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Verizon dropping early upgrades, discounts ahead of iPhone launch

post #1 of 41
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In advance of its Feb. 10 launch of the iPhone 4, Verizon has discontinued early phone upgrades and its "New Every Two" program, which offered credits of up to $100 for new phones every two years, according to a new report.

Verizon officials told SmartMoney Wednesday that the "New Every Two" program will come to an end on Jan. 16. Though customers currently enrolled in the program will still be able to redeem their credits, current customers won't be re-enrolled for the program after their next upgrade, and new customers who sign up after Jan. 16 will be unable to sign up for the program.

The "New Every Two" FAQ on its Verizon website currently gives no indication that the promotion is ending.

The nation's largest wireless carrier is also tightening its early upgrade policy. "Customers who were previously eligible for discounted phones as early as 13 months into a two-year contract will now have to wait 20 months to get a new phone at the promotional new-customer price," the report noted.

A Verizon representative contacted by AppleInsider Wednesday confirmed that the earliest a customer can upgrade to a new phone is 20 months into a 24 month contract. However, some AppleInsider readers report being eligible for an iPhone upgrade on Verizon before the stated 20 month requirement.

In its iPhone FAQ , the carrier clearly states that "Verizon Wireless is not offering any early upgrade promotion at this time."

Apple and Verizon revealed Tuesday that a CDMA iPhone 4 will be coming to Verizon on Feb. 10, with preorders beginning "on or around" Feb. 3. Verizon President Lowell McAdam said in an interview that technical planning for the CDMA iPhone took "six to nine months," while the commercial side took just one day.

Wireless carriers have found themselves caught between customers clamoring for more frequent smartphone upgrades and the need to recoup losses from subsidized handsets. According to Morningstar analyst Michael Hodel, after AT&T offered early upgrades to existing iPhone customers last year when the iPhone 4 was released, the company's profit margins "shrunk considerably."
post #2 of 41
Well thats dumb of them to do.

I know they have always historically differed from AT&T on this policy, but its not going to look good for them when all the AT&T subscribers (at least the ones who pay over $100 a month) can upgrade after a year to the latest iPhone, while VZW customers have to wait 20 months.
post #3 of 41
Hmm...kinda sucks. I like early upgrades, but I realize that it eats into carrier profits. I hope AT&T will keep offering early upgrades. Might give some an incentive to stay.

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post #4 of 41
Quote:
Originally Posted by OhReallyNow View Post

Well thats dumb of them to do.

I know they have always historically differed from AT&T on this policy, but its not going to look good for them when all the AT&T subscribers (at least the ones who pay over $100 a month) can upgrade after a year to the latest iPhone, while VZW customers have to wait 20 months.

AT&T only did that last year. It was the first sign that AT&T was going to lose their exclusivity with a year as the move locked people into new 2 year contracts, and with higher ETFs. They took a smaller loss then to prevent a larger loss this year. I dont think theyll be doing it again.
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post #5 of 41
In a way it's a bit ridiculous that we should NEED a new phone every year. I had my Treo 650 from 2005 until 2009 and it held up well. Do we really need to be able to upgrade our handsets that often?

My iPhone 4 is awesome and I can't see myself having an intense need to upgrade it when the next one comes out. However, in two years I can see upgrading.
post #6 of 41
I'd say there's a pretty good chance it's related. AT&T pays a large subsidy to Apple for every iPhone sold and Verison will undoubtedly do the same. Apple releases new iPhone every year and people flock to it. That combined with Verizon's early upgrade policy would produce lots of people getting a new iPhone every year and Verizon paying more subsidies more frequently to Apple. Attractive to Apple, not so much to Verizon.

