T-Mobile Rides Cheap Apple iPhones to Big Subscriber Gains
Nov 7th 2013 5:49PM
Updated Nov 7th 2013 5:50PM
Shares of resurgent telecom player T-Mobile have been on a tear lately, having appreciated around 60% over the last six months alone and easily besting telecom rivals like AT&T and Verizon.
Not bad, right?
After languishing for some time in the wake of the Justice Department's vetoing of majority-owner Deustche Telekom's sale of T-Mobile to AT&T in 2011, T-Mobile has once again attracted the interest of investors through a number of bold moves aimed at reinvigorating subscriber growth.
In that vein, T-Mobile put its money where its mouth is this week by posting an impressive beat in its third-quarter earnings announcement. For the quarter, it added more than 1 million new subscribers, although a portion of those new subs came from the recently acquired Metro PCS.
T-Mobile likely owes this strong subscriber growth in no small part to Apple's new iPhones. T-Mobile prices iPhones more aggressively than many of its U.S. competitors, offering the 5s for $99 with a contract and 5c for $0 with a contract, each meaningfully lower than T-Mobile's rivals.
In the video below, tech and telecom analyst Andrew Tonner looks at T-Mobile's recent successes and Apple's contribution to these wins.
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The article T-Mobile Rides Cheap Apple iPhones to Big Subscriber Gains originally appeared on Fool.com.Fool contributor Andrew Tonner owns shares of Apple. Follow Andrew and all his writing on Twitter at @AndrewTonner. The Motley Fool recommends and owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.