AT&T CEO Sees Less Hope That 5G iPhone Will Fuel Upgrade
Pandemic-ravaged economy will weigh on phone shoppers
‘We aren’t in the best of economic times,’ Stankey says
The wireless industry has long hoped that the arrival of 5G-enabled devices, including Apple Inc.’s flagship iPhone, will fuel a massive upgrade cycle.
But the buying spree could be less dramatic than originally expected, AT&T Inc. Chief Executive Officer John Stankey said in an interview Tuesday. Given the pandemic-hobbled economy – and the fact that many customers won’t immediately see a big jump in service speed – shoppers may take it slow embracing new models.
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John StankeyPhotographer: Andrew Harrer/Bloomberg
It will still be a healthy holiday season for the industry, he said, just not the wished-for blowout.
“We aren’t in the best of economic times,” said Stankey, who took the reins at AT&T in July.
The 5G iPhone, due this fall, is generally good news for AT&T – especially since its subscribers use Apple phones at higher rates than average. Still, they may take some persuading.
Peer pressure could help, Stankey said. Consumers could be egged on by a “pack mentality” after the phone debuts, he said: When one person gets it, others will see “this nice new shiny object and say, ‘I need it, too.’”