I'm OK with this. Obviously they are investing tons of money into LTE/4G right now and I'd rather them be investing in that instead of paying Apple subsidies hand over fist. 4G will benefit everyone on Verizon, including iPhone users.
post #7 of 41
For people who have already upgraded with their old contact which included "New Every Two", after the 16th, people will have to pay the retail price for they're upgrades?
post #8 of 41
2 year upgrade cycle is "early upgrade". How long should we wait to get a phone then?
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post #9 of 41
Quote:
Originally Posted by solipsism View Post

AT&T only did that last year. It was the first sign that AT&T was going to lose their exclusivity with a year as the move locked people into new 2 year contracts, and with higher ETFs. They took a smaller loss then to prevent a larger loss this year. I dont think theyll be doing it again.

I've done it every single year except the initial iPhone.
post #10 of 41
Quote:
Originally Posted by iancass79 View Post

I've done it every single year except the initial iPhone.

Then perhaps Im mistaken, but I was only able to do it last year.
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post #11 of 41
Quote:
Originally Posted by AppleInsider View Post

In advance of its Feb. 10 launch of the iPhone 4, Verizon has discontinued early phone upgrades and its "New Every Two" program, which offered credits of up to $100 for new phones every two years, according to a new report.



I think that there is a lot of pent-up demand for the iPhone among certain types of people. I think that those type of people will get a Verizon iPhone whether it costs them an extra hundred bucks or not. I think that Verizon knows this as well, and will thank Apple all the way to the bank.
post #12 of 41
That's all really funny. As a VZ subscriber, I tried to do the pre-launch info on the email that was sent. I'm 1 year or less into my VZ contract.

I'm eligible for an iphone, but there's a $20 early upgrade charge. I'm ok with that. The main reason is that I don't want an iphone that does less than what my current phone does.

Also, just to add, we get full VZ speeds here in my area. ATT, at best, gets only 700k maximum. It's probably an ATT capacity issue, and they surely could learn about capacity from VZ.

Couple that with driving 10 mins out of the city, and ATT is on EDGE... 10 mins out of the city... nobody can stand edge unless it's a last resort if you are lost... oh wait the iphone doesn't have built-in-navigation.... hmmmm.
post #13 of 41
What am I missing? Question number 6 on the Verizon iPhone FAQ seems pretty reassuring:

"Will existing customers be able to redeem their New Every Two credit?

Yes, existing customers will be able to take advantage of their New Every Two credit if eligible, and use it towards the purchase of iPhone (may not be available at all agent locations)."
post #14 of 41
Quote:
Originally Posted by malax View Post

What am I missing? Question number 6 on the Verizon iPhone FAQ seems pretty reassuring:

"Will existing customers be able to redeem their New Every Two credit?

Yes, existing customers will be able to take advantage of their New Every Two credit if eligible, and use it towards the purchase of iPhone (may not be available at all agent locations)."

They aren't taking away a customer's NE2 that still has one, only saying that once they use it (if it's after January 16th), they will not get another one again.
post #15 of 41
Not necessarily wanting the iPhone anyway - but in over 10 years with VZW I've had three expensive hardware failures and 4 bum batteries - I lean toward changing supplier due to this inept change (no new) and introducing what is basically a crippled version. Free minutes ona family play? - that's NOTHING new, even Verizon-to-Verizon has been free. I'm hearing a DROID voice telling me to ditch them. Way too expensive for the service offered.
post #16 of 41
Quote:
Originally Posted by j_lavasser View Post

For people who have already upgraded with their old contact which included "New Every Two", after the 16th, people will have to pay the retail price for they're upgrades?

Its misleading. Anyone that's currently in a NE2 contract will get the rebate but will not be able to sign a NE2 contract, and I'm guessing that anyone that buys a phone before the 16th can still get it.
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post #17 of 41
Quote:
Originally Posted by MOEW View Post

That's all really funny. As a VZ subscriber, I tried to do the pre-launch info on the email that was sent. I'm 1 year or less into my VZ contract.

I'm eligible for an iphone, but there's a $20 early upgrade charge. I'm ok with that. The main reason is that I don't want an iphone that does less than what my current phone does.

