Can Apple Ramp It Up for a Stronger Second Half?
Tuesday, it was announced that Deutsche Telekom’s (DTEGY.PK) T-Mobile was going to start carrying the iPhone 5 on its network starting April 12, with pre-orders beginning April 5. It took a lot of work to make this happen, as T-Mobile’s 4G network had previously been unable to support the iPhone 5.
It’s possible that the iPhone 5 could thoroughly benefit T-Mobile as it changes from the traditional 2-year contract approach to monthly plans. Since T-Mobile has been losing subscribers recently, having the iPhone 5 available on a monthly plan could draw in customers that want the phone without the commitment required by other carriers.
On the flip-side, T-Mobile offering the iPhone 5 could be a boost for Apple, as it is a new channel to sell the device. And, the timing for the release could be extra beneficial…
As there are no new products at the moment, it made sense for Apple’s guidance for the coming quarter to be conservative. But, now that the company has a new channel to distribute its product, it may see higher sales than it had originally predicted.
With its iPhones already offered by the other big carriers, coming out on T-Mobile — the first carrier to offer an Android smartphone, which quickly stormed the rest of the global market — and launching several new products later in the summer if rumors prove correct, Apple may have a strong second half of 2013.
Potential deals with China Mobile (NYSE:CHL) — the world’s largest carrier — and Japan’s NTT Docomo (NYSE:DCM) could also see the iPhone offered to an additional 764 million customers. The additional avenues for sales may also help an iPhone 5S beat the iPhone 5 in sales when it launches.
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