T-Mobile USA Opens Pre-Orders For iPhone 5 Starting At $99.99, Shipping April 12
T-Mobile USA has now started online pre-orders for the iPhone 5 — the first time that the carrier will be offering the device. Prices start at $99.99 for the 16GB models if you opt for a subsequent monthly payment plan …
Context & Ripple Effects
T-Mobile had already set an April 12 iPhone 5 launch and a $99 upfront price in its March launch plan. The pre-order opening turns that plan into an immediate sales channel as T-Mobile seeks to add devices while moving away from conventional handset subsidies.
Apple’s unlocked iPhone 5 sales in the U.S. had established a full-price alternative; T-Mobile’s offer instead lowers the initial payment and shifts the remainder into monthly installments. That distinction matters because iPhones bring carriers significant fee revenue but can also demand higher subsidies than many Android handsets.
First-order effects
- T-Mobile gains its first direct iPhone 5 offering, giving prospective and existing customers a lower-upfront-cost route to the device ahead of April 12 shipping.
- Buyers choosing the 16GB model pay $99.99 upfront and take on a subsequent monthly payment plan rather than paying the unlocked-device price at purchase.
Second-order effects
- T-Mobile’s installment structure tests whether it can use iPhone demand to support its stated plan to eliminate cellphone subsidies, rather than absorb the full handset cost at the point of sale.
- The offer gives customers a clearer price comparison between T-Mobile’s financed iPhone and Apple’s unlocked handset, making upfront cost and monthly obligation competing sales levers.
Third-order effects
- If carrier installment plans gain traction, handset pricing may become less dependent on large upfront subsidies and more dependent on separating device repayment from wireless service.
- Apple’s expansion to another U.S. carrier increases the iPhone’s reach while making carriers’ economics—recurring fee revenue versus handset financing exposure—a more central competitive constraint.
The trend: U.S. carriers are using installment-style iPhone pricing to broaden device access while reducing reliance on traditional handset subsidies.