T-Mobile had ambitious internal goals last weekend according to the company’s Chief Marketing Officer Mike Siebert, but it beat them allowing the executive to claim that it was “one of its biggest weekends in the history of the company.” Apple Inc. (NASDAQ:AAPL)’s smartphone, the iPhone 5, drove the huge numbers according to the company.
T-Mobile, which is owned by Deutsche Telekom AG (FRA:DTE) (PINK:DTEGY) (ETR:DTE), has recently started a new campaign that differentiates it from other wireless carriers in the United States. The campaign’s keyword is “uncarrier,” and so far it appears to have made an impact on consumers.
Last Weekend T-Mobile began offering the Apple Inc. (NASDAQ:AAPL) iPhone 5 for $99 on a two year $20 per month contract. The price was much lower than anything offered by T-Mobile competitors and caused a great deal of organic buzz around the company. The campaign, along with the probable merger with MetroPCS Communications Inc (NYSE:PCS) has created huge buzz around the company.
Siebert said that the Deutsche Telekom AG (FRA:DTE) (PINK:DTEGY) (ETR:DTE) offshoot leveraged its iPhone 5 deal to captivate American consumers. Many of the company’s stores had lines outside with consumers waiting to buy their Apple Inc. (NASDAQ:AAPL) smart phone. A T-Mobile MetroPCS Communications Inc (NYSE:PCS) could have serious implications on the North American wireless market.
T-Mobile also benefited from a Verizon Communications Inc (NYSE:VZ) announcement that customers would no longer be able to upgrade their smart phones before their contract was up. Before that decision Verizon customers were allowed to upgrade four months before the end of their contract.
Commenting on the Verizon Communications Inc. (NYSE:VZ) change in policy Siebert “Verizon is amazingly successful. This was a move that will further fatten their already fat wallet. But I question whether consumers will really appreciate it.”
Apple Inc. (NASDAQ:AAPL) despite recent results, still sells the most iconic smart phone. The evidence from the T-Mobile sale bears this out. Apple Inc. (NASDAQ:AAPL) created the modern smart phone market and companies like T-Mobile are still earning money based on that work.
The U.S. wireless market is changing. Today’s news regarding several different acquisitions and mergers show that the market is heading in a direction that should see a smaller number of larger companies holding the spectrum. T-Mobile may be onto something with its “uncarrier” campaign, but it’s unlikely real sales figures will be released any time soon.
