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  • Early Upgrade Programs in the US to Help Grow Sales of Apple's iPhone


    An analyst has projected that Apple will most likely see gains in iPhone sales in the medium term due to early smartphone upgrade programs from a few major U.S. wireless carriers. BMO Capital Markets, Keith Bachman, issued a note to investors recently on closer looks to early upgrade programs being offered by Verizon Edge and AT&T Next. Both allow customers to upgrade their phones more than once every two years by having monthly installment payments. These programs are good for subscribers wanting to upgrade to new devices every year and Bachman predicts that the plans could represent more than 20% of users by the end of 2014.

    If what Bachman believes is true, it could net Apple an extra 5 million iPhone sales in economic year 2014. Bachman thinks that Apple will generate approximately $3.7 billion in revenue with an average selling price of $730 from early adopters. He also believes that these programs are ‘modest positives’ for Apple. AT&T has indicated that 15% of their smartphone customers have already changed over to the Next program as of December 2013 and as much as 25% of other smartphone customers will be on the Verizon Edge and AT&T Next programs by the end of this year.

    With quicker smartphone turnover purchases, the programs will also result in more refurbished iPhone availability. Bachman has said that these devices will most likely be sold overseas.

    Source: BMO Capital Markets via AppleInsider
    This article was originally published in forum thread: Early Upgrade Programs in the US to Help Grow Sales of Apple's iPhone started by Akshay Masand View original post
    Comments 3 Comments
    1. gldoorii's Avatar
      gldoorii -
      iPhone 5S 16 GB is $199 with a 2 year contract and you have a higher resale value when you sell it which will essentially pay for your next phone (eBay sold has them around $450 on average). With Next that same phone is $32.50 a month and after 12 months you have paid $390 to use the phone and you have to trade it in... You've paid $190 extra because you wanted to TRADE that phone in one year early. And if you decide that after two years you want to keep the phone...you've paid $780 for a phone that costs $650 retail lol. Do people really fall for these crap plans?

      Sorry, but having the peace of mind that after two years I can sell my current phone, pay for my next phone with that money, and MAKE money is well worth it. I have literally not paid for an iPhone since the first model.
    1. Evaded's Avatar
      Evaded -
      The only way Next works is if you're a new customer and you do the 18mo program ($25). If you look at the cost in a 2 year time frame Next is less expensive, but you must keep the phone for 26mo. I've sat and done the math numerous times trying to figure this all out and that's the only way Next makes sense. In 2 years time you save $236.
    1. Donnutt's Avatar
      Donnutt -
      Quote Originally Posted by gldoorii View Post
      Sorry, but having the peace of mind that after two years I can sell my current phone, pay for my next phone with that money, and MAKE money is well worth it. I have literally not paid for an iPhone since the first model.
      I completely agree with you. However, a lot of people I know trash their phones all the time and that $1000 pocket computer doesn't last six months. Than they complain about not being able to by a new one at contract price...
      I'm on my 5, looking forward to the 6 next winter!
      Oh, wait, I bet there's still people that think it will be called iPhone 8....