TMUS Stock: T-Mobile and Apple Team Up to Offer Small Business Plan
Source: r.classen / Shutterstock.com
Early this morning, telecommunications firm T-Mobile (NASDAQ:TMUS) announced a partnership with consumer electronics stalwart Apple (NASDAQ:AAPL). It’s launching what the former claims is “the first and only wireless plan that includes Apple Business Essentials, AppleCare+ for Business Essentials, a new iPhone 13 for new lines, and more.” Geared for small businesses, T-Mobile hopes to capitalize on entrepreneurial growth. However, TMUS stock is down about 3% in the afternoon session.
The Business Unlimited Ultimate Plus plan for iPhone incorporates several features and benefits under a single, cost-effective umbrella. For instance, each employee who adds a new line under the plan will receive a new iPhone 13. Furthermore, it is the only wireless plan that provides access to Apple Business Essentials, which “combines device management, 24/7 Apple support, and iCloud backup and storage — into a single, flexible subscription.”
Interestingly, customers under this package also receive unlimited Wi-Fi on select flights from American Airlines (NASDAQ:AAL), Delta Air Lines (NYSE:DAL) and Alaska Air Group (NYSE:ALK). This may be relevant to current dynamics, with the New York Times reporting on a resumption of business travel.
Despite the many positive implications for T-Mobile and Apple, TMUS stock printed red ink in the afternoon hours. On the other hand, AAPL stock is rising today, reflecting a conspicuous dichotomy.
Sustainability Concerns May Be Pressuring TMUS Stock
In its press release, T-Mobile stated that last year, “there were 5.4 million new business applications filed in the U.S. — the most of any year on record. That means more and more small business owners navigating the challenges of running a business for the first time.”
As a result of these trials, “T-Mobile and Apple are ready to help small businesses with an all-in-one plan that combines 5G connectivity, device management, 24/7 support, secure cloud storage and backup, and more.” Though well-intentioned, TMUS stock may face concerns of sustainability that have impacted other industries.
Economic conditions in the year so far have faltered substantially compared to just one year ago. For instance, the U.S. Bureau of Labor Statistics reports that in the entire year of 2021, the purchasing power of the dollar declined by more than 6%. However, just in the first half of 2022, purchasing power has dipped 5.3%.
In other words, the marching beat of inflation basically skipped to double time this year, making prognostications based on what happened last year fraught with risk.
Telecom Is in Focus
Analysts will be focusing on the telecom industry as several major players disclose their results for the second quarter. Depending on how companies perform and their outlook for the future, investments like TMUS stock could shift in sympathy. Therefore, investors should exercise strict money management and analytical rigor irrespective of today’s news.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.