T-Mobile Removes iPhone Smartphones From “Zero-Down” Promotion

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Coming off of yesterdays high with T-Mobile’s best quarterly financial results in years is some news that will surely disappoint some future iPhone buyers. Beginning tomorrow, August 10th T-Mobile will remove the iPhone 5, iPhone 4S and from their $0 Down Summer Sale. Unfortunately, no reason is given for the move, and the leaked images don’t offer any reasoning for the price change. As it stands, the  iPhone 5 will return to its earlier price point of $145.99 down with 24 monthly payments of $21.

Of course T-Mobile tries to spin the news by emphasizing the smaller monthly payment with the regular up front cost, but it’s still disappointing to see the iPhone singled out from this promotion. While T-Mobile CEO John Legere won’t credit any one device with helping T-Mobile’s most recent quarterly numbers, 900,000 iPhone devices sold didn’t exactly hurt. It’s sad to see that future buyers might be brought into a store by the promise of a promotion only to discover the iPhone doesn’t qualify.

I hope the T-Mobile works to make sure customers know ahead of time that the iPhone is no longer eligible for this offer.
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  • TMoNoob

    That’s because the promo was supposed to be for smartphones so removing the iPhone makes perfect sense.

    • http://tmonews.com David

      Ummmm, what?

      • BlackLighted

        That’s what she said….

        • http://tmonews.com David

          Sardine can manufacturing? You must be dreaming, the iPhone has some of the best manufacturing for a smartphone, even the most die-hard of Android fans would be dismissive to ignore that.

        • BlackLighted

          David, I’m just kidding around with you, but seriously, the iPhone isn’t perfect for everybody.

          Seriously, it’s a great phone, for people that are into Apple stuff.

          I didn’t say it was made like a sardine can, but it does share some resemblance with it’s “rounded corners” and all.

        • cobrown39

          I smell an Apple lawsuit against the sardine can industry.

        • Paul

          Smells fishy to me.

    • BlackLighted

      I could never figure that out either, what part of the sardine can it’s made from makes it so smart??

      • Alex Zapata

        Good thing I only eat herring from a jar. Wait a minute…. that’s a cylinder…. it’s a Mac Pro!

    • Zacamandapio

      I think that was one of the funniest things I’ve read in a while.
      Prepare to be bombarded.
      :D

  • VG

    Why is T-Mobile constantly trying to dismiss the importance of the iPhone to the company’s recent success? I understand that T-Mobile has introduced several exciting changes to the way they do business, but Legere goes out of his way to discount the importance of Apple. Seems odd.

    • MacRat

      Because they don’t want to piss off their other phone vendors.

    • BlackLighted

      Because everybody is trying to make T-Mo’s 1.1M subscriber adds for the quarter all because of the “iPhone”, and ignoring that they sold 600,000 Galaxy S4′s among everything else during the same time period.
      Legere needs to prove that T-Mo does quite well on it’s own, whether the iPhone is there or not.
      Apple doesn’t make or break the company, it still succeeds because of it being the “Un-Carrier”, and having a plethora of all types of phones for all types of people.

      • Dakota

        Makes no sense. They’ve been desperate to get the iphone for years. Whether people are buying it or not, it went a long way to helping Tmobile brand reputation. Before, it was us Tmobile network so bad that Apple won’t even allow the iPhone on its network? Its made people give it a chance & Tmobile has been promoting the hell out of it. Why mess with a good thing, especially right before a new iPhone gets released

        • Jose Hernandez

          The reason why T-Mobile did not have the iPhone before now, is because Apple was demanding too much money for them to carry it. T-Mobile always said they were willing to have it but they would not break the bank to get it like Sprint did.

          It has helped, nobody can deny that. But the iPhone does not make or break T-Mobile, or any other carrier for that matter.

    • Justin Black

      There is an ongoing power struggle between OEM’s and carriers. Downplaying a single OEM’s importance is a very good idea from a carrier perspective. It also keeps the likes of Samsung, HTC, and Nokia happy. John is trying to differentiate T-Mobile based on business model, not devices.

  • JB

    Maybe everyone was coming in for iPhones and T-Mobile was like, “maybe we should drop it from this promotion so we can get some upfront profit” that seems the most likely scenario… That, or Apple was said stop. Who knows…. Lol

    • Justin Black

      That depends on how they recognize revenue. They likely record the full sale when you make the down payment.

  • Whiskers

    Absolutely a stupid move by T-Mobile !
    People will leave that want an iphone since other carriers are offering the iphone with 0 down .

    Yea T-Mobile has cheaper monthly plans but once you add up the doen payment , monthly EIP payments for 24 months your not saving that much a month than a AT&T plan.

