to start your 14 Day Trial of Benzinga Professional



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: AAPL , S , T , TMUS , VZ

Benzinga


More from Benzinga:

Related Videos

Stocks

Referenced

Most Active by Volume

152,099,280
  • $16.13 ▼ 1.59%
76,450,549
  • $59.72 ▲ 1.07%
57,375,391
  • $36.35 ▲ 6.26%
50,140,425
  • $26.93 ▲ 0.60%
49,201,544
  • $3.17 ▲ 2.59%
39,533,031
  • $86.18 ▲ 1.33%
36,760,050
  • $13.42 ▲ 2.84%
33,109,047
  • $26.12 ▲ 1.16%
As of 4/16/2014, 04:05 PM