T-Mobile Blames 700,000 Lost Subscribers on iPhone 4S
T-Mobile is hemorrhaging subscribers. And the carrier says Apple is chiefly to blame.
More specifically, the white-hot launch of the iPhone 4S last October has apparently contributed greatly to the massive number of subscribers T-Mobile say it has lost since that time.
If you've been tuned out to the earnings reports on Wall Street this week, T-Mobile failed to wow with its latest quarterly earnings report. In fact, the carrier's loss of nearly three-quarters of a million subscribers (700,000) is being directly attributed to the popularity of the iPhone 4S.
Consumers simply flocked to the new iPhone from all directions - as evidenced by Apple's most recent quarterly earnings report. And it looks like T-Mobile - the only major carrier in the U.S. to not offer the iPhone - suffered dearly as a consequence.
"Sequentially, the decline in branded net contract customers was driven primarily by higher branded contract deactivations as a result of the launch of the iPhone 4S by three nationwide competitors in mid-October," T-Mobile bemoaned in its report. "Not carrying the iPhone led to a significant increase in contract deactivations in the fourth quarter of 2011," added T-Mobile USA CEO Phillipp Humm. "In 2012 and 2013, T-Mobile USA will invest to get the business back to growth, including an incremental $1.4 billion investment in its network modernization initiative, which will total a $4 billion investment over time."
But without the iPhone, it remains to be seen just how much "growth" the carrier can really achieve when its subscribers leave in droves to follow the newest Apple smartphone to AT&T, Sprint, and Verizon.
Source: New York Times