    • Dakota

      Plus it’s just optics and impulse. You say you don’t have to put anything down, you walk out the door with an iphone without plunking downa penny, that makes people take a look at TTmobile. Plus with a new iPhone just months away you’d think theyd want to give customers a reason to buy the iphone 5 now. After all, it’s price will have to go down by Fall. Just stupid and negates this week’s good news. You should all tweet Legere

      • Jose Hernandez

        Why should we all tweet Legere? For the iphone fans, sure, I could see why they might want to tweet him and complain. For the rest of us that are not iphone fans, we don’t really mind.

        I would never by an iphone, so, I am not upset about this. Sales come and go. It would be nice for T-Mobile to let people know ahead of time when they are planning to stop a sale. 1-2 days notice does not due any good for most people.

        But a part of me still feels that Apple may have something to do with this. T-Mobile should be trying to sell as many iphones as they can, it is really weird for them to pull this phone of the sale.

    • JaswinderSinghJammu

      But it’s unlimited 30 mbps goodness oppose to 2 or 4 GB

      • Whiskers

        Does’nt matter, if you can only get spotty service at best because your tounge is’nt stuck directly on T-Mobiles tower for usable data so what’s the point.
        T-Mobile has faster data speeds yes , but only if your in their selected 4G/LTE areas .
        15 minutes outside any major city and your on Edge or GPRS .
        So to some it may be worth paying 10-20 more a month for better coverage while receiving that new iphone with their new contract.
        I just watched two employees leave T-Mobile for AT&T even after all the horror stories they been reading and they have no regrets and got another iphone for free.along with their better data coverage .

        • Spanky

          AT&T is ridiculously slow (the worst, in fact) when it comes to updating their Android phones, but their service is top-notch.

        • Whiskers

          Depends on YOUR area !
          In my area it’s real close to what i get with T-Mobile when i’m in a good spot that’s not switching back and forth between 4G and Edge.

        • JaswinderSinghJammu

          So even in your own words it really depends on the area. I live in San Jose, one off 7 first cities to get T mobile LTE and coverage in fantastic and I don’t travel much anymore. It works great. Why would I want ATT and get less for more. I am glad it’s working for you where you live.

        • Whiskers

          Correct , for you if your happy with your T-Mobile service then stay with them.
          For me i don’t get perfect service but i’m happy with what i get for the cost of the service.

        • Sectime

          Ok so the same points over and over about carrier coverage. Works for you or not. Tmo works for me. A pagePlus prepaid as backup/recreational activities and an Verizon LTE iPad on prepaid for very occasional road trips

    • BlackLighted

      AT&T nails you $20/mo for 300MB, T-Mo gives you 500MB included in the cost of the line.
      AT&T nails you for $50/mo for 5 GB, and you can’t tether it. T-Mo for the same price gives you 10.5GB and you can tether it.
      Or forget the tethering, $20/mo and T-Mo is Unlimited(I’ve gone over 25GB, it’s not throttled). AT&T doesn’t have an option for that.
      Where don’t you see a cost savings there??
      AT&T does an EIP too, but it’s $35-$37/mo for the phone.
      And you don’t have to do the EIP, just pay for the phone in full, and the T-Mo savings start day one.
      I can’t find that EDGE everywhere you go place either, my T-Mo phones have been lit 3G/4G since 2008.
      LTE for almost 2 months now.

      • Whiskers

        That all may be correct but the game changes if you get discounts on your monthly bill.
        I have an LTE phones (HTC ONE) and IPHONE , and it constantly switches from LTE/4G and Edge service 15 minutes outside Columbus,Ohio. Sometimes even standing right in the center of the city ,

        So LTE don’t mean squat if you have to weld yourself to a cell tower for constant LTE service.
        That was the deciding factors for my other employees who just left T-Mobile , for me i’m ok with the service as i’m not willing to pay what AT&T and Verizon wants per month for their service.

        • D Nice

          Whiskers that is not necessarily true about the discount changing the game. For example when I was with verizon I had a family plan (4 lines) with 2000 minutes, two of the phones had data at $30 a pop. I received a 20% corporate discount which made made my bill around $195 a month, which if wasn’t for the discount my bill would of been around $220-230 a month (whew) with the tax and fees. Now that iam TMO with nearly the same level of service I’m paying around $170 a month which includes unlimited talk, text and the EIP along with insurance on my devices. Once I pay off my EIP’s my bill will go down to around $130.00 a month. I’m no expert but! This is a DEAL! Yes TMUS may not have as much of an impeccable network as Verizon or the other carrier that is on the GSM network but! This company is making moves it will be interesting to see what transpires over the next few years.

