Apple is leaving no stone unturned in luring customers. Keeping in mind that cost is a huge factor that dissuades smartphone users from upgrading to a new iPhone every year, the smartphone giant has come up with a new offer that makes buying an iPhone easier.
Tim Cook, Apple CEO, unveiled the all-new iPhone Upgrade Program three weeks ago. Users can now acquire an iPhone directly through Apple. On paying an additional cost, they can unlock the smartphone, enabling them to use the device with a mobile carrier of their choice. What's more! Apple has also thrown in the AppleCare+ iPhone protection program. The most alluring part of the iPhone Upgrade Program is that it allows users to upgrade their smartphone each year.
The iPhone Upgrade Program comes with a subscription amount of $32.41 per month for the 16 GB model, which also gives users the option to upgrade their iPhone to the latest model every year. The amount goes up to $40.75 per month for the 128 GB model and between $36.58 and $44.91 for iPhone 6s Plus.
This new development is being seen as a clever move by Apple to sell more iPhones every year. AppAdvice also notes that devices bought through the program will be unlocked but must be activated on AT&T, Sprint, T-Mobile or Verizon.
T-Mobile has already started a trend to conceptualise the Apple iPhone Upgrade Program. Instead of paying $200 upfront and being locked into a 2-year contract, users can now opt to pay the $200 over the course of 2 years.
So how are iPhone users reacting to the iPhone Upgrade Program? Pretty well! Fortune reported that a recent survey of 6,400 Apple customers revealed that about 20% said they would definitely opt for the new program. The website also goes on to list the benefits of the iPhone Upgrade Program, which include:
- Commits customers into buying a new iPhone every year
- Sells more high-margin AppleCare+ contracts
- Halves the iPhone upgrade cycle (to 12 months from 24)
- Builds an inventory of used phones that can be refurbished and resold
- Unbundles hardware costs from carrier cost
- Incentivizes carriers to sweeten their iPhone deals
- Raises the iPhone's gross margin, per an earlier RBC calculation, from 50% to 55%
Please note that it is not mandatory for users opting for the program to get a new iPhone every 12 months. It is only an easier way for customers to get their hands on an unlocked iPhone without paying a hefty price for the device. The new program is limited to US customers and available with the purchase of iPhone 6S and iPhone 6S Plus. You can make your reservations for the new iPhones from Apple's official website.
