On September 19th, Cole Brodman Chief Marketing Officer of T-Mobile informed his employees that T-Mobile would be unable to have the iPhone 5 this year. Brodman went further in expressing his feelings towards the matter with an open letter that was published last week Monday. In this letter, Brodman informed us that T-Mobile now supports 1 million iPhone users on T-Mobile’s network, and that they would love to bring the full experience to T-Mobile customers who want an iPhone, but just can’t. A lot of you are now left with a but a single question: why won’t they bring the iPhone 5 to T-Mobile? Well, it goes a little something like this…
Reason Number One Why T-Mobile isn’t Getting the iPhone 5: Android.
T-Mobile put it best when they said “In many ways, Android is rivaling and even outpacing the iPhone, including consumer adoption, market share and capabilities like support for faster 4G networks. Moreover, Android offers consumers the freedom of choice. You can choose from different colors, screen sizes, slide-out keyboards, price points and customization options, as well as enjoy the many benefits of open source innovation, cloud services and amazing apps.”
When it comes to consumer adoption, no mobile OS does it better than Android, and T-Mobile knows this. Both carriers and consumers love flexibly. Consumers who don’t like a screen that’s 3.5 inches, but want the iPhone would have to make a sacrifice, and get what Apple thinks is best for them. Android however comes in different shapes, colors, features, and most importantly prices.
Also, T-Mobile’s Android line up is no joke. With super phones like the HTC Sensation, HTC Sensation XE, HTC Amaze, T-Mobile G2X, T-Mobile myTouch 4F and many more, it is no wonder why T-Mobile has expressed their confidence in Android as a platform.
Reason Number Two Why T-Mobile isn’t Getting the iPhone 5: AT&T and T-Mobile Deal
In the event that you have not been keeping up with tech news, AT&T intends on purchasing T-Mobile once the proposed deal is analyzed, and accepted. While there are many companies who wish to see the deal negated, there is no bigger organization than the United States Government. So just what does this have to do with a T-Mobile iPhone?
Manufacturing smartphones isn’t as cheap as most of you out their believe it to be. First, we have to consider the parts needed to make the device. Next, we can looking into paying for manufacturing cost. Then, we look at paying those who make the software for the phone. Finally, we can look into advertising cost to gain the product notoriety. In all, your average smartphone retails for about $450-$550 without a new two-year agreement. The iPhone 4 specifically retails for $650 without a new two-year agreement. A price that most of us are not willing to pay.
As a result, carriers have calculated a way to sell smartphones for a more common $199 in conjunction with a two-year plan that will allow prices to appeal to consumers while still making a profit. So lets say that T-Mobile did get the iPhone 5, and later on the whole AT&T/T-Mobile deal goes through. Both T-Mobile and Apple would have sustained some losses. T-Mobile would lose out on contracts that they just made (with customers receiving the greatest benefit in this scenario), and Apple would lose out on the iPhone 5s manufacturing cost of T-Mobile GSM band iPhones.
Reason Number One Why T-Mobile isn’t Getting the iPhone 5: Apple’s No Compromise Policy
If we take a look at just about every manufacturer, we can come to the conclusion that they allow carriers to have more control than they should. With Apple, this is hardly the case. Take a look at the iPhone 4 on both AT&T, and Verizon. Notice that their prices for the iPhone 4 are always the same. Why wouldn’t a company who is selling the same product as their competitor not competitively price their stock the same way they do with their other devices? That’s because Apple sets their prices in stone with each carrier for optimal profit.
For those of you who are unfamiliar with T-Mobile’s policy, it allows a user to obtain an unlocking code within 120 days after you have purchased a device on their network, regardless of a two-year plan. With a deal like that, Apple would lose out on over seas business (where the iPhone is commonly sold for a much higher price) as people would purchase the iPhone from T-Mobile, have T-Mobile unlock it and then terminate their contract as a “cheaper” alternative to buying it overseas.
I know a lot of you out their love T-Mobile and want an iPhone that works on the network really badly, and I send out my sympathy to you. Maybe one day Apple and T-Mobile USA will be one big happy family and finally over an iPhone. Until then, may I offer you a suggestion? Either get the iPhone, unlock it and use it on T-Mobiles edge network, or simply get an Android phone and experience the benefits of 4G speeds!
This is a guest post by Tristan Thomas, Executive Editor of Get Your Gadgets Going!