Apple and T-Mobile Join Up: Which Carrier Will Be Next?

Updated

Apple (NASDAQ: AAPL) and T-Mobile recently announced an agreement that will likely allow T-Mobile to begin selling Apple's iPhone. In this video, Motley Fool senior technology analyst Eric Bleeker takes a look at what this deal's impact on Apple will be. With approximately 34 million T-Mobile subscribers, plus an additional 9 million upon closing of T-Mobile's pending acquisition of MetroPCS Communications (NYSE: PCS)), Eric expects that this deal will result in the sale of approximately 1 million additional iPhones per quarter, based on the performance of Sprint (NYSE: S). This translates into an increase of around 3% in the quarterly sales of iPhones, which Eric characterizes as good news, but certainly not a game changer.

The big question on Apple investors' minds is which carrier will be next to sell the iPhone. Many investors expect an agreement with China Mobile (NYSE: CHL) in the next couple of months. Like the T-Mobile deal, an agreement with China Mobile would certainly boost iPhone sales. However, Eric urges investors to keep the scale of the potential upside from these deals in perspective, given the iPhone's large existing base.


There's no doubt that Apple is at the center of technology's largest revolution ever, and that longtime shareholders have been handsomely rewarded with over 1,000% gains. However, there is a debate raging as to whether Apple remains a buy. The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on both reasons to buy, and reasons to sell, Apple, and what opportunities are left for the company (and more importantly, your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.

The article Apple and T-Mobile Join Up: Which Carrier Will Be Next? originally appeared on Fool.com.

Eric Bleeker has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple and China Mobile. Motley Fool newsletter services recommend Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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