AT&T (T) managed to understand elevated momentum from customers through the first few months of this yr, regardless of not too long ago scaling again a vital low cost.
In its first-quarter earnings report for 2025, AT&T revealed that it generated a internet earnings of $4.7 billion through the quarter, which is nineteen% increased than what it earned throughout the identical quarter in 2024.
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AT&T additionally added 324,000 new postpaid telephone prospects and 261,000 new Fiber web prospects through the first few months of the yr.
Associated: AT&T quietly points stern warning to prospects
These outcomes come after AT&T quietly warned prospects final month that beginning on April 24, their autopay low cost will lower from $10 to $5 in the event that they pay their month-to-month invoice with a debit card. This transfer annoyed prospects, with some even threatening to change telephone suppliers.
Whereas AT&T is dealing with elevated income, the telephone provider is sounding the alarm on the potential influence of a rising risk.
On April 2, President Donald Trump raised eyebrows throughout the nation when he introduced a ten% “baseline” tariff on all international locations importing items to the U.S., with roughly 60 international locations seeing increased tariff charges.
Tariffs are taxes corporations pay to import items from abroad, and the additional price is usually handed right down to customers by way of value hikes.
Nevertheless, on April 9, he switched gears and enforced a 90-day pause on reciprocal tariffs on all international locations (besides China), dropping them to a common fee of 10%. He additionally unexpectedly hiked tariffs on China to 145%.
Associated: Verizon suffers main loss as prospects swap gears
Throughout an earnings name on April 23, AT&T CEO John Stankey mentioned that tariffs can have a detrimental influence on quite a lot of gadgets the corporate sells.
“The introduced tariffs might doubtlessly enhance the price of smartphones and different gadgets, in addition to the price of community and technical tools,” mentioned Stankey. “The magnitude of any enhance will rely on a wide range of components, together with how a lot of the tariffs our distributors move on, and the influence that the tariffs have on client and enterprise demand.”
He additionally warned that AT&T could must hike costs for its gadgets resulting from Trump’s tariffs.
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“So I feel that if in the end prices are handed to us from those who we purchase handsets from, sadly for the client, we’re going to must provide you with some new methods for them to determine digest that enhance in pricing,” mentioned Stankey.
