On Tuesday, Verizon announced it will no longer purchase more phone parts.
In an earnings call with analysts, Verizon’s CEO Lowell McAdam said that it will stop selling “specialized components” that “do not meet our customer needs.”
The move is a major blow to Verizon’s efforts to lower its costs as it works to lower costs and keep its smartphone subscribers happy.
Verizon, which recently made the move to buy the cellphone phone maker T-Mobile US for $39.2 billion, is one of the biggest phone providers in the United States.
The carrier has been trying to make the switch to lower prices, but has struggled to do so due to the price of smartphone parts.
In May, Verizon was forced to recall 2 million cell phone batteries after a company report said that battery cells were overcharged in a number of different ways.
Verizon has also faced some criticism for its high price of cell phone parts, as well as its slow pace at lowering its prices.
Verizon CEO Lowell McMadson said on Tuesday that the move will “save consumers hundreds of dollars over the next two years.”
The company said that its “most costly component in the marketplace is a specialized cell phone battery,” and that it has spent $7 billion in the past five years to make that part more efficient.
In a statement to NBC News, Verizon said that “these components do not meet the needs of the average consumer.”
In addition to the cost savings, Verizon says it will save customers more money in the long run because it will lower the amount of time consumers spend on the phone, rather than spending more time in the phone itself.
“This reduction in costs will help us maintain our profitability in the coming years,” McMadsen said.
“The company has already demonstrated its commitment to improving our customer experience and the customer’s overall satisfaction, and will continue to work diligently to deliver that with the help of the new pricing strategy.”
Verity said that the cost reduction will not affect any customers who are still using a smartphone.
A company spokeswoman told NBC News that Verizon will not “tinker with” the pricing for any customers.
According to the company’s earnings release, Verizon is “investing heavily in research and development and is taking the necessary steps to improve our cell phone performance, reliability and performance of our network.”
Verizon’s new pricing plan, which is being released today, comes on the heels of a similar move by Sprint.
The company announced that it would stop selling its smartphones at the end of April, but will still sell them in stores for the time being.