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Apple Upgrade Program Seen Driving Demand for New iPhones

iPhone ‘subscription’ is Apple’s most diabolical business plan yet

Apple has just made buying a new iPhone every year more affordable – a move that analysts said will drive demand from now on, starting with the new iPhone 6S and 6S Plus. Apple announced a program on Wednesday that will allow users to finance unlocked versions of the new iPhones through monthly installments starting at $32, regardless of carrier. Until now, customers could only lease subsidized phones on two-year contracts requiring an up-front payment. The deal for iPhone owners, which will initially apply to the United States and 11 other key markets including China, emerged as one of the most positive announcements at Apple’s annual launch event.

Who loves iPhones? Who loves new iPhones? Who wants to have the latest and greatest iPhone in their hands every time an Apple iPhone launch event comes around? And who can afford $32 a month?

If your answer to all the above questions is “everyone, duh,” congratulations: You understand the tremendous economic viability of Apple’s new “upgrade plan.” This is a relatively inoffensive name for what might as well be called an iPhone subscription service — or a way for Apple to more efficiently hoover money out of your wallet.

Do the math, and it’s not hard to see why switching iPhone users to a subscription is a diabolically brilliant business plan. Let’s say that, like me, you’re on the “S” cycle and were planning to buy an iPhone 6S while re-upping your two-year carrier contract. That would set me back $199 to $399, depending on how much storage I want onboard.

That’s the equivalent of giving Apple somewhere between $8.30 and $16.63 a month for the next 24 months. Not nearly enough for the world’s wealthiest company! You think that stock price is going to keep levitating higher if you don’t put more cash in the Apple bank?

But now here comes an Apple Store employee telling me I don’t have to limit myself to the every-other-year carrier cycle.

I can participate in every iPhone upgrade, without the worry of having to think about it. What’s the cost? Less than a basic cable subscription.

source : mashable.com

 

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