Also, just to add, we get full VZ speeds here in my area. ATT, at best, gets only 700k maximum. It's probably an ATT capacity issue, and they surely could learn about capacity from VZ.

Couple that with driving 10 mins out of the city, and ATT is on EDGE... 10 mins out of the city... nobody can stand edge unless it's a last resort if you are lost... oh wait the iphone doesn't have built-in-navigation.... hmmmm.

And what exactly are you doing on here other than trolling?
post #18 of 41
Quote:
Originally Posted by CeeJay View Post

Not necessarily wanting the iPhone anyway - but in over 10 years with VZW I've had three expensive hardware failures and 4 bum batteries - I lean toward changing supplier due to this inept change (no new) and introducing what is basically a crippled version. Free minutes ona family play? - that's NOTHING new, even Verizon-to-Verizon has been free. I'm hearing a DROID voice telling me to ditch them. Way too expensive for the service offered.

You can't blame crappy hardware on them. I've actually been lucky with the phones I've chosen but your story of crappy phones is well known. A crippled iPhone is still light years ahead of most of their phones.
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post #19 of 41
Quote:
Originally Posted by hittrj01 View Post

And what exactly are you doing on here other than trolling?

What just because he's a VZW customer means he doesn't own other Apple products? This is not a solely iPhone blog.
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post #20 of 41
Quote:
Originally Posted by MOEW View Post

That's all really funny. As a VZ subscriber, I tried to do the pre-launch info on the email that was sent. I'm 1 year or less into my VZ contract.

I'm eligible for an iphone, but there's a $20 early upgrade charge. I'm ok with that. The main reason is that I don't want an iphone that does less than what my current phone does.

Also, just to add, we get full VZ speeds here in my area. ATT, at best, gets only 700k maximum. It's probably an ATT capacity issue, and they surely could learn about capacity from VZ.

Couple that with driving 10 mins out of the city, and ATT is on EDGE... 10 mins out of the city... nobody can stand edge unless it's a last resort if you are lost... oh wait the iphone doesn't have built-in-navigation.... hmmmm.

Is there a point you're trying to make, or do you just normally sound random?
post #21 of 41
@MOEW

If you are insinuating "built in navigation" as in you don't need data connection, then you are wrong. Most navigation apps now are all stored on the iPhone and don't need data connection like vz navigator.
post #22 of 41
Quote:
Originally Posted by solipsism View Post

AT&T only did that last year. It was the first sign that AT&T was going to lose their exclusivity with a year as the move locked people into new 2 year contracts, and with higher ETFs. They took a smaller loss then to prevent a larger loss this year. I dont think theyll be doing it again.

Nah, I've always been offered upgrade pricing after 12 months, upgrading from each of the 3 iPhones to the next. I pay over $120 a month for service though.
post #23 of 41
Good luck Verizon. There are two options for iPhone providers now, and I can port my number wherever I want when it's time to upgrade and never miss a call when I do.
post #24 of 41
Quote:
Originally Posted by hittrj01 View Post

They aren't taking away a customer's NE2 that still has one, only saying that once they use it (if it's after January 16th), they will not get another one again.

If I've had my current Verizon phone for over three years, will they pay me to get an iPhone? After all, I kept paying the full plan prices long after my phone subsidy was paid off.
post #25 of 41
Quote:
Originally Posted by dasanman69 View Post

What just because he's a VZW customer means he doesn't own other Apple products? This is not a solely iPhone blog.

Agreed. I've been saying the same thing for years.
post #26 of 41
No you likely should not need a new phone every year or two.

I think the OEMs have created an world where they want you to think you need a new phone every two years and the carriers have played along because it means you are more likely to renew with them - especially if there are incentives for early upgrade or penalties for leaving before the end of a contract.

My guess is we have gotten to a point where the new hardware is not cheap disposable crap and the old model of giving the phone away free is not leaving enough profit margin for ALL the players in the game.

