T-Mobile CEO Makes Strong Case for iPhone Sales in FY13 (VZ) (T) (S) (AAPL)
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Much speculation surrounds whether or not T-Mobile's bid to sell Apple's (Nasdaq: AAPL) iPhone at full price will work out as expected. Here's a little data that might prove it will, at least, to the savvy smartphone shopper.
T-Mobile will start selling the iPhone 5 in 2013, asking an initial $650 per device outlay for the right. That compares with rivals like Verizon (NYSE: VZ), AT&T (NYSE: T), and Sprint (NYSE: S) subsidizing the device down to about $199 for the entry-level model.
The NY Post cited T-Mobile CEO John Legere's plan for the iPhone today. Under one scenario, despite the tough-to-swallow pill at the start of the contract, consumers will make out better over a two-year time frame with T-Mobile versus peers. Consumers will pay about $2,330 over the 24 months, versus $2,600 at Verizon.
Mainly, consumers will be eying data plans. At T-Mobile, customers are given unlimited 4G access, though on a less-robust network than peers. Data for other carriers generally takes into account usage of under two gigabytes per month.
Another scenario has the customer paying just $99 for the iPhone, with the rest paid off over the life of the contract.
BMO Capital modeled expectations on T-Mobile's contribution to Apple's top- and bottom-line numbers in calendar 2013 following the announcement last week.
Shares of Apple are down about 0.3 percent Monday, well off of session lows.
T-Mobile will start selling the iPhone 5 in 2013, asking an initial $650 per device outlay for the right. That compares with rivals like Verizon (NYSE: VZ), AT&T (NYSE: T), and Sprint (NYSE: S) subsidizing the device down to about $199 for the entry-level model.
The NY Post cited T-Mobile CEO John Legere's plan for the iPhone today. Under one scenario, despite the tough-to-swallow pill at the start of the contract, consumers will make out better over a two-year time frame with T-Mobile versus peers. Consumers will pay about $2,330 over the 24 months, versus $2,600 at Verizon.
Mainly, consumers will be eying data plans. At T-Mobile, customers are given unlimited 4G access, though on a less-robust network than peers. Data for other carriers generally takes into account usage of under two gigabytes per month.
Another scenario has the customer paying just $99 for the iPhone, with the rest paid off over the life of the contract.
BMO Capital modeled expectations on T-Mobile's contribution to Apple's top- and bottom-line numbers in calendar 2013 following the announcement last week.
Shares of Apple are down about 0.3 percent Monday, well off of session lows.
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