        • Whiskers

          I see your point , but until you pay off your EIP your still paying a good chunk of money along with your monthly service.
          So your really not saving that much until that EIP is payed off. Then yes , you will see a huge savings.
          Most people who get the EIP service with that nice shinny new $650.00 smartphone don’t pay the phones off quickly since it’s 0 % financing.
          So if one was to take 24 months to pay off their EIP then they are not really saving that much each month when you compare the coverage between T-Mobile , AT&T and Verizon and if that person needs that more importantly than just fast data speeds.
          Everyone’s needs are different in cell service.

    • xmiro

      it’s that or Apple stops selling them iPhones. Apple decides the prices and if memory servers me right, approves any and all discounts its distributors offer to customers. No one is allowed to beat Apple store prices significantly

      • Whiskers

        They are not beating Apple prices , either way your paying the full amount.
        You either put No money down and pay $27.00/month X 24 or pay the $145.00 down and $21/month X 24 you will still be paying $649.00 for the Iphone 5 .
        $649.00 is the same full retail price at AT&T , so how is T-Mobile beating Apples store prices which is the same as other carriers retail price.

        • xmiro

          You don’t get it. It’s about the down payment cost for an iPhone 5, the flagship device, being $0.

        • Whiskers

          It shouldn’t matter , in the end your still paying full retail price of $649 for it.

        • Yoyo

          It does matter! People dont care for monthly. They want the iphone 5 for free.

    • Jeff grace

      That is not true. And for one with AT&T and verizon and sprint you keep paying for your iPhone or whatever phone even after 24mo . And AT&T even with the new next program no money down but we make you pay 3x cost for phone for the one you give back and the one you get in return tmobile does not so that . When you give your phone for trade they wipe what you own and you pay a down payment and get what phone you want not continue paying in previous and current . Do your research.

      • Whiskers

        That’s not completely true either.
        After 24 months you simply leave or sign a new contract and get a new phone. Then sell your old phone to cover your new phones down payment. No one is forcing you to be stupid and stay on your current plan beyond the original contract , once it expires you have choices.

  • Dakota

    They keep taking steps forward and then going back. They keep repeating how they’re the UN Carrier, yet every month or so, they make a customer unfriendly move reminiscent of every other carrier. Moves that raise people’s brows and remind them of why they hate cell phone companies. You can’t have it both ways. (If the iPhone is just another phone, why single it out. Why risk losing a customer. Sorry Legere, you’ve just pissed people off & again made themssuspicious of Tmobile)

    • AndroidProfit

      Apple is very protective of their products. There is very little chance this has anything to do with T Mobile at all.

      • Justin Black

        They are the Disney of technology.

    • oompa1369

      It has nothing to do with ATT Bitching, or a step backwards in uncarrier. Look at it this way. You were given 2 full weeks to get the iphone at $0 down. Just be grateful that you had that. Uncarrier 1 and 2 are game changers. I cant wait for uncarrier 3 to come out. If you cant afford to get an iphone dont get one. No other carrier gives you “NO CONTRACT” LOW MONTLY RATES, Ability to pay out devices over 24mo interest free (NOT EVEN METRO’s 3rd party finance which only gives you 3 months free interest- then charges interest the rest of the months)… T-Mobile is changing the way wireless industry does things. Its usually those who are paying way to much for their wireless bill who are stuck in contracts that are bitching about this. Get a clue.. Put money back in your pocket and switch to tmobile. Even if your in contract, you can break it.. What you would save over the rest of your contract by moving to tmobile would be more then if you stayed with our current company. Its just math people. If you cant figure it out.. go see a CPA.. they will tell you it makes financial sense.. some people are just scared to make the move. I did.. I have no problems.. Regardless of outsourcing.. Im saving money and thats all that matters.. Good service, great phones, just the way I want it..

  • Graham Blackadder

    Att shit a brick and bitched to apple again huh?

  • pramarama

    My guess is Apple doesn’t want their phones “perceived quality” taking a hit by having a $0 price tag, so they called T-Mo and said to knock it off.

    • Spanky

      That’d be my guess as well.

    • twicetheprice

      Apple is protective of the perceived quality of the brand. They just don’t want the iPhone’s to appear “cheap”.

  • kev2684

    probably because other carriers complained to apple that t-mobile is hurting their iPhone sales since they can’t match $0 down on the iPhone 5.

    • Justin Black

      I don’t think Apple has control over how T-Mobile finances customer purchases. I could be wrong.

      • oldmantiburon

        You are correct Apple does not have control over T-Mobile finances, But Apple does have control how there products are sold.

  • http://dualshockers.com Joel Taveras

    No matter how you look at it the phone is still $648, whether it’s $0 down or not. Being upset by this is just silly

    • AndroidProfit

      EXACTLY!

