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Wednesday Apple Rumors: T-Mobile Says iPhone Is Too Costly

Carriers spend a fortune to subsidize iPhone purchases


daily apple rumors AAPLHere are your Apple rumors and AAPL news items for today:

Not Worth It: T-Mobile says it will not sell Apple‘s (NASDAQ:AAPL) iPhone any time soon, Forbes notes. A senior executive at the fourth-ranked U.S. wireless carrier, owned by Deutsche Telekom (PINK:DTEGY), said the cost of a deal with Apple to carry the iPhone is simply too high. Last year, Sprint (NYSE:S) agreed to a four-year deal valued at $15.5 billion to carry it. The iPhone is heavily subsidized by the carriers that retail it. Sprint indicated that it wouldn’t see a profit on iPhone sales until 2015, but it expected to see higher customer retention and average revenue per customer with the deal.

Construction of Apple’s New HQ Delayed
Construction of Apple’s New HQ Delayed

Shortage Abates: Apple’s supply chain is close to producing enough iPhone 5s to meet consumer demand, Apple Insider notes. Piper Jaffray (NYSE:PJC) analyst Gene Munster checked the inventories of iPhone 5s at various retail outlets. He found that the availability at AT&T (NYSE:T) and Verizon (NYSE:VZ) stores had increased dramatically and that most Apple Stores now had ample supplies. Munster predicted that sufficient inventories would exist for holiday shopping demand. Shipping times at Apple’s online stores have dropped to two weeks, signaling rising supplies. Apple’s Asian manufacturing partners had previously reported difficulties producing the ultra-slim phone, leading to supply shortages.

Federal Switch: Another U.S. government agency is abandoning Research In Motion‘s (NASDAQ:RIMM) BlackBerry smartphones, USA Today notes. The National Transportation Safety Board said it would migrate its 400 BlackBerry users to the iPhone 5 after experiencing a series of communication failures with the RIM devices. BlackBerrys were once prized by business and government leaders for their messaging abilities and secure network communications. However, rapid advances by iOS devices and smartphones running Google‘s (NASDAQ:GOOG) Android operating system have led many federal agencies, including the Defense Department, to end their exclusive reliance on BlackBerrys.

For more about the company, check out our previous Apple Rumors stories.

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