T-Mobile iPhone offer will rely on fast returns

June 23 will be the first day that consumers can sign up for a free iPhone 5S loaner phone from T-Mobile US. The “un-carrier” will deliver Apple’s latest to anyone willing to put down a $700 credit card deposit. Seven days later it will be the customer’s responsibility to return the phone to a T-Mobile US store, unless of course they want to sign up for service and buy the phone.
A logistics nightmare or an opportunity? That’s a question that has surely been up for discussion this week at Ingram Micro Mobility, which calls itself the world’s largest technology distributor. Two years ago Ingram Micro bought mobile device logistics specialist BrightPoint and launched Ingram Micro Mobility. T-Mobile US is a client.
“Delivering the device to the customer through forward logistics programs is the visible portion of the program, but ensuring speedy return and refurbishment of devices coming back out of the program is possibly even more vital to the program’s long-term viability,” said Ingram’s Sean Mulroy, director of product management.
Mulroy told RCR Wireless News that T-Mobile US’ supply chain will need to be carefully managed to ensure that the carrier has enough devices to meet demand without taking delivery of surplus phones it will not need. One challenge will be predicting the return rate, as returned devices can be refurbished and sent to other trial customers. Ingram already processes more than 40,000 returned devices every day.
Of course T-Mobile US’ marketing team will be working to encourage trial users not to return their free iPhones. The carrier is hoping that users will instead dump their current carriers and switch to T-Mobile US, or upgrade to the iPhone if they are already T-Mobile US customers.
“Test programs like this … provide a unique showcase for an operator to highlight their network and its capabilities – all with an eye toward capturing mobile users who are looking at other options,” said Mulroy.
T-Mobile US CEO John Legere put it much more bluntly, telling an audience at the company’s Wednesday press conference that billions of advertising dollars spent by his competitors have created a “cacophony of the biggest bullshit in history” and have led mobile users to choose networks that are slower than T-Mobile US’. Getting customers to try T-Mobile US’ network is Legere’s challenge, and while he has made impressive progress to date, the free iPhone offer could take it to a whole new level.
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