    • Justin Black

      It depends on a person’s situation. If I had my heart set on getting this tomorrow for some upcoming event and had to put the purchase off to save for the DP, I might be a bit upset.
      The thing that puzzles me about the T-Mobile promotions is that they end without warning.

      • Abe Froman

        Justin, if somehow you can make the purchase today, my understanding is you can still get 0 down. Seems like the reports having it going into effect tomorrow, 8/10.

        • Justin Black

          I wasn’t speaking of my personal situation, but thanks for offering that suggestion. Awesome user name though…the sausage king of Chicago.

      • TMOLOYAL

        I hate to go here, but I will. Your statement and the way it applies to so many people across America is one of our major issues. If you cannot afford a $149.00 down payment then maybe you should reconsider your financial situation and whether or not you should really be worried about the latest $700-$800 phone.

        I agree that advertisements need to be clear to customers so there is not confusion, but come on.

        • Justin Black

          Let me make it clear that I do not want an iPhone, $0 DP or not. Furthermore, I don’t have this situation. I’m merely imagining a scenario where someone might be disappointed by the discontinuation of this promotion. I’ve know people throughout my life that have chosen to live irresponsibly when it comes to finances. I was probably guilty of it in college. But I’m not going to paint broad strokes about the merit of Americans using credit. At least not in this forum.

  • JaswinderSinghJammu

    It’s the same either little upfront or no upfront cost. The end result is the same. It’s not they eliminated the down payment and monthly payments stayed the same.

  • BlackLighted

    Verizon and AT&T won’t be making their sales quota for Apple products anytime this year, T-Mobile already exceeded theirs.

  • AndroidProfit

    in all likelihood t Mobile has absolutely nothing to do with this. Apple is extremely protective of their products like it or not. This won’t stop the Apple haters though who obsess about an inanimate object! A product that they simply don’t have to buy nor will affect them in anyway. the Apple haters are like old people who yell at kids to get off the lawn.

    • Whiskers

      If the other big three can sell them with no money down , T-Mobile can as well.
      That would be unfair business practices if they could’nt.
      T-Mobile may be worried of it’s EIP loss if people start to bail and leave them hanging since they did’nt have to put any money down.
      I know what some here are going to say , They will just block the IMEI so you can’t use it somewhere else. Well i will just say , yes you can. There are always ways around that.

      • Jose Hernandez

        They only thing I can think for the other carriers selling them for no money down would be that they are subsidizing the phone and will get their money back and more from it.

      • xmiro

        only the 8GB iphone is no money down. The iPhone 5 last I checked had a down payment at Verizon, AT&T and Sprint. In the end Apple controls everything, carriers and distributors are required to comply as part of the agreement of being allowed to sell the products.

  • Justin Black

    T-mobile already gives Apple plenty of promotion. Go to their website and shop all phones. Now sort them by average customer rating. Notice anything? Despite other phones having higher scores, the Apple products are still on top. It is very misleading. Very UnUnCarrier I would say.

  • xmiro

    Apple forced them to do it, or it was due to fraud. Apple though, is notorious for controlling what their distributors price its products. I think the rule was maximum 5% discount from what Apple stores charge.

  • GinaDee

    This has nothing to do with Apple.

    It was a business decision by T-Mobile to lessen the average spend they dish out to win new customers and upgrade existing ones.

    Buried in T-Mobile’s quarterly report with above average net adds were huge revenue losses attributed to these zero down promotions buried with lower priced monthly fees.

    T-Mobile (like Sprint) offer unlimited data at a capped price so when you bundle in their unlimited voice/text options they have little ways to get more money out of their subs who are already price conscious as it is.

    So it’s get rid of the free iPhone up front, increase monthly fees or get rid of unlimited data. At a certain point to grow the way they want to and expand coverage something is going to have to give. By that time Legere will have sold the company.

    • Herb

      When did T-Mobile have a $0 down promotion in Q2, and how did it contribute to huge revenue losses? And since when does Jon Legere own the company? Please support your “buried” information with some evidence.

  • Stone Cold

    It was a Promotion now it’s over move on to the next one.

  • 0neTw0

    Oh Noooooo! What will I do now? Oh yeah Keep my Nexus 4 till the 5 comes out.

    • http://qr.net/MalcolmTuckerYouTube Malcolm Tucker

      The Motorola X is likely going on sale. T-Mobile is likely going to give a promotion to sales reps to tell you about it as well. It’s a part of the $500,000,000.00 ad budget that Google set aside, and has to spend.

      Advertising and promotion of “Free Motorola Phones” or “BIG Motorola Sale” sometimes require greasing of the palms at retail stores, and also planned increases of the pricing of competitor’s products, additional compensation to sales people, because Motorola phone are mid-range.