Please ensure Javascript is enabled for purposes of website accessibility

How T-Mobile Could Push Apple to New Highs

By Tim Beyers - Apr 1, 2013 at 8:30PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A Fool bets real money in a three-year tussle with Mr. Market.

Each week, I endeavor to report the results of the Big Idea Portfolio, a collection of five tech stocks that I believe will crush the market over a three-year period. I've done it before; my last tussle with Mr. Market ended with me beating the index's average return by 13.35%.

Real money was on the line then as it is now, which means any one of the five stocks you see below could cause me a lot of public embarrassment. This time Apple (AAPL -5.64%) took a hit, and that's despite some really good news from T-Mobile.

At its "Un-carrier" event, the Deutsche Telekom (DTEGY -1.72%) unit revealed a plan that ends subsidies but still allows shoppers to purchase the latest smartphones without much upfront investment.

Specifically, T-Mobile says it will ask customers to kick in an initial deposit on premium handsets and pay the balance over 24 months. Official support for Apple's iPhone -- including the iPhone 5 -- arrives on April 12 while LTE service is live now in seven markets. T-Mobile plans to offer LTE coverage for as many as 200 million U.S. customers by the end of this year.

Color me thrilled. T-Mobile's LTE moves should push incumbent carriers to improve both speed and access on their own networks. Apple, meanwhile, gets another carrier pushing its iGear at the same premium prices the company has enjoyed for years.

What's the Big Idea this week?
Among my five tech stocks, only Riverbed Technology and rallied. Neither move was enough to keep me from losing even more ground to Mr. Market -- another 178 basis points, to be specific, as every major index rallied.
This time, the S&P 500 led the gainers with a 0.79% improvement, followed the Nasdaq's 0.69% gain, the Russell 2000's 0.56% jump, and the Dow's 0.46% bump, according to data supplied by The Wall Street Journal. Here's a closer look at where I stood through Thursday's close:


Starting Price*

Recent Price

Total Return









Rackspace Hosting




Riverbed Technology












S&P 500 SPDR








Source: Yahoo! Finance. *Tracking began at market close on Jan. 6, 2012. **Adjusted for dividends and other returns of capital.

Notable newsmakers
Among the other tech stocks making news last week:

  • Facebook (FB -5.12%) said in a blog post that it plans a slow rollout of ads placed directly in News Feeds for those using the desktop app. Mobile users have already been exposed in in-stream ads, which tend to mirror Twitter's "sponsored tweets." The difference here is that the social network plans to use browsing data to help marketers improve their pitches.
  • IDC says tablets are on pace to outsell desktop PCs this year and all PC formats -- including laptops -- by next year. Emerging markets are leading growth, which could be trouble for premium priced Apple products. Dell's mobility business could also take a hit.

What's caught your eye in the tech world? Do you believe Apple will rebound ahead of earnings, or are we in for more losses? Let us know what you think in the comments box below.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Apple Inc. Stock Quote
Apple Inc.
$140.82 (-5.64%) $-8.42
BlackBerry Stock Quote
$5.88 (-2.16%) $0.13
Meta Platforms, Inc. Stock Quote
Meta Platforms, Inc.
$192.24 (-5.12%) $-10.38
Alphabet Inc. Stock Quote
Alphabet Inc.
$2,237.99 (-3.93%) $-91.47
Dell Technologies Inc. Stock Quote
Dell Technologies Inc.
Rackspace Hosting, Inc. Stock Quote
Rackspace Hosting, Inc.
RAX, inc. Stock Quote, inc.
$157.33 (-3.91%) $-6.40
Riverbed Technology, Inc. Stock Quote
Riverbed Technology, Inc.
Deutsche Telekom AG Stock Quote
Deutsche Telekom AG
$18.81 (-1.72%) $0.33

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/19/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.