Verizon jumps on annual iPhone upgrade bandwagon with new trade-in offer
Following the announcement of new iPhone upgrade incentives this week, first by T-Mobile then Sprint, America's largest wireless carrier Verizon debuted its own yearly upgrade path on Thursday, saying it offers benefits over lease-type plans.
Under Verizon's stipulations, customers can upgrade to a new iPhone every year once they pay out half of a device's retail cost and trade in that unit for a new one, reports Re/code. The offer will be automatically activated as an option for anyone purchasing an iPhone 6s or 6s Plus, including preorder customers.
Instead of being introduced as a separate pricing scheme, Verizon's annual iPhone upgrade program coexists with the current 24-month financing plan. The option is more flexible than competing device lease offers, according to the company.
"If you're not interested in upgrading, you still have the option to pay your phone off in 24 low monthly payments," Verizon said. "That's a better option than those "lease plans" offered by other companies, which can include surprise balloon payments just 18 months into your agreement, or ask you to turn over your phone without getting anything for it."
T-Mobile earlier this week announced a similar iPhone trade-in promotion attached to its Jump On Demand service in which customers can nab a new iPhone 6s for as little as $5 per month. Final monthly fees are calculated based on the device traded in.
Sprint responded to T-Mobile's push on Thursday with a discounted lease plan costing only $1 per month for 16GB iPhone 6s. To get that price, however, qualifying customers must sign up for Sprint's iPhone Forever payment plan and trade in an iPhone 6. Higher monthly rates are charged for older device trade-ins which, unlike T-Mobile's promotion, are limited to iPhone.
Under Verizon's stipulations, customers can upgrade to a new iPhone every year once they pay out half of a device's retail cost and trade in that unit for a new one, reports Re/code. The offer will be automatically activated as an option for anyone purchasing an iPhone 6s or 6s Plus, including preorder customers.
Instead of being introduced as a separate pricing scheme, Verizon's annual iPhone upgrade program coexists with the current 24-month financing plan. The option is more flexible than competing device lease offers, according to the company.
"If you're not interested in upgrading, you still have the option to pay your phone off in 24 low monthly payments," Verizon said. "That's a better option than those "lease plans" offered by other companies, which can include surprise balloon payments just 18 months into your agreement, or ask you to turn over your phone without getting anything for it."
T-Mobile earlier this week announced a similar iPhone trade-in promotion attached to its Jump On Demand service in which customers can nab a new iPhone 6s for as little as $5 per month. Final monthly fees are calculated based on the device traded in.
Sprint responded to T-Mobile's push on Thursday with a discounted lease plan costing only $1 per month for 16GB iPhone 6s. To get that price, however, qualifying customers must sign up for Sprint's iPhone Forever payment plan and trade in an iPhone 6. Higher monthly rates are charged for older device trade-ins which, unlike T-Mobile's promotion, are limited to iPhone.
Comments
This time last week they told me I was unable to upgrade because I hadn't paid off 75% of my phone. But this article states paying off 50% allows upgradability. Someone know anything about this? Because when I signed up the Verizon rep specifically told me once I pay off HALF of the phone I would be able to upgrade. 'Tis very confusing.
I think I'd rather just go with the Apple Upgrade Program, which includes AC+ on a monthly rate.
Yes, they changed their options tonight.
I hadn't thought of it like you phrased it, but it does seem accurate. That leaves AT&T in the USA market to ante into the game or not.
I suppose this offer may be available to some other brands of "higher end" phones too, but it took the iPhone and Apple to get it going.
I can't imagine how primitive cell phones may still be, had Apple/Steve Jobs not had the balls to disrupt things with that first iPhone.
Google and OEM's simply need to put the carriers on notice they won't tolerate it any longer and they can simply offer their own lease options like CAR COMPANIES have done for years and years, Apple didn't invent anything and they didn't innovate either. Apple has no skin in this game, they have a credit card company backing it.
My 1 year old iPad Air 2 is worth less than 50% of what I paid for it and Apple products do not hold the value they once did, Android devices hold even less than they did put the Apple values seem to be a bigger hit.
