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Samsung looking to implement leasing program

Oh Samsung...copying everything Apple does. Actually, I don't mind them copying this particular idea. It's interesting that these companies are taking some control away from carriers.
 
Does this really hurt carriers though? My understanding at least with the iPhone is that very little money is made on the hardware side. I'm pretty sure Apple charges full retail price to the carriers for each handset sold right? I'm not sure what Samsung charges per handset but it probably isn't cheap.

So what are they really losing by users getting their hardware directly from the manufacturer? They are losing having to process warranty claims, people bricking their phones, dropping them in the toilet, etc.

As long as the carriers are getting their $100 monthly fee I don't think they care one bit where people are actually getting the hardware. They only thing that will topple the carriers is a real pay as you go plan with proper service (roaming etc.).
 
DaveStall said:
Does this really hurt carriers though? My understanding at least with the iPhone is that very little money is made on the hardware side. I'm pretty sure Apple charges full retail price to the carriers for each handset sold right? I'm not sure what Samsung charges per handset but it probably isn't cheap.

So what are they really losing by users getting their hardware directly from the manufacturer? They are losing having to process warranty claims, people bricking their phones, dropping them in the toilet, etc.

As long as the carriers are getting their $100 monthly fee I don't think they care one bit where people are actually getting the hardware. They only thing that will topple the carriers is a real pay as you go plan with proper service (roaming etc.).
Click to expand...

It makes it easier to switch between carriers. Carrier plans appear to be the same or cheaper than Apple's plan, but if I stick with a carrier I have to deal with the hassle of paying off or returning the phone before I can switch.
 
DaveStall said:
Does this really hurt carriers though? My understanding at least with the iPhone is that very little money is made on the hardware side. I'm pretty sure Apple charges full retail price to the carriers for each handset sold right? I'm not sure what Samsung charges per handset but it probably isn't cheap.

So what are they really losing by users getting their hardware directly from the manufacturer? They are losing having to process warranty claims, people bricking their phones, dropping them in the toilet, etc.

As long as the carriers are getting their $100 monthly fee I don't think they care one bit where people are actually getting the hardware. They only thing that will topple the carriers is a real pay as you go plan with proper service (roaming etc.).
Click to expand...

Well, I was able to pre-order a 64GB 6S through T-Mobile for $125 less than what Apple is charging. Maybe Apple's leasing program pushed T-Mobile to undercut them in the hopes that customers would go to T-Mobile for the phone and not Apple.
 
deathBOB said:
It makes it easier to switch between carriers. Carrier plans appear to be the same or cheaper than Apple's plan, but if I stick with a carrier I have to deal with the hassle of paying off or returning the phone before I can switch.
Click to expand...

Yeah, that's a good point. It does give the customer more options when it comes to shopping plans.
 
DaveStall said:
Does this really hurt carriers though? My understanding at least with the iPhone is that very little money is made on the hardware side. I'm pretty sure Apple charges full retail price to the carriers for each handset sold right? I'm not sure what Samsung charges per handset but it probably isn't cheap.

So what are they really losing by users getting their hardware directly from the manufacturer? They are losing having to process warranty claims, people bricking their phones, dropping them in the toilet, etc.

As long as the carriers are getting their $100 monthly fee I don't think they care one bit where people are actually getting the hardware. They only thing that will topple the carriers is a real pay as you go plan with proper service (roaming etc.).
Click to expand...

As already mentioned, we won't have to wait till a contract expires/pay huge ETF fees as a result, this will make the carriers more competitive, and bring the prices down for our cell service in the long run.
 
Red Storm said:
Well, I was able to pre-order a 64GB 6S through T-Mobile for $125 less than what Apple is charging. Maybe Apple's leasing program pushed T-Mobile to undercut them in the hopes that customers would go to T-Mobile for the phone and not Apple.
Click to expand...

Just out of curiosity, what type of commitment did you have to give T-Mobile to get the phone? Is that a standard two year contract then?

I guess I hadn't thought about the carriers actually trying to compete with Apple / Samsung on hardware pricing. If this turns out to be a normal thing it will be good for the consumer in the end, which seems to be a rare thing in the cellular world.
 
DaveStall said:
Just out of curiosity, what type of commitment did you have to give T-Mobile to get the phone? Is that a standard two year contract then?

I guess I hadn't thought about the carriers actually trying to compete with Apple / Samsung on hardware pricing, but if this turns out to be a normal thing it will be good for the consumer in the end, which seems to be a rare thing in the cellular world.
Click to expand...

The JOD (jump on demand) is a lease, 18 months, they're counting on you staying with them through the term of the lease or upgrading before the end of the lease. But you're only paying retail prices for the hardware if you terminate the lease early. A bunch of people got in on a $15/month plan for the iP6, and are now upgrading to the 6s for $15/month, it's a pretty good deal.

They have JOD configured so you end up paying retail prices and credit you back a few dollars every month to get the $125 or so off retail.
 
Artdeco said:
The JOD (jump on demand) is a lease, 18 months, they're counting on you staying with them through the term of the lease or upgrading before the end of the lease. But you're only paying retail prices for the hardware if you terminate the lease early. A bunch of people got in on a $15/month plan for the iP6, and are now upgrading to the 6s for $15/month, it's a pretty good deal.

They have JOD configured so you end up paying retail prices and credit you back a few dollars every month to get the $125 or so off retail.
Click to expand...

