Latest news with #Sievert
Miami Herald
17-05-2025
- Business
- Miami Herald
T-Mobile makes bold move to reverse startling customer behavior
T-Mobile (TMUS) , one of the largest phone carriers in the U.S., recently welcomed a record number of new customers during the first few months of the year. However, it appears to have suffered a significant consequence of recent price increases. While T-Mobile revealed in its first-quarter earnings report for 2025 that it added 495,000 new postpaid phone customers during the quarter, that number is 6% lower than the amount it welcomed during the same time period last year. Don't miss the move: Subscribe to TheStreet's free daily newsletter Also, T-Mobile's postpaid phone churn, the number of customers who cut their phone service, increased by 5 basis points year-over-year. Related: T-Mobile pulls the plug on generous offer, angering customers This trend follows T-Mobile's decision to increase the price for some of its older phone plans by $5 last month. The phone carrier also later hiked its Regulatory Programs & Telco Recovery Fee from $3.49 to $3.99 for voice lines and $1.40 to $1.60 for data-only lines, further angering customers. During an earnings call last month, T-Mobile CEO Mike Sievert said that the recent spike in churn is mainly due to consumers becoming more anxious about the economy. "So overall, you saw across the industry churn was just on the margin a little elevated, and I think there's a number of dynamics there," said Sievert during the call. "That probably has more to do with kind of macro questions than with competition. You know, I think there's a certain element out there where people are in a time of uncertainty about the future, grabbing what they can afford now. And so, you're seeing kind of some amount of probably move forward of upgrades and switching." Image source:Amid this startling change in behavior, T-Mobile has decided to unveil a generous offer to lure back customers who fled to its competitors. The phone carrier has rolled out another iPhone deal that offers new customers a free brand-new iPhone 16 Pro with no trade-in required. In addition, it will also cover up to $800 to help new customers pay off their current phones tied to other phone carriers, regardless of whether the device is locked. Related: T-Mobile CEO has a harsh warning for customers The offer will be available for a limited time to new customers who join T-Mobile's Experience Beyond plan, which offers a five-year price lock guarantee. "At a time when everyone's looking to save and fed up with confusing switcher offers and lengthy-device contracts from the carriers, T-Mobile is making it easier than ever to switch," said Vinayak Hegde, T-Mobile consumer chief marketing officer, in a press release. Over the past few months, T-Mobile has been ramping up its deals after customers reacted negatively to recent price increases for older phone plans, which first started last year. In March, the phone carrier launched two limited-time deals through its T-Life app, offering customers with select accounts free voice lines. It also later introduced a buy one, get one iPhone offer, where customers can buy a new iPhone 15 or 16 device and receive another one for $730 off when they activate a new phone line on a qualifying plan (new customers need to activate two new phone lines). More Retail: Costco quietly plans to offer a convenient service for customersT-Mobile pulls the plug on generous offer, angering customersKellogg sounds alarm on unexpected shift in customer behavior The latest iPhone offer from T-Mobile also comes after the company recently delivered some bad news to customers. Sievert warned during T-Mobile's earnings call last month that the company may have to raise prices for its phones as a result of President Donald Trump's tariff policy (tariffs are taxes companies pay to import goods from overseas). He acknowledged that increasing prices for phones can result in T-Mobile seeing "a slowdown in upgrade rates." "We certainly understand the goals of the (Trump) administration," said Sievert. "It's not clear how much this (tariff policy) is going to affect the handset market. I think to the extent that it does land, and if it's a material thing, ultimately, I think we're going to see that the customer is going to wind up having to bear that cost. Taking on something big on the tariff front is just not something our business model is interested in trying to do or able to try to do." Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
29-04-2025
- Business
- Yahoo
T-Mobile CEO has a harsh warning for customers
T-Mobile () is facing record-high consumer demand despite recently hiking its prices. This move has frustrated customers to the point where some have even threatened to cut ties with the company. In T-Mobile's first-quarter earnings report for 2025, the company revealed that it added 1.3 million postpaid customers, which is the best result it has ever achieved during any first quarter of a year. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰💵 T-Mobile specifically added 495,000 new postpaid phone customers and 424,000 new high-speed internet customers, which contributed to the company generating a net income of $3 billion, 24% higher than what it earned during the same quarter in 2024.'A record number of customers chose the Uncarrier in Q1 — we grew postpaid gross additions year-over-year across the board and our High Speed Internet business led the industry in net customer additions for the 13th straight quarter,' said T-Mobile CEO Mike Sievert in the report. This increased consumer momentum comes after the phone carrier implemented a $5 price hike for some of its older phone plans earlier this month. A few weeks later, T-Mobile also increased its Regulatory Programs & Telco Recovery Fee from $3.49 to $3.99 for voice lines and from $1.40 to $1.60 for data-only lines, further frustrating customers. Despite generating increased profits during the first few months of the year, T-Mobile is contemplating a significant pricing change in response to a growing threat. On April 2, Trump announced a 10% "baseline" tariff on all countries importing goods to the U.S., with roughly 60 countries seeing higher tariff rates. Tariffs are taxes companies pay to import goods from overseas, and the extra cost is often passed down to consumers through price hikes. However, on April 9, he switched gears and enforced a 90-day pause on reciprocal tariffs on all countries (except China), dropping them to a universal rate of 10%. He also unexpectedly hiked tariffs on China to 145%.During an earnings call on April 25, Sievert said that Trump's tariffs are 'hard to predict right now,' and if they affect phone manufacturing, T-Mobile customers will 'wind up bearing the cost.' 'We certainly understand the goals of the administration,' said Sievert. 'It's not clear how much this (tariff policy) is going to affect the handset market. I think to the extent that it does land, and if it's a material thing, ultimately, I think we're going to see that the customer is going to wind up having to bear that cost. Taking on something big on the tariff front is just not something our business model is interested in trying to do or able to try to do.' He acknowledged that raising phone prices could cause the company to see 'a slowdown in upgrade rates.' As Trump doubles down on his tariff plan, Americans across the country have been rushing to purchase new electronic devices to avoid paying inflated prices that could result from tariffs. According to a survey from CNET in March, 33% of U.S. adults have felt pressured to make tech purchases due to fear of potential price hikes from tariffs, while one in five adults have already made a purchase. Amid this trend, T-Mobile is already noticing a slight boost in the number of customers upgrading phones and switching phone providers. 'I think there's a certain element out there where people are in a time of uncertainty about the future, grabbing what they can afford now,' said Sievert. More Retail: AT&T quietly issues stern warning to customers Sam's Club makes a big change to a beloved membership perk GameStop announces risky move amid store closures While Sievert made it clear during the call that T-Mobile isn't afraid to pass down tariff costs to its customers, he also addressed the company's most recent price increase. He said that the change affected 'some customers,' impacting millions of legacy rate plans, and customers 'understand' and have accepted these price hikes. 'What we are out there doing right now is really just completing a project that we started last year to get after some long outdated plans,' said Sievert. 'First price increase of this kind in more than a decade. And I think because of that, our customers have a lot of acceptance of it. I think they understand, especially since we take our time in a 'test and learn' explain to them what's behind it.'Sign in to access your portfolio
Yahoo
27-04-2025
- Business
- Yahoo
T-Mobile announces the official name and confirms pricing for its satellite service
Despite a lot of backlash about rising prices and other small issues, T-Mobile's future looks bright. The wireless carrier just announced its best quarter yet by adding 1.3 million paid subscribers, crushing competitor Verizon, which saw a record loss. Not only that, but during its Q1 earnings call, CEO Mike Seivert went a little more in-depth about its upcoming satellite service that's currently in beta. Sievert shared on the call that it would be called T-Satellite and that it would be priced at $10 per month. The service has amassed quite a number of users during its short trial period, with hundreds of thousands of users giving it a try. And it's easy to understand why. Being able to communicate in places that previously didn't have service is a huge leap. Not only is this crucial when you're in an emergency situation, but it also makes it possible for those in remote areas to stay connected as well. The big news today was that when the service goes live, and as mentioned before, that it will be available for just $10 per month. It's important to note that T-Mobile customers with the Go5G Next and Experience Beyond plans will get satellite service access for free. Perhaps the icing on the cake here is that this pricing will also be extended to AT&T and Verizon customers as well. Sievert stated that the rate will be good for at least a year, and that commercial service will make its debut in July, but didn't deliver any word on pricing. You can watch the details in the video above, starting at the 7-minute and 30-second mark. Currently, T-Mobile has over 550 satellites in orbit to make this service work, and was able to achieve this with the help of SpaceX. Now, T-Mobile isn't the only one working on satellite service for its customers, with both Verizon and AT&T also offering similar services. It will be interesting to see how this space takes off in the years to come.
