Apple Inc. (NASDAQ:AAPL) is set to debut two new smartphones soon: the iPhone 5S and the iPhone 5C. The former will be a small upgrade from the current iPhone 5 and the latter will be the budget smartphone that everyone’s been waiting for. Since the perennially popular phone is now available through all four of the major carriers, this will be the first time the phone debuts on T-Mobile. This leads some market experts to believe that T-Mobile has something to offer potential iPhone 5C buyers that other carriers don’t have, and that’s no contract.
Customers can purchase the iPhone and not have to sign a contract. Most shoppers have to sign up for a two-year contract to get the phone for a subsidized price. This means that shoppers are also tied down to a carrier for two years unless they pay a hefty fee to break the contract. T-Mobile also offers more flexible service plans.
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That said, Sprint Corporation (NYSE:S) could be another carrier that could benefit iPhone buyers with plans for unlimited text, data, and calls.
iPhone 5C will be considered the “budget” phone
Although the iPhone 5C will be considered the “budget” phone, it is still expected to retail between $400 and $500 when unsubsidized. The phone will likely be available worldwide, but it’s predicted that China will benefit the most from this particular model. In August, Morgan Stanley published survey results from China’s market claiming that the ideal price for the iPhone 5C would be $486. As Neil Hughes for Apple Insider explained, “The $486 that Chinese customers would reportedly pay for an “iPhone 5C” comes in 22 percent higher than Huberty’s estimated price of $399 for the anticipated smartphone. She believes this signals that Apple Inc. (NASDAQ:AAPL) could gain even more market shares than the survey indicated, or that the company could obtain even higher margins than expected on the device.”
Apple Inc. (NASDAQ:AAPL) is in a good spot right now.