T-Mobile's lease program entices subscribers to upgrade. AT&T and Verizon don't yet offer leases for the devices.
Barron's Investor's Soapbox PM
Pacific Crest Securities
We believe T-Mobile US is very confident it will meet or exceed its2015 adjusted earnings before interest, taxes, depreciation and amortization guidance range of $6.8 billion-$7.2 billion, given its aggressive iPhone-leasing promotion.
We believe this will cause trouble for AT&T and Verizon Communications as porting ratios already favor T-Mobile, T-Mobile is growing subscribers and margins, and that will likely prompt leasing offers at AT&T and Verizon. We believe industry upgrade rates will steadily increase as subscribers migrate to carriers providing quicker and more frequent access to new devices. And the dirty little secret is...leasing will likely improve margins.