The Apple plan is still much better. You get the phone unlock from the beginning.
It's nice to see carriers cut each others throats to keep customers, all the while Apple get the sales since the Carriers have to meet sales metrics.
Lots of nonsense in this post, where shall we begin. How about here:
They bend over for Tim Cook because doing what Tim says gives them access to, oh, 600 million of the world's richest people. When an Android OEM offers the same, they will be treated the same. In fact, one could argue Android OEMs have been treated very nicely by carriers desperate to prevent an Apple monopoly considering how low value their Android offerings are.
They are welcome to do that, some probably already do. Price has always been an Android advantage from a sales perspective, so I doubt that tweaking the financing options would spur many Android sales at this point.
A used computer that still sells for 50% of what you paid a year ago is impressive. However, we know this to be broadly true since Apple's upgrade every year financing plan is based on that assumption. I'd like you to tell me when year old computers were ever worth much more than 50%. That said, your use of the iPad Air 2 is ironic- because Apple didn't update that one this year it is going to hold value extremely well through this year.
Sure, but if you're giving it up in a year's time it's not likely an issue for the nearly anyone since they are likely to stay with the carrier for a year, and since you're not under contract the device locking is no longer an issue, not to mention all the bands supported by the variable baseboards. I think the real decision for a Verizon customer comes down to whether they purchase AC+ or not. If you do, then Apple's solution will likely be better since that's included on a per month based prorated over 24 months, as I understand it, while with the Verizon option, you'd have to pay them $10 per month for their smartphone insurance, or pay the $130(?) for the AC+ out of pocket up front, which you won't get anything back on if you trade-up in 12 months.
So true. A lot of the media were saying end of subsidized phone from telecoms was going to put the squeeze on iPhone sells, they forgot about the bank of Apple.
Hmm! Once again nothing from AT&T yet! As always, they are out there trying to squeeze more out from their customer. I am so done with AT&T. For starter, half of my family is going with the Apple iPhone upgrade plan tomorrow and second half, as soon as we are done with AT&T Next commitment. And then we will just switch over to one with the best data plan (T-Mobile is looking good) Looks like AT&T is the one who is going to miss out - Let the churn start!
Time for someone to make a comparison chart of Apple and all the carrier's plans to reveal the best deals.
I like how Apple forced the issue with all the cell phone companies. They really do not want to loose control over the customers.
It's actually T-Mobile that started all this with their aggressive JUMP lease programs, so the other carriers are actually following T-Mobile, not Apple.
Am I correct in thinking you retain the existing iPhone when the new one arrives each year with Apple's plan too? If true that's more offset when it sells, that said the cost of 1 year old second hand iPhones will drop ... mmmm... I wouldn't mine a reasonably priced used one year old iPhone 6s next year
My 1 year old iPad Air 2 is worth less than 50% of what I paid for it and Apple products do not hold the value they once did, Android devices hold even less than they did put the Apple values seem to be a bigger hit.
You must be looking at WHOLESALE pricing from Gazelle or something similar, as retail pricing, such as final selling prices on eBay, etc., are much better than 50%.
Want to hear a good one? My 2010 15" MacBook Pro is, right now, worth about 45-50% of original price... from FIVE YEARS AGO.
You have to give it back.
The value of an iPad compared to an iPhone over time are very different. The iPhone still has an advantage if you sell it each year.
Oh, OK I had read many comments going both ways on that. Good to know, darn it.
To be more clear, you don't have to give your iPhone up when the new one drops. You can still continue to pay for it on a monthly basis and use it. But if you do want the new iPhone under this upgrade program you do have to give the back.
I understood you to mean that, as opposed to you now being free to sell it. I had assumed that originally but was corrected (incorrectly) on a blog hence I asked. I think my wife and I will go for the new Apple plan and shop for the best deal from a provider and finally let go of our AT&T grandfathered in plan's limitless data. I suspect we are paying through the nose for that plan now.
I wonder what price Apple will sell the reconditioned returned phones for?