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T-Mobile iPhone and end of subsidies to arrive in four months, says CEO

News by Andrew Kameka on Wednesday January 09, 2013.

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T-Mobile previously confirmed one of tech's oldest rumors that it will begin selling Apple products in 2013, and CEO John Legere has stated that it will offer the Apple iPhone later this spring. Legere told Reuters that both the iPhone and the end of offering subsidies to smartphone buyers will be available "in 3 to 4 months as opposed to 6 to 9 months."

When T-Mobile first announced that it would carry Apple products, there were questions if it would be existing models, like the iPhone 5 and iPad Mini early in the year, or the next iterations of Apple's products that would be released in the fall. Legere's comments suggest that it will be the former rather than the later, unless Apple makes the unlikely decision to change its product refresh cycle.

T-Mobile is the last of the four major carriers to offer the iPhone, but it will be the first to do it without subsidies. T-Mobile is in the process of phasing out subsidies, which allow customers to pay a portion of a device?s costs rather the full retail price. When the iPhone goes on sale this spring, customers will have to pay up front costs that are likely to be more than three times as much as the $199 typically paid under the subsidy model. The strategy is risky, but Legere says that he believes customers seeking freedom from two-year agreements will be attracted to the lower monthly costs.

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Andrew Kameka
Andrew is based in Miami, Florida.

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