And at the same time - if you are getting a free phone every two years - then why not. Of course the trick is that when you go to the store thinking I will get a free phone - how often do you end up instead with a $100 or $150 or $100 plus activation plus service upgrade etc - and the "free" phone costs you $250 by the time you are done.

For me I think 3 years is about how long I have had most phones - one exception being the original iPhone - which I have given to my son as an iPod Touch (no cell service). Any time I am looking for some new hardware I start by looking to see who would buy my old tech from me - although about half the time I end up giving it away or storing it away for years thinking I will find a use for it then wondering 10 years later why I still have this ancient piece of junk cluttering up my basement.
post #27 of 41
Another thing Verizonite smart phone lovers will have to get used to... NO iPhone BOGO offers. Ever!

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post #28 of 41
This announcement is no surprise. No discounts on iPhone.

Early upgrades are always negotiable.
post #29 of 41
Quote:
Originally Posted by Rot'nApple View Post

Another thing Verizonite smart phone lovers will have to get used to... NO iPhone BOGO offers. Ever!

I wonder if there was anything Verizon and Apple signed in their contract that says Verizon can't do a BOGO.

Because technically speaking, once Verizon pays for stock from Apple, the units become Verizon's property and they can sell them however they wish. Unless, of course, it's not that simple...
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post #30 of 41
Quote:
Originally Posted by solipsism View Post

AT&T only did that last year. It was the first sign that AT&T was going to lose their exclusivity with a year as the move locked people into new 2 year contracts, and with higher ETFs. They took a smaller loss then to prevent a larger loss this year. I dont think theyll be doing it again.

AT&T has always had a tiered upgrade eligibility program based on revenue. Users with >$75 monthly charges were eligible to upgrade sooner than those with lower monthly bills. What you're referring to is the concession they made to allow current users who had contracts expiring in 2010 to upgrade to the iPhone 4 early at the full discount.

Also, AT&T allows you to upgrade your iPhone once in the first 18 months at an "early upgrade" price of $399/499 if you're not eligible for the full discounted pricing. VZW will not be doing this either, as I understand it.

Quote:
Originally Posted by AsianBob View Post

I wonder if there was anything Verizon and Apple signed in their contract that says Verizon can't do a BOGO.

Because technically speaking, once Verizon pays for stock from Apple, the units become Verizon's property and they can sell them however they wish. Unless, of course, it's not that simple...

VZW probably won't be doing BOGO's simply due to fact that it would be prohibitively expensive in equipment subsidies. Other than that, I would suspect that Apple has some type of price protection built in to their agreement like they do on most of their products with most of their partners.
post #31 of 41
And it begins. Enjoy the utter stupidity of bureaucrats from yet another wireless company.

They'll be sitting around scratching their heads in 2 months wondering why initial demand wasn't as high as they thought it would be. "What do you mean people weren't willing to pay $400 for an Verizon iPhone!...I thought this was supposed to be the golden calf?"
post #32 of 41
VZW confirmed on the phone that both of our current phone contracts are 2 years old or more so both are eligible for New In Two, which will be $50 off each iPhone. Nice. That should help pay for new cases....and new car audio solutions....and having to finally pony up and buy a retail install version of Leopard, since we still run a G4 at work that will need to sync with the new iPhones, and Leopard is required for iTunes 10 which is required for iPhone 4. (It looks like $139 is the best I can do for that on eBay, unless there is another solution, anyone?)
post #33 of 41
Quote:
Originally Posted by dougw View Post

VZW confirmed on the phone that both of our current phone contracts are 2 years old or more so both are eligible for New In Two, which will be $50 off each iPhone. Nice. That should help pay for new cases....and new car audio solutions....and having to finally pony up and buy a retail install version of Leopard, since we still run a G4 at work that will need to sync with the new iPhones, and Leopard is required for iTunes 10 which is required for iPhone 4. (It looks like $139 is the best I can do for that on eBay, unless there is another solution, anyone?)

