It may not be the end of the traditional two-year mobile phone contract, but two major carriers in the United States are trying to wean consumers away from the usual subsidy pricing.
According to 9to5Mac, AT&T is now only allowing Apple to sell iPhones at its retail stores and online site with the carrier’s Next pricing structure. Instead of receiving a subsidized price for their iPhone, users will purchase the handset at full price.
Under the Next program, buyers can then pay off the iPhone with a set amount of payments for 20, 24, or 30 monthly installments. Users can upgrade at a certain timeframe, depending on the installment plan they selected.
Two-year subsidies will be available for business purchases through Apple.
The site also says that Verizon is planning to end two-year contract subsidies through Apple “as soon as the end of the summer.”
A separate report from the site said that Apple is thankfully increasing its trade in values for certain iPhones in the Reuse and Recycle program for the month of June. Here are the values for this month only:
– iPhone 4S: $50 of credit instead of $35
– iPhone 5: $100 of credit instead of $85
– iPhone 5S: $200 of credit instead of $175
You’ll receive a gift card that can be used to purchase a new handset.
I’m not surprised to see the two biggest carriers in the United States try to shift consumers to the more profitable installment plans. I’ll be holding onto my usual two-year contract at Verizon for as long as I can.
For other news today, see: Report: Apple’s new streaming music service will indeed be unveiled at WWDC next week, A number of Apple Watch bands are now available to ship within a week, Microsoft reportedly purchases Wunderlist developer 6 Wunderkinder.