ZDNet:
Apple has a new iPhone Upgrade Program that’s worth the look. And it may be even more disruptive than the technologies found in the company’s next iPhones.
At this point, all of the four major U.S. carriers have installment plans available for handsets. Enter the iPhone Upgrade Program.
It’s very similar to what the carriers offer today but it might actually be a bit cheaper.
This has the potential to not only save the average consumer a little bit of money but also to undercut (and possibly upset) the traditional carriers. It will have the added benefit of getting the iPhone into many more hands, not just in the US but around the world.
Once a provider is chosen, let’s say six months down the road you want to switch. Will it just be a matter of choosing again or, at worst, getting a new sim from Apple and switching? That would definitely be a disruptive thing…
The free included AppleCare is interesting, mathematically, if you’re upgrading every 12 mos.
This has the potential to drive up Apple’s ASP yet again
When the carriers were subsidizing the phone, doubling your storage meant going from $199 to $299. In reality, you’ve doubled your storage by going from $750 to $850, but with the carrier subsidization, it looks like a 50% increase.
Now, for a couple more bucks a month, you’re going from 16GB to 64GB. Got to think a lot more people will choose the more expensive phone with this pricing.
It just might be a pretty good deal because the Update Program includes AppleCare+ coverage. I always get AppleCare+ along with my iPhone every 2 years anyway. So for me, the total cost of ownership might be lower.
The downside is that I’d lose my unlimited data plan with AT&T. They try to sucker you into new plans and deals to get you off unlimited data. Of course, I could keep my old iPhone 6 and its unlimited data and get a second iPhone under the Update Program. I don’t think that cancels the old iPhone’s unlimited data.
Look at your historic data use and then at the various plans. Unlimited sounds nice but if you only use, say, 2gig then you might be restricting yourself from change for no good reason.
A new 64 GB 6s is $749 outright. Plus $99 for Applecare+. So $858 total. On this plan, it is $37 per month, times 24 months, comes out to $888. So it is actually quite comparable. Now if you plan on upgrading every year, then this is effectively a lease because you have to give your phone back. But after the 24 months, it is paid off and yours.
The choice comes in as to whether this is worth it to you, to have the latest but never own the phone, or use it as a means of buying a phone on an installment plan every two years. At least if the new model really wows you, you would have the choice now!
This is interesting indeed. But, at some point, carriers are going to strike back at Apple. How? When?
Can’t wait for this to reach Canada. I’m not sure I can put off upgrading to the iPhone 6s (peek and pop are going to be requirements, so I think developers like me NEED this upgrade), but hopefully next time.
This was surprisingly good news from yesterday. I thought it was one of their top announcements as well, iPad Pro and Apple TV being tops above it.
Very smart.
I applaud anything that disintermediates big carriers.
yup. thats why i switched to a plan w/ tethering included (sigh), since that offered more actual value to me than the possibility of unlimited data usage (rarely needed it).
poison?
Legislation.