It seems as though T-Mobile is ending the discount on iPhone 5 and has sprinkled $50 onto the 16GB version’s price. This brings the version to $149.99. Financial Chief Braxton Carter stated that raising the price was T-Mobile’s plan the whole time—even though it wasn’t stated at launch that it was for a limited time. The price increase also brings the phone’s whole price to $629.99 following a two year plan which was $20 in monthly payments.
At the J.P Morgan conference, the Financial Chief said this of the price increase: “When we look at the overall landscape, there’s no need to continue with initial promotional pricing we had with the iPhone. It was a planned promotion for a very limited of time to create momentum.” Perhaps customers should’ve expected it to be limited time only? As in it was implied even though it wasn’t stated?
T-Mobile snagged MetroPCS and went public earlier this year in the U.S. Last month it became offering the popular iPhone and has managed to move roughly 500,000 iPhone 5 devices. The phones sold like hotcakes as it was offered at a big discount compared to other providers and from Apple. While it is now within the price range of its competitors, it is still in a good position to move more units as it is $20 less than the unlocked 16GB unit offered by Apple at $649.99.
The iPhone 5 is a main eventer for drawing in customers to their new payment plan approach. Earlier this year, T-Mobile dropped their contract approach and is running with what they have termed “Uncarrier”—for marketing purposes. With this new approach, users pay for their devices with a fee that is a portion of the full phone price and a two year deal of payments. It saves money, but has come under a bit of legal fire in the state of Washington. The main thing about T-Mobile’s “Uncarrier” is that users don’t need to sign up for a plan on paper, but it is still pretty much a conventional carrier plan.
The purchase of MetroPCS allows for the company to really get in the mix with colossal carrier competitors AT&T, Sprint, and Verizon—not in the order of their size and reach. Currently T-Mobile is combining the networks and systems in one titan of a carrier apparently
T-Mobile’s Chief Tech Officer Neville Ray mentioned that MetroPCS will be shifted over to their network starting in Las Vegas. The intent is that it will give the city better speed and performance and will occur tonight.
Back to the iPhone 5’s price increase, it might be a bit of damper on plans to purchase the popular smartphone from T-Mobile, but overall you would end up saving some change as opposed to trying a different carrier or going through Apple’s site or an Apple store. That said, it would’ve been best if it was announced when the iPhone 5 was launched in the T-Mobile lineup in April.