In-wake of the sluggish sales of its galaxy range of smartphone, Samsung wants to start a phone leasing program that will enable the consumer to get the new galaxy s6 and note 5 for a fraction of the total device price.to be honest, the move from Samsung isn’t one of its innovation. It the marketing strategy from apple that Samsung wants to copy.
Apple has recently started the new iPhone upgrade program that the consumer can choose. You can get the new iPhone for about $32. The total cost will be spread out over two years or 24 months. The iPhone upgrade program also has the apple care+ that allows you to replace the broken screen or damaged phone free of cost. After paying 12 instalments, you become eligible for the new iPhone that will be available at that time. The counter resets and you will have to pay 24 instalments again. It is basically like renting an iPhone for $32 a month and you get a new iPhone when it releases.
This move from apple and Samsung come in wake of the cancellation of contract phones from the carriers. They are moving away from the contract system that provide subsidised phones to the consumer at a monthly fee. An insider of Samsung has stated to Forbes that Samsung want to increase the sales of its smartphone that have been disappointing. Carriers aren’t ready to bear the cost of the entire device and offer it on subsidy. The best way to get most of the consumers onto its latest phone is the phone leasing program that will offer new phone for a monthly fee and a new phone upgrade ability when it releases.
“For years, smartphone hardware was subsidized by big wireless carriers in the U.S. that locked customers into two-year contracts. Now, the carriers have been moving away from that, forcing many customers to buy their own hardware. The lack of subsidies threatens sales for high-end phones like the Apple’s iPhone and Samsung’s Galaxy series. Hence the phone leasing programs makes sense “Forbes stated.
https://www.youtube.com/watch?v=lI-dKkloHsk
