T-Mobile expecting falling sales in the coming year
Deutsche Telekom owned T-Mobile has been pretty successful in the recent years. However, the mobile company is now fearing falling sales in the coming year as the prices have fallen down considerably leading to falling sales and profits.
Head of T-Mobile Deutschland Philipp Humm said in a statement: “There is overcapacity in the market and lots of room on the price side”. He was speaking to the Wednesday’s edition of the Financial Times Deutschland.
He added that despite the fact that mobile phone usage was on the rise, lower tariffs won’t help the mobile service providers much. Cheaper alternative service providers are putting a lot of pressure on T-Mobile to stay competitive with lower prices, which is hurting their bottom-line.
The company has already reported falling sales in the first couple of months of the current year.