The carrier will no longer absorb rising memory chip costs, passing higher smartphone prices to customers with extended payment plans.
T-Mobile will stop subsidizing new phone purchases, requiring customers to pay more for devices as memory chip prices climb. CEO Srini Gopalan confirmed the shift during recent earnings calls, citing 250 reasons for customers to switch beyond free phone offers.
The company previously offered 24-month financing but will now extend plans to 36 months to lower monthly payments. Gopalan warned that rising component costs will increase smartphone prices across the industry, with T-Mobile refusing to boost subsidies.
T-Mobile introduced its “Nothing” initiative, allowing customers to finance new phones with $0 upfront under the new 36-month terms. The change follows earlier announcements scaling back free device promotions.