Most of the smartphone user in the united states buy their phone under the subsidy program where the carrier bears the cost of the entire handset and the user has to pay a monthly fee of about $30 for wireless services. After completing the prefixed number of payments, you will be eligible to unlock the phone. Over the years, many carriers have ditched this subsidy scheme and introduced a leasing program in its place.
Apple sells iPhone in tunes of millions. It had to do something when the carriers have removed the subsidy program. Not everyone can shell out $650 to$950 for an iPhone.
So Apple introduced the phone upgrade program where you pay for an iPhone in easy 24 monthly instalments. after paying for 12 instalments, you would be eligible to exchange the existing phone for a new iPhone that is available at that time. Now Samsung has similar plans for its own smartphones.
Samsung, in particular is having a hard time selling its phones to the consumers. And it knows that it does not command iPhone level craze among the smartphone users. for this exact purpose, even Samsung is introducing the phone upgrade program to move the inventory faster.
This phone upgrade program is speculated to launch alongside the galaxy s7. You will now be able to exchange your phone for a new and shine galaxy s8 or the note 7 when they launch and if you have completed 12 number of payment cycle.
This is Samsung way to lock in the consumer in its own eco system similar to how apple lock a user into the iOS and OS X eco system. If you take up this phone upgrade program, you will have to buy a new Samsung phone when it comes out and there could be no way that Samsung will allow you to buy a HTC one in its own program.
Stay tuned.
