📱 2022-09-11 11:07:00 – Paris/France.
The three major US carriers have announced agreements allowing eligible customers to get the latest smartphone Apple, under certain conditions, which often include the exchange of an old model iPhone. AT&T and T-Mobile, for example, are both offering up to $1 in credits, after trade-in, for the purchase of the iPhone 000 or iPhone 14 Pro. Verizon is offering up to $14 in trade-in credit for the iPhone 800 or iPhone 14 Pro, according to some of the deals Apple has collected and touted.
While Apple managed to keep the base price of the latest iPhone the same as the previous generation, the iPhone 14 still starts at $799 and $899 for the 14 Plus model. Meanwhile, the top-end 14 Pro model starts at $999 and the 14 Pro Max at $1. At a time when inflation is pinching consumers on all sides, carrier deals can help make the latest iPhone more affordable.
According to Tom Forte, senior research analyst at DA Davidson, wireless carriers that have built extensive 5G infrastructure can also offer these steep discounts when seeking customers to upgrade to 5G-enabled devices. "They've invested billions of dollars in their own 5G networks and they're trying to get a return on their investment," Forte told CNN Business.
The iPhone has been able to use 5G networks since the iPhone 12, released in 2020.
"The other reason, though, I think they're able to do is that iPhones historically hold their values," he added, noting that many offers include the exchange of a old model of iPhone to benefit from the discounts or freebies of the latest devices. Many of these carriers then sell used and refurbished iPhones.
The latest iPhone 14 lineup, at least in the US, has also ditched the SIM tray and is all eSIM. By doing this, Apple is "essentially making the service switch easier for consumers," Forte said. “This could be another reason why carriers are more aggressive, or at least as aggressive as they have been since the 12th, in getting consumers to sign up. »
Still, it's important to read the fine print, as these agreements often come in the form of contracts, a common practice since cell phones became ubiquitous. Forte noted that if you were to take advantage of some of those iPhone 14 promotions but then tried to cancel service after a month or two, you'd likely be liable for "significantly more than the purchase price" of the new phone.
According to Julie Ask, vice president and principal analyst at Forrester, Apple and carriers could also benefit from the growing popularity of buy-it-now, pay-later plans among consumers in recent years. So more people looking for options to pay for a new iPhone over time might be particularly drawn to carrier deals that end up including discounts on the device and cellular plans, even if they include a longer commitment.
“There has been a slight increase in consumers' willingness and interest to pay over time,” she told CNN Business. Still, she said carriers often look to "lock people up for at least two years, so that's the fine print I would be looking for."
SOURCE: Reviews News
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