Sprint Corp. said Monday that they are getting rid of their two year contracts and will be shifting to a policy where customers can lease their smartphones.
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The new iPhone Forever offer is available on each and any eligible rate plan from Sprint, and customers will always get the upgrade eligibility included in their plans. When that happens, Sprint customers will have two options for buying a phone: on lease or at full price. Eventually, the price will be shifted back to $22 once the customer upgrades to the first new iPhone in 2016. The website also says that if the subscriber is stuck in a contract with another carrier Sprint will pay off the old phone and contract so one can switch easily. (By locking customers into long-terms contracts that didn’t allow for upgrades, the previous model enabled Sprint to offer phones at no cost). To qualify for the upgrade, customers must trade in their current device and it must still work. There’s no finance fees and the phone will be completely yours once you are done paying it. Carriers are offering more and more plans under which consumers pay for their devices and plans separately, following the lead of T-Mobile. AT&T Inc.is the only major U.S. carrier that still offers to subsidize new smartphone purchases.
The stock went up 7.79% on August 13 when Sprint earned an investment of $87 million from SoftBank Group, Sprint’s majority shareholder. Earlier this month, Sprint also launched a few new services which could be attributed to the surge in stock price.
The marketability of the scheme is clear: This is a feasible way for current and potential Sprint customers to ensure they never have to feel inadequate or embarrassed by owning a previous-generation iPhone.
New and existing customers will only pay $15 month if they trade in their phones and sign on to iPhone Forever before December. 31.
The iPhone Forever plan, which will cost $22 per month after January 1, 2016, comes with an introductory rate of $15 for a 16-Gb iPhone 6, with a trade-in for the consumer’s old phone.
Sprint is introducing the program just as Apple is rumored to be unveiling its next iPhone next month.
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The deal requires you to be on an individual Unlimited Plan, or a Family Share Pack Plan.
