During a presentation to investors in New York on Thursday, T-Mobile CEO Philipp Humm put an explicit percentage on the so-called iPhone effect: how many T-Mobile subscribers leave every month for AT&T just because of Apple’s smartphone.
According to Humm, the churn rate — or number of contract customers lost per month — is sitting at 2 percent right now. Of that 2% leaving the network, a full ten percent are because customers want the iPhone.
To counter, Humm says that T-Mobile will launch a line of sub-$100 Android smartphones with subscription plans starting at just $10 a month. That doesn’t exactly sound like the plan of a company that thinks it’s going to get the iPhone any time soon, does it?
Worse, it reeks of desperation: you can’t retain customers you’re losing for lack of the best handset on Earth by offering them a cheap deal on some of the crummiest.
John Brownlee is a writer for Fast Company, and a contributing writer here at CoM. He has also written for Wired, Playboy, Boing Boing, Popular Mechanics, VentureBeat, and Gizmodo. He lives in Boston with his wife and two parakeets. You can follow him here on Twitter.
16 responses to “T-Mobile: 10% Of Departing Customers Leave For The iPhone”
I hope Mr. Humm is not believing that the 10% number is accurate otherwise Tmobile is doom.