It's more than 125. you're getting over 200+ back in credits for the 18 month term.
They also had the free memory upgrade during the release weekend.

I got 5 x 16gb iphone 6 at $15 a month. then got all the lines upgraded to 64gb at the same 15bucks per month for 18 months.

2 x me and wife
2 x bro and wife
1 x mom
 
isekii said:
It's more than 125. you're getting over 200+ back in credits for the 18 month term.
They also had the free memory upgrade during the release weekend.

I got 5 x 16gb iphone 6 at $15 a month. then got all the lines upgraded to 64gb at the same 15bucks per month for 18 months.

2 x me and wife
2 x bro and wife
1 x mom
Click to expand...

LOL, kick ass 🙂 I just got 2 (and didn't get the deal you did, dammit), charged yesterday, living in the middle of no where, will be impressed if they get them to me by the 25th.
 
DaveStall said:
Just out of curiosity, what type of commitment did you have to give T-Mobile to get the phone? Is that a standard two year contract then?

I guess I hadn't thought about the carriers actually trying to compete with Apple / Samsung on hardware pricing. If this turns out to be a normal thing it will be good for the consumer in the end, which seems to be a rare thing in the cellular world.
Click to expand...

I believe he did the Costco deal for $125 + accessory pack on T-Mobile. I did the same deal as well. No contract, just an EIP plan on the phone that you can pay off whenever you want.
 
Artdeco said:
LOL, kick ass 🙂 I just got 2 (and didn't get the deal you did, dammit), charged yesterday, living in the middle of no where, will be impressed if they get them to me by the 25th.
Click to expand...

Did you get your tracking info yet? I got my tracking info yesterday and it should be free overnight saver shipping.

The free memory upgrade wasn't advertised.. I found out through reddit//tmonews 😵
I was totally surprised when it was avail
 
isekii said:
Did you get your tracking info yet? I got my tracking info yesterday and it should be free overnight saver shipping.

The free memory upgrade wasn't advertised.. I found out through reddit//tmonews 😵
I was totally surprised when it was avail
Click to expand...

Yep, tracking showed up today.

I ordered a 128GB 6s+ and 6s, wish I'd known about the memory upgrade, but such is life, happy to get the discount I did
 
Red Storm said:
Well, I was able to pre-order a 64GB 6S through T-Mobile for $125 less than what Apple is charging. Maybe Apple's leasing program pushed T-Mobile to undercut them in the hopes that customers would go to T-Mobile for the phone and not Apple.
Click to expand...

VZW had the best deal this time around. $100 port in credit plus $200 min for a working smartphone (There are ones that work for like $20 at BB if you don't have an old one.) I traded in a samsung epic (S1 era) for $200. If you do it at the store instant credit. Online it takes 2-3 billing cycles. No contract, no having to stick with them for the discount and VZW phones are unlocked. Currently iphones will run on any of the major 4 too. Switch to tmobile afterward if that's your preferred carrier.
 
Dont forget T-Mobile now has the option to finance the phone through them, cancel service and unlock your phone, but still pay monthly on it.
 
Most smartphone are already de facto leases. They're only useful for 1-3 years yet they can potentially last for a decade or more. No one is going to be using a 2015 smartphone in 2025 even though most of them will probably still be functional in 2025.
 
sm625 said:
Most smartphone are already de facto leases. They're only useful for 1-3 years yet they can potentially last for a decade or more.
Click to expand...

There is someone out there in the wide world of mobile that was very excited their 4GS is getting iOS 9. The iPad 2 is looking like a five year mobile device as well.

I bet the iPad Air 2 will get five years of updates, as will the iPhone 6s. At some point the battery and the solid state storage is what does the device in.
 
What does this do to the cellphone insurance industry? I only wonder because I have a relative in the industry making big bucks as a risk analyst - is the writing on the wall, and the industry moving away from the carriers and to the actual manufacturers?
 
slackerinabox said:
What does this do to the cellphone insurance industry? I only wonder because I have a relative in the industry making big bucks as a risk analyst - is the writing on the wall, and the industry moving away from the carriers and to the actual manufacturers?
Click to expand...

Funny you should ask that, I was just going to post something similar. You have to think phone insurance is a major money maker for the carriers right now.

It will be interesting to see what the response from companies like Verizon is. I have to think the biggest threat to them is losing those two year contracts. I wonder if they will start to offer real incentives for signing on to a long term contract. They could, for example, offer a couple of extra gigs of data per month for contract holders. If the "phone companies as direct hardware suppliers" starts to take off things could get interesting. Will we see companies like Verizon offering competitive monthly plans?
 
sm625 said:
Most smartphone are already de facto leases. They're only useful for 1-3 years yet they can potentially last for a decade or more. No one is going to be using a 2015 smartphone in 2025 even though most of them will probably still be functional in 2025.
Click to expand...

I bet there will be. I dont see much evolution happening for quite some time.
 
The carriers would love it if they didn't deal with the hardware at all. The amount of money they spend on warranty, technical support, etc almost certainly out weighs what they make selling hardware. The carriers all moved away from two year agreements, and I'm sure they will try to be less involved with the hardware. They are making their money on the service they sell. That's the entire reason they subsidize phones or offer special financing deals that credit you back money over many months like T-Mobile's iPhone deal.
 
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