Apple Inc. (AAPL) Just Dashed T MOBILE US INC (TMUS)’s Hopes

Instead, the no-contract pricing for the iPhone 5C is $549, making traditional carrier subsidies much more desirable. T-Mobile will undoubtedly lure in some new customers nonetheless. However, the higher monthly payments associated with a $549 phone (an extra $8.33 per month compared with a $349 phone) will make for a much smaller pricing gap with AT&T Inc. (NYSE:T) and Verizon Communications Inc. (NYSE:VZ).

Uphill battle
Getting access to the iPhone has been a big tailwind for T-Mobile this year. A cheaper iPhone would have been an even bigger catalyst for T-Mobile, allowing it to further distance itself from industry leaders Verizon Communications Inc. (NYSE:VZ) and AT&T Inc. (NYSE:T) in terms of pricing. But Apple Inc. (NASDAQ:AAPL) rained on T-Mobile’s parade by setting the iPhone 5C price high, at $549. Now, T-Mobile will have to continue slogging along to regain market share in the ultra-competitive wireless business.

The article Apple Just Broke T-Mobile’s Heart originally appeared on Fool.com.

Fool contributor Adam Levine-Weinberg owns shares of Apple and is long January 2015 $390 calls on Apple. The Motley Fool recommends and owns shares of Apple. 

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