Wireless Companies are Getting More Money out of Your Older Phone

AT&T, T-Mobile, and Verizon made more money from providing wireless services in the third quarter of 2023 compared with the prior year as they added phone lines and nudged many clients toward more expensive plans. The boost in service revenue helped offset weaker equipment sales as purchases of pricey phones slowed at their stores and websites. “Customers are holding on to their phones longer,” said Tony Skiadas, finance chief for Verizon, the country’s largest wireless carrier by subscribers. “I don’t think that’s going to change.” Ebbing smartphone sales would ordinarily be bad news for Apple, which is slated to report quarterly earnings on Nov 2. The iPhone maker has accounted for more than half of annual US smartphone sales since 2021, according to Counterpoint Research. But Apple, too, has adapted to a less phone-hungry customer base. The manufacturer has fostered a thriving secondary market for older smartphones that keeps more customers using them for longer, helping to increase its market share as device sales slow. Revenue growth from services such as advertising, iCloud, and the App Store, while small compared with smartphone sales, have also become a profit engine.