phandroid

While T-Mobile ranks itself among the big four US cellular carriers, they happen to sit squarely at the bottom of the list as they struggle to keep a competitive edge. Now with Verizon announcing the iPhone and Android getting better and better on every carrier, TMo is looking elsewhere to win over customers. The plan [...]

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NowVoyager

I find it incredible that the CEO makes the announcement in the WSJ T-Mobile Smartphones to Head Down Market - WSJ.com that he LOST customers in November because he didn't have high-end phones such as the iphone. Then, he says that the low-end customer is their least profitable customer and caps it all off by saying that they are going after that low-end customer aggressively!!! - Did anyone tell him about Metro, Cricket, Boost and other pre-paid carriers who already own that space??? This is insane. If you are LOSING customers because you don't have high-end phones, why make the focus of your business model anything but becoming more attractive to exiting and potential customers to stop the bleeding??? I guess they are number FOUR for a reason...smh

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danalingga

I think it is a good move that T-Mobile try be a low price carriers. It may a good differentiate to live up the business.

NowVoyager

"Liven up the business?" Hmm... The CEO admits in the article that the low-end customer is their least profitable customer. So, to aggressively take the company in that direction is what...(fill in the blank)? I think that a good number of people signed on with Tmo because of its Family Plans and the ability to get great phones with that plan.

A quick read through any Android forum let's you know that customers are not clamoring to get their hands on the latest low-end, dummied-down Smartphone. According to Andy Rubin, the founder of Android - the consumer is becoming more savvy and understands the value of being on the cutting edge with Android Exclusive Q&A: Google's Andy Rubin Talks Android | News & Opinion | PCMag.com.

You can get a truckload of behind-the-curve, low-end equipment at the pre-paid companies. Most Tmobile customers didn't sign on for that. The article suggests that this is why he's losing customers. Plus, why would anyone lock themselves into a 2-year contract with Tmo for what he says will be a subpar phone when you can do so with NO contract with a pre-paid carrier? He's not creating a new market. He's entering a space where the pre-paid carriers have already staked their claim.

Even Metro has suggested that they are entering the high-end game with the Samsung R910: Android 2.2 (with possible Android 2.3 upgrade), 1GHz Hummingbird processor, 5MP camera, with TouchWiz UI. Images of MetroPCS’ first LTE, Android smartphone surface; Samsung SCH-R910 | BGR | Boy Genius Report
And they're bringing that puppy in at $399 off contract! Typical high-end/off contract Smartphones range in the $500 - $700 price point.

Jayziac

I welcome the move. I'm one of the target audiences. Right now I'm with t-mobile prepaid, using Acer Liquid phone I imported. For T-Mobile prepaid, they don't have many android offerings (post-paid, they have quite a few top-end Android I think, just not marketed like the others).

I believe Tmobile prepaid is also where all the future growth is. So instead of competing with the other top 3 carriers, which they're already behind, they're going after the prepaid market, armed with Android. metroPCS, Cricket, and other prepaid only carriers aren't available in a lot of markets like mine right now, and their Android devices are still expensive.

NowVoyager

The "serving a market that is unserved" (location wise) may have a small audience as you have proven and I'm glad that you're able to get service. But let's face it, it isn't a huge market where there is no competition. The CEO is saying that he hopes to drive down the price of Android phones. It's a crock. He's not talking about top-of-the-line Smartphones, he's talking low-end...they are already only about $30 a pop as in their LG Optimus T Android phone (which is actually a wonderful entry level Android phone). But again, he says that low-enders are his least profitable customer base. I just wonder about the viability of his plan seeing that he's losing his profitable customers. Knowing that he has no plan to be competitive with the Big 3 in terms of acquiring the selection of Smartphones that people really want (in preference to low-end phones) he's likely to lose even more profitable customers as their disappointment mounts and their contracts come to an end.

Jayziac

They may be able to make up things with volume sales, if lower price, more people sign up, less profit per user, but maybe overall a gain in revenue. Time will tell.