NEWS ANALYSIS
Brand Impact
An exclusivity deal over the Apple iPhone helped T-Mobile grow its share of the contract market in Germany. But how closely are these gains tied to that deal? And will T-Mobile’s success be affected when and if the iPhone becomes non-exclusive?
D
32 32 32 32 31 31 30 31 30 30 30 30 30
T-Mobile
12 w/e 25 Jan 09
12 w/e 22 Feb 09
12 w/e 22 Mar 09
12 w/e 19 Apr 09
12 w/e 17 May 09
12 w/e 14 Jun 09
12 w/e 12 Jul 09
12 w/e 9 Aug 09
12 w/e 6 Sep 09
12 w/e 4 Oct 09
Total Market
12 w/e 1 Nov 09
12 w/e 29 Nov 09
12 w/e 27 Dec 09
30 30 30 30 30 30
79 53 65 67 30 31
31
Spend on Handset (�)
32 32 31 31 31 31
Contract ARPU (�)
ata released exclusively to MCI by market research firm Kantar details the impact on German carrier T-Mobile’s domestic
operation of its exclusive distribution deal for Apple’s iPhone. T-Mobile grew its share of the contract mobile market from 26.2 per cent to 30.1 per cent over the course of 2009 and more than 40 per cent of the carrier’s contract subscriber additions during the second half of 2009 bought
the iPhone. Nokia, Motorola, Vodafone and O2 were among the firms losing out in Germany as a result of the popularity of the Apple handset. The launch of the 3Gs iteration of the phone
in May last year gave it a significant boost within the T-Mobile portfolio, despite a sales dip in the third quarter. The handset proved a huge draw for customers from rival networks, with 44.4 per cent of users churning to T-Mobile contract tariffs doing
so for the iPhone. Nokia, which is used to market share in that kind of neighbourhood, was a distant second with 17.9 per cent. Kantar’s ComTech consumer tracking panel con-
ducts more than two million consumer interviews across 11 key mobile markets each year, gaining insight into mobile phone behaviour, including purchasing of phones, mobile phone bills/airtime, source of purchase, phone usage and handset features. Paul Moore, director of ComTech, said that the iPhone has given T-Mobile a significant boost in the younger, higher-spending demographic where, historically, it has been found wanting. This has bal- anced T-Mobile’s losses in the prepaid market, which is growing in Germany, he added. »
mike.hibberd@informa.com
Purchasing — Spend on contract handset (e)
Average spend on contract handsets are increasing on T-Mobile, with spend consistency higher the market average
iPhone contract sales — T-Mobile
Although iPhone customers spend less on acquiring their handset
(vs. total market), they have a significantly higher ARPU than other customers (total market and T-Mobile)
Total Market
Source: ComTech DE Purchasing data to w/e 29th December 2009
Total T-Mobile
Apple iPhone
Total Market
Total Mobile
Apple iPhone
Source: ComTech DE Purchasing data to w/e 29th December 2009
iPhone contract sales volumes — T-Mobile
Despite a sales volume dip in the third quarter of 2009, the launch of the iPhone 3G’s has significantly impacted Apple’s share of T-Mobile sales
300,000
iPhone 3GS launched
250,000
82
200,000
71
150,000 100,000
64 62
50,000
64 70 63 61
0
12 w/e 25 Jan 09
12 w/e 22 Feb 09
12 w/e 22 Mar 09
12 w/e 19 Apr 09
12 w/e 17 May 09
12 w/e 14 Jun 09
12 w/e 12 Jul 09
12 w/e 9 Aug 09
12 w/e 6 Sep 09
12 w/e 4 Oct 09
12 w/e 1 Nov 09
12 w/e 29 Nov 09
12 w/e 27 Dec 09
Source: ComTech DE Purchasing data to w/e 29th December 2009
12 w/e 25 Jan 09
12 w/e 22 Feb 09
12 w/e 22 Mar 09
12 w/e 19 Apr 09
12 w/e 17 May 09
62 59
12 w/e 14 Jun 09
54
12 w/e 12 Jul 09
53
12 w/e 9 Aug 09
12 w/e 6 Sep 09
12 w/e 4 Oct 09
12 w/e 1 Nov 09
12 w/e 29 Nov 09
12 w/e 27 Dec 09
Source: ComTech DE Purchasing data to w/e 29th December 2009
64
T-Mobile Total Market
76 76 71 70 82 80 76 74 85
Purchasing — Spend on contract handset (e)
Average spend on contract handsets are increasing on T-Mobile, with spend consistency higher the market average
90 86 85 91
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