Analyst: New Apple iPhone sales could benefit from carriers' early upgrade plans

Analyst: New Apple iPhone sales could benefit from carriers' early upgrade plans
Analyst Chris Cano of Susquehanna told clients in a note disseminated on Wednesday, that the next iteration of the Apple iPhone should benefit from new early upgrade plans offered by the major U.S.carriers. Plans like AT&T Next, Verizon Edge and T-Mobile's Jump! allow customers of these carriers to upgrade before the 24 months waiting period required in the standard contracts signed by Verizon, Sprint and AT&T customers who purchase subsidized phones.

Since the new plans can allow for earlier upgrades, demand for the new iPhone on the weekend of the launch could be even stronger than usual. Cano figures that these early upgrade plans are costing consumers only $2 to $10 a month, which most would find more than worth it in order to score a hot new phone before 24 months has expired.

And since many of these new plans don't require a down payment, consumers might not have to lay out any money to make an iPhone purchase. With the balance due in monthly installments spread out over as long as 30 months, the analyst says that Apple could raise prices and it would hurt less this way. Cano uses AT&T's 30 month payment plan as an example, which would mean that a $50 hike in the price of the iPhone could end up costing a buyer just $1.67 more each month. The analyst says that no smartphone buyer would give an increase of that size a second thought.


The latest rumor has Apple launching a 4.7 inch Apple iPhone 6 in August with a larger screened 5.5 inch version coming to market the very next month.

source: Marketwatch via NYPost

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12 Comments

1. PapaSmurf

Posts: 10457; Member since: May 14, 2012

This is basically a given. Why is PA even posting this?

2. Sauce unregistered

Cucumbers

4. PapaSmurf

Posts: 10457; Member since: May 14, 2012

I had cucumbers on my sandwich from Subway today for lunch.

5. 0xFFFF

Posts: 3806; Member since: Apr 16, 2014

I had cucumbers with my Japanese girlfriend for lunch today.

6. anirudhshirsat97

Posts: 408; Member since: May 24, 2011

I wish I had a cucumber.

12. imnotbrunomars

Posts: 1; Member since: May 15, 2014

I am a cucumber

3. 0xFFFF

Posts: 3806; Member since: Apr 16, 2014

Apple is lining up their ducks. They want every potential iPhone buyer to have in their minds some answer to "how can I afford this?". Even if that means people shifting to a higher ream factor "early hardware upgrade plan". As Apple has done less of this sort of thing in the past -- prime the press with every little detail -- it may mean Apple is more worried than usual about driving demand. Reminding customers that they can upgrade their phones is another sign of being worried about demand generation.

7. KillerKeyboard

Posts: 372; Member since: Nov 21, 2013

I can be an analyst, too.

8. 0xFFFF

Posts: 3806; Member since: Apr 16, 2014

Some of us really enjoy the nice beaches in Costa Rica and writing an hour a day for a living.

9. PressStart

Posts: 119; Member since: Apr 08, 2014

douche much?

10. 0xFFFF

Posts: 3806; Member since: Apr 16, 2014

Have anything to say that isn't trite, much?

11. Mr2KiEu

Posts: 4; Member since: May 15, 2014

AT&T doesn't have a 30 month plan on Next. It's 12 month trade in and 20 month keep or 18 month trade in or 26 month keep.

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