Verizon CFO warns the company of this worrying customer trend

Verizon's CFO has expressed concerns about a trend among the customers of the telecommunications giant.

Since the cost of living continues to increase worldwide, Verizon's CFO, Tony Skiadas, announced that mobile customers in the United States are now choosing a longer period of time.

A brand new telephone can cost between $ 500 and $ 1,500, and a recently carried out wallet club survey showed that 63 percent of Americans would not buy a new cell due to inflation.

Apart from the considerable costs, Skiadas said that another reason was why people hesitate, so often that phones are now “better done”.

“Customers stay after the election to hold on to their phones longer,” said Skiada's Morgan Stanley Technology, Media & Telecom Conference in the early this month. “The average upgrade cycle for us is just over 40 months, it is currently 42 months.

“We now have a few years when the recording gave a decline. As always, we can see seasonality in it. “

Nevertheless, Verizon continues to increase and achieves the total turnover of $ 27.6 billion, an increase of 2.2% in the previous year. The street reported. And the CFO informed the conference that Verizon, despite the shift in consumer habits, “would continue to be disciplined in our approach to storing”.

When he was pushed on whether they experienced a “supercycle” – a time of strong economic growth with typically strong demand for goods – he replied “no”.

From 2023, the latest data from the social security management suggests that the average salary in the USA is $ 66,622. In contrast to many living costs, new mobile phones cost the same nationwide.

The walllethub analyst Chip Lupo said: “This year consumers stops their phones because 63% of people state that they will not buy a new phone due to inflation. If the daily living costs are already high, many people find it difficult to justify an expensive telephone upgrade.

“In fact, nine out of ten Americans believe that iPhones are overpriced, so that Apple and other telephone companies may consider reducing prices or offering more important functions between models to give customers.”