Betcha no discount come pre-order day.
post #34 of 41
if you read the article, it sounds like they are still going to have some upgrade discount. doesn't specify what it is.

and it seems to me like all new every two ever got me was the "new plan" promotional price anyway, not cheaper than what a new customer would pay.
post #35 of 41
Quote:
Originally Posted by renfield33 View Post

if you read the article, it sounds like they are still going to have some upgrade discount. doesn't specify what it is.

and it seems to me like all new every two ever got me was the "new plan" promotional price anyway, not cheaper than what a new customer would pay.

Exactly, I was wondering the same thing.
post #36 of 41
I'm currently in month 14 of my contract, and am currently eligible for promotional pricing purchase, but definitely not NE2. I'm just wondering what I'll have to pay for the iPhone. If its $600 I'll be waiting.
post #37 of 41
So, at first I didn't understand the article, but I think I now do.

All that NE2 is, is a rebate? Up to 100 dollars, right?

Ok, What is the retail price of a 16 gig iPhone (without a contract)?

Isn't it like 599?

Verizon will still offer a discounted price from the retail price, because they make up the difference up with the plans over the 2 years?

Right?
post #38 of 41
The NE2 is an ADDITIONAL discount on TOP of the one you get for signing a contract. To qualify for a Ne2, your VOICE plan must be above 34.99 (not including data, or features)

For example, the iPhone is 199 for a 2 year new customer/upgrade price. A NE2 could potentially bring that price down to $99 (if they had a really old credit) but more than likely $149. The ONLY thing going away here is that credit. Customers can still get the 199 pricing.

Annual upgrades are a different animal entirely. This was a special promotion that only certain lines (phones with VOICE plans 49.99 or higher) qualified for. If you had it, you could get 2yr pricing on a new phone every 12months. This means 199.

What ATT had was an extra 100-200 dollars to upgrade early. This is VERY different. For all we know, Verizon might actually offer this program, we don't know yet. All we know is that the steep 12 month discount is going away.

If you currently have a NE2 or annual upgrade, you can use it ONE MORE TIME. When you upgrade again, you'll have the 20 month upgrade path just like secondary and basic lines have always had.

you STILL have the option of signing up with verizon with ANY phone on a one year contract if you want. You pay more up front (currently $70, iphone could be more) but you get a discount every 10 months instead of 20.

I can understand why apple insider got this wrong, but it amazes me that EVERY single tech site out there doesn't understand carrier contracts, at all.
post #39 of 41
Quote:
Originally Posted by j_lavasser View Post

For people who have already upgraded with their old contact which included "New Every Two", after the 16th, people will have to pay the retail price for they're upgrades?

Quote:
Originally Posted by malax View Post

What am I missing? Question number 6 on the Verizon iPhone FAQ seems pretty reassuring:

"Will existing customers be able to redeem their New Every Two credit?

Yes, existing customers will be able to take advantage of their New Every Two credit if eligible, and use it towards the purchase of iPhone (may not be available at all agent locations)."

Just for the record, when I did my first "New Every Two" some years back the credit was $200 - and I only found it had dropped to $100 when I went to get my next phone.

So Verizon is very "flexible" about what they "do for you."

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post #40 of 41
Quote:
Originally Posted by MOEW View Post

That's all really funny. As a VZ subscriber, I tried to do the pre-launch info on the email that was sent. I'm 1 year or less into my VZ contract.

I'm eligible for an iphone, but there's a $20 early upgrade charge. I'm ok with that. The main reason is that I don't want an iphone that does less than what my current phone does.

Also, just to add, we get full VZ speeds here in my area. ATT, at best, gets only 700k maximum. It's probably an ATT capacity issue, and they surely could learn about capacity from VZ.

Couple that with driving 10 mins out of the city, and ATT is on EDGE... 10 mins out of the city... nobody can stand edge unless it's a last resort if you are lost... oh wait the iphone doesn't have built-in-navigation.... hmmmm.

The iphone 4 has built in GPS. so it doesnt depend on cell towers. You should research the products before making comments
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