Slack In Mobile Market May Affect T-Mobile's Third Quarter

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T-Mobile has been on a pattern of positive growth for some time, but analysts with Deutsche Bank say that the growth could be stifled, even if only for this quarter, by an overall flaccid mobile market. There are a number of preliminary signs that showed the third quarter of the year to potentially be a slow one, visible well before anybody releases their Q3 reports. If the market is as slow for the time being as the market indicates, than T-Mobile's momentum-based growth pattern may be on hold, though danger of a full and permanent stop is not on the table at this point, likely meaning that Deutsche Bank analysts see the risk thereof as negligible.

Two of the biggest signs of a slow third quarter are tied to the release of Apple's iPhone 8, a cyclical refresh of the iPhone 7. Though the newest iPhone sports many advantages over its predecessor, it seems to have failed to meet Sprint's pre-order expectations; the carrier laid a special trade-in deal on the table for the new phone. Surprisingly, nobody has gotten on board and presented a similar deal. Samsung's Galaxy S8 and Galaxy S8 Plus had lit the market up closer to the beginning of the year, but were starting to fizzle by the time the Galaxy Note 8 hit the market near the end of the third quarter. The Essential PH-1 and LG V30 failed to shake up the market in any significant way.

With no other popular flagships stepping up and both Apple and Samsung failing to invigorate the quarter, net adds and churn promise to be low. It is worth noting that this slump may not last. Google's Pixel 2 and Pixel 2 XL are poised for a strong launch, the Galaxy Note 8 is likely to hit its sales stride during this quarter, and the iPhone X will be hitting the market, aping the Essential PH-1 in design to put a new spin on the tried and true iPhone formula, which could possible help it to compete on level against others in the high-end space during the final stretch of the 2018 fiscal year. Naturally, such an upset and subsequent upswing would give T-Mobile a chance to get its momentum back, so long as it played its cards right with the new releases.

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