Verizon dropping early upgrades, discounts ahead of iPhone launch
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."
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."
Comments
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.
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 don?t think they?ll be doing it again.
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.
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.
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 don?t think they?ll be doing it again.
I've done it every single year except the initial iPhone.
I've done it every single year except the initial iPhone.
Then perhaps I?m mistaken, but I was only able to do it last year.
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.
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.
"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)."
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.
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.
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?
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.
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.
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?
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.