Customers in the United States should be mindful of rising smartphone costs, particularly when purchasing devices through major carriers like AT&T, T-Mobile, or Verizon. Recently, two of these carriers have announced they will not absorb any potential tariff costs associated with smartphones. During Verizon’s Q1 2025 earnings call, Chairman and CEO Hans Vestberg confirmed that the company will not cover the increased costs related to tariffs on handsets.
He stated that, “If the tariff is going to be as high as they say on the handset, we’re not planning to cover that in our work.” Vestberg highlighted the impact this could have on consumers, indicating that higher costs would ultimately be passed down to them. Moreover, Vestberg noted that there’s no indication at this time that customers are sufficiently worried about tariff costs to consider purchasing phones in advance to avoid these price hikes. He mentioned that Verizon is collaborating with suppliers to mitigate the effects of tariffs, although the outcome remains uncertain.
In alignment with Verizon’s stance, AT&T’s CEO John Stankey also confirmed that the company would transfer any tariff-related costs to consumers. During AT&T’s earnings call, he mentioned the necessity of finding creative ways to manage the anticipated price increases. Stankey expressed, “If ultimately costs are passed to us from those that we buy handsets from, we’re going to have to come up with some new ways for them to figure out how to digest that increase in pricing.”
Stankey further shared his perspective on President Trump’s tariffs, asserting that U.S. companies now face challenges due to the unpredictability of trade policies.
As tariffs loom, consumers should be prepared for potential increases in smartphone prices.