T-Mobile subscribers should brace themselves, as a potential price increase may be on the horizon. This warning comes directly from the CEO of T-Mobile, Mike Sievert, who explains that tariffs are the primary reason for this looming price hike. In their recent Q1 2025 earnings report, T-Mobile unveiled impressive financial results, showcasing a revenue increase of 6.6% from Q1 2024, totaling $20.9 billion. Additionally, the company saw a notable surge in net income, up 24% to $2.95 billion.

With a profit margin climbing to 14% and earnings per share rising from $2.00 to $2.59, T-Mobile’s performance seems strong on the surface. Despite these promising numbers, T-Mobile feels a price increase is warranted. Sievert indicated that upcoming tariffs could significantly impact the handset market. “We’re aware of the administration’s objectives, but we’re uncertain about the extent of the impact on our business.

If these tariffs materialize, it’s likely customers will have to absorb some costs,” he stated. He emphasized that taking on substantial tariff-related expenses is not feasible under the current business model. This would not be the first instance of T-Mobile raising their prices; they have done so in the not-too-distant past. Sievert assured customers that any recent price adjustments were part of a long-planned initiative to update outdated pricing structures.

As T-Mobile contemplates this price hike, the reaction from customers remains uncertain. Currently, the carrier is facing mounting criticism from both customers and employees, especially regarding the mandatory rollout of the T-Life app, indicating growing discontent within its user base and workforce.