T-Mobile sure has been making headlines in the last few months and, while for the most part, said headlines have been pretty positive stories – its merger with MetroPCS; the introduction of the iPhone to its customers; ditching contracts and allowing customers to bring any device they want to the table – the latest story is not so good.
According to a press release issued by the company this morning, T-Mobile revenue in the first quarter of the year dropped about 7 percent when compared to its earnings at the same time last year. This year the total revenue earned was $4.68 billion, while last year it was $5.03 billion.
But, despite the significant drop in Q1, all is not lost; the company reported that it has sold a whopping 500,000 iPhone 5 handsets since first beginning to offer them on April 12. And, since T-Mobile has opted to do away with contracts, these are all devices that have to be purchased for the full retail price rather than the discounted rate that typically comes with a set commitment. To boot, since giving customers the opportunity to use any device they desire, the carrier also adding an average of 100,000 previously owned iPhones each month.
Not to mention, the completion of the aforementioned merger may also help the mobile carrier, which is the fourth most popular in the United States, bounce back and begin to see rising profits again. By joining forces with MetroPCS, the customer base jumped from 34 million people to 43 million.
As word of T-Mobile’s uber flexibility continues to spread, we’re curious to see if it will eventually help the company gain some ground against its U.S. competitors.