US telecommunications giant AT&T struggles with falling sales

Last week, US telecommunications provider AT&T announced it would close its flagship shopping destination in downtown San Francisco.

“Consumer shopping habits continue to change, and we are adapting to that. The company will serve customers wherever they are with a combination of retail stores, digital channels and customer care teams over the phone,” AT&T said.

AT&T is the second largest mobile phone service provider and the largest landline phone service provider in the United States.

The move by one of the largest telecommunications providers in the United States reflects the trend of tightening consumer spending after the pandemic. Previously, in April, AT&T announced a disappointing business report for the first three months of 2023, when it missed Wall Street experts' expectations on market estimates as well as quarterly revenue.

Specifically, during the first quarter, US carriers added 424,000 postpaid phone subscribers - a figure equivalent to Factset's estimate of 422,800 subscribers, but the lowest level in the past two years.

Similarly, Verizon Communications also suffered from mobile subscriber losses, as Americans were affected by inflation.

Uncertain macroeconomic factors, along with rising interest rates, are believed to be causing consumers to put off upgrading their devices and look for cheaper plans.

Verizon lost 127,000 mobile phone subscribers in the first three months of the year. The carrier's total revenue fell 1.9 percent to $32.9 billion, below analysts' estimates of $33.57 billion.

T-Mobile reported a 2.4% decline in quarterly revenue to $19.63 billion in the same period. The carrier added 538,000 monthly subscribers in the quarter, compared with 927,000 in the December quarter.

(According to Reuters)

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