Lines at T-Mobile stores show Apple’s clout


T-Mobile Store

The iPhone 5 is six months old. That isn’t stopping happy T-Mobile subscribers from lining up to get it as part of the T-Mobile’s bold new pricing and marketing plans.

People were lining up outside of T-Mobile stores this morning across the country. The hype is what one would expect of the launch of a new device, not an aged device adding a new carrier. It demonstrates the popularity of Apple, but is this good news going to translate as well for T-Mobile?

Perhaps the real test will come when the carrier pushes forward head to head with the other carriers with the Samsung Galaxy S4, set to launch May 1. If their marketing techniques are aggressive pricing plans resonate, that will tell whether or not it can really move the needle for the fourth largest service provider. The appeal that they hope to resonate centers around no contracts and paid-out purchase plans. Rather than sell the iPhone 5 16gb for $579 like other carriers, they’re pricing it at $99 down and $20 a month. It’s the same overall cost but by allowing their customers to make payments without making them sign long-term service agreements, they hope to get people to switch.

It’s a risky move, but if the lines are any indication, their message is at least reaching the consumers. Early indications are that it’s working at least to some extent; last week they announced 579k new users in Q1.

1 comment
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