Miami Herald
27-04-2025
- Business
- Miami Herald
T-Mobile CEO has a harsh warning for customers
T-Mobile (TMUS) is facing record-high consumer demand despite recently hiking its prices. This move has frustrated customers to the point where some have even threatened to cut ties with the company. In T-Mobile's first-quarter earnings report for 2025, the company revealed that it added 1.3 million postpaid customers, which is the best result it has ever achieved during any first quarter of a year. Don't miss the move: Subscribe to TheStreet's free daily newsletter T-Mobile specifically added 495,000 new postpaid phone customers and 424,000 new high-speed internet customers, which contributed to the company generating a net income of $3 billion, 24% higher than what it earned during the same quarter in 2024. Related: T-Mobile angers customers with latest warning "A record number of customers chose the Uncarrier in Q1 - we grew postpaid gross additions year-over-year across the board and our High Speed Internet business led the industry in net customer additions for the 13th straight quarter," said T-Mobile CEO Mike Sievert in the report. This increased consumer momentum comes after the phone carrier implemented a $5 price hike for some of its older phone plans earlier this month. A few weeks later, T-Mobile also increased its Regulatory Programs & Telco Recovery Fee from $3.49 to $3.99 for voice lines and from $1.40 to $1.60 for data-only lines, further frustrating customers. Image source:Despite generating increased profits during the first few months of the year, T-Mobile is contemplating a significant pricing change in response to a growing threat. On April 2, Trump announced a 10% "baseline" tariff on all countries importing goods to the U.S., with roughly 60 countries seeing higher tariff rates. Tariffs are taxes companies pay to import goods from overseas, and the extra cost is often passed down to consumers through price hikes. However, on April 9, he switched gears and enforced a 90-day pause on reciprocal tariffs on all countries (except China), dropping them to a universal rate of 10%. He also unexpectedly hiked tariffs on China to 145%. Related: AT&T's response to a growing threat spells trouble for customers During an earnings call on April 25, Sievert said that Trump's tariffs are "hard to predict right now," and if they affect phone manufacturing, T-Mobile customers will "wind up bearing the cost." "We certainly understand the goals of the administration," said Sievert. "It's not clear how much this (tariff policy) is going to affect the handset market. I think to the extent that it does land, and if it's a material thing, ultimately, I think we're going to see that the customer is going to wind up having to bear that cost. Taking on something big on the tariff front is just not something our business model is interested in trying to do or able to try to do." He acknowledged that raising phone prices could cause the company to see "a slowdown in upgrade rates." As Trump doubles down on his tariff plan, Americans across the country have been rushing to purchase new electronic devices to avoid paying inflated prices that could result from tariffs. According to a survey from CNET in March, 33% of U.S. adults have felt pressured to make tech purchases due to fear of potential price hikes from tariffs, while one in five adults have already made a purchase. Amid this trend, T-Mobile is already noticing a slight boost in the number of customers upgrading phones and switching phone providers. "I think there's a certain element out there where people are in a time of uncertainty about the future, grabbing what they can afford now," said Sievert. More Retail: AT&T quietly issues stern warning to customersSam's Club makes a big change to a beloved membership perkGameStop announces risky move amid store closures While Sievert made it clear during the call that T-Mobile isn't afraid to pass down tariff costs to its customers, he also addressed the company's most recent price increase. He said that the change affected "some customers," impacting millions of legacy rate plans, and customers "understand" and have accepted these price hikes. "What we are out there doing right now is really just completing a project that we started last year to get after some long outdated plans," said Sievert. "First price increase of this kind in more than a decade. And I think because of that, our customers have a lot of acceptance of it. I think they understand, especially since we take our time in a 'test and learn' explain to them what's behind it." Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
25-04-2025
- Business
- Yahoo
Verizon, AT&T, and T-Mobile prepare to raise prices on consumers because of Trump's trade war
The smartphone ecosystem has avoided the biggest brunt of President Trump's tariffs, for now. But if that for now ends, major phone carriers appear poised to dump the higher costs of smartphones onto the laps of consumers. Trump earlier this month exempted smartphones and some other electronics from his reciprocal tariffs, though he left a 20% fentanyl tariff on China intact. The exemption could prove temporary, keeping the prospect of 145% tariffs on China (where Apple (AAPL) makes its iPhones in play. Even the 20% fentanyl tariff on China may sting consumers soon if no trade deal between the two superpowers is reached. The price of an iPhone 15 would increase to $839 from $699 currently, according to an analysis from tech publication CNET. The iPhone 16 would climb to $959 from $799. Read more: What Trump's tariffs mean for the economy and your wallet Here is what the major phone carriers said this week as they reported earnings about the potential for tariff-driven price increases on consumers. "In general, if the tariff is going to be as high as they say on the handsets, we are not planning to cover that in our work," Vestberg said. "That's just not going to be possible. So, we will continue to be financially disciplined in whatever promotions we have, but we will not cover any enormous increase on tariffs on handsets. That's ultimately going to hit the consumer in the market. But again, it's too early to say. We don't know where tariff is going to go." "So if tariffs are the next driver of an increase in the unit cost of handsets, I imagine we're going to have to go through the exact same play, which is, first of all, understand what the customer needs and then make some adjustments to how we support them in that process," Stankey said. "But that process is going to be taking that cost as we've traditionally done and largely moving it through to the end user and fitting it into the business model of ultimately what we can afford to drive the right level of returns in our business. And I think we've demonstrated over time that we've done that fairly effectively." "Tariffs are unpredictable at this point," Sievert said. "Obviously, we're watching closely. If they come in and they're significant in some way, that's going to have to be borne by the customer. I mean, our model isn't prepared for something like that." Sievert added, "I think what would happen is prices will rise for smartphones, and then people will slow down their purchases of smartphones, and upgrade rates will slow. Those would be the dynamics that would happen. We don't see that that is on the way." Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on X @BrianSozzi, Instagram and on LinkedIn. Tips on stories? Email Click here for all of the latest retail stock news and events to better inform your investing strategy Sign in to access your portfolio
