T-Mobile will join the ranks of AT&T Inc. (NYSE:T), Verizon Communications Inc. (NYSE:VZ), and Sprint Nextel Corporation (NYSE:S) next year when they finally become a carrier for the iPhone.
A representative for T-Mobile explained the details to ABC News. They said, “T-Mobile has entered into an agreement with Apple Inc. (NASDAQ:AAPL) to bring products to market together next year. Additional details will be made available at a later date.”
The following is our rough coverage of the 2021 Sohn Investment Conference, which is being held virtually and features Brad Gerstner, Bill Gurley, Octahedron's Ram Parameswaran, Glenernie's Andrew Nunneley, and Lux's Josh Wolfe. Q1 2021 hedge fund letters, conferences and more Keep checking back as we will be updating this post as the conference goes Read More
The company’s chief executive officer, John Legere, added, “What was missing? A certain number of customers wouldn’t come to the store if we didn’t have the iPhone. We worked very, very hard for a deal that made sense for us.”
The only potential downside to T-Mobile’s decision to add the iPhone, is that they won’t be paying any subsidies in order to offer it at a lower price. Customers will have to pay a premium for the phone, much like they would with prepaid services, but they will get a cheaper monthly rate. T-Mobile will also let customers upgrade their phones, which would allow certain customers to pay just $99 for the iPhone and allow them to pay the rest in small amounts every month. Since T-Mobile offers 4G for less money than most competitors, customers might find it to be quite a value.
There is no set date on when we can expect the iPhone to arrive at T-Mobile, but Legere mentioned, “When this device rolls out I can only tell you, it will be a dramatically different experience, and I can only tell you that of all the reports that have been written about what’s going to happen when it comes out, they’re all wrong.”
Research analysts predict that T-Mobile’s addition will offer minimal impact, but that it could improve overall sales for Apple Inc. (NASDAQ:AAPL). They further predict that T-Mobile could sell 4 million iPhones during C2013, or at least two percent of their 179 million forecast.