With prices being dropped to get more customers in, ARPU falling and acquisition costs therefore going up…..margins and cash flow are falling and will continue to, and guess what’s next……yes, more major headcount reductions coming soon to try and improve the margins. It is simple P&L math, just watch…..
8 replies (most recent on top)
@ce look at the prices! They are there for everyone to see. Massive subsidy and huge price cuts. What else can he do, not had time to do anything more fundamental. So yes, price cutting is it!
@OP Agree! Most of the profits from these 4 iPhone 17s or iPhone 17 pros on us deals go to Apple. Declining ARPUs are happening across the industry but T-Mobile has always been the low margin competitor so it’s less of a problem for them.
Verizon and AT&T need to come up with a better strategy but for now they’re just managing the decline as best they can.
But the first thing Dan said to us was that dropping price was the worst business model and that's why the market doesn't take us seriously. So you're saying we have no stopped dropping price ??
@a6 We have seen this before.
It's how K-Mart responded to Wal-Mart, just keep matching the price without changing the business.
@OP whatev's
The new Frontier offer is a prime example of this. The second V got hold of this company they drop the a-s out of Frontier’s prices. ATT do not do this yet still win biggly each Q.
@a2 100% right. Verizon are so sc--wed. And until they get real leadership that knows how to build a sustainable winning (and commercial) culture they’re just going to keep discounting in the name of customer growth and ‘delighting customers’. Haha have we not seen this before….
100% accurate. The inside baseball is Q4 was total internal turmoil.... zero process/priduct change ither than change prices to get Customers who will then switch when competition lowers offers and eace to bottom.
The Vz kevin Hart commercials doing so Angels definitely did not help.
Today the DEI Crowd doing a remote circlej--kRemember, AT&T and others scrapped hybrid and are get your a-s to office. AT&T results proved that value.