All iPhone and Galaxy BOGO-type deals disappear on US carriers, analysts have an idea why

All iPhone and Galaxy BOGO-type deals disappear on US carriers, analysts have an idea why
Back when the iPhone 7 was announced, T-Mobile started an all-out carrier war with its free BOGO offer, unleashing a pricing match that ultimately left every carrier poorer than it would be otherwise. Last year, while compiling our best deals on the new iPhone 8 preorders, we couldn't help but notice that there is barely a straight BOGO on the table. For the iPhone's 10th anniversary editions, T-Mobile bit its tongue and only gave away a bit more generous trade-in offers, plus a new iPhone upgrade program. 

This made Wall Street investors sigh with relief, and they didn't maul carrier stocks then. To a certain extent, the no-BOGO trend seemingly continues with the iPhone XS, XS Max and other flagships this year. Verizon, T-Mobile, and AT&T all started with $700 off the new iPhones, but that well has now dried up. These weren't even BOGO deals but rather a set amount that was returned to you in the form of bill credits, and even those are now inactive. According to research firm Wave7 that has been a well-thought-out strategy:


That last part is pretty important, though, as the analysts consider the iPhone XR launch to be the one that may start a real bidding war among America's largest carriers for signing up users that will be enticed by Apple's cheapest phone for the year. For now, if you want good deals on an iPhone XS or XS Max, you are out of luck, but that would reflect positively on carrier stocks if that has been your concern all along. 

Another interesting observation is that, instead of pushing BOGOs and other promos, carriers are increasingly trying to lull pre-paid subscribers into regular post-paid plans with more megabytes and extra perks, indicating one more avenue to pad the bottom line, while avoiding a promotional price war.

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7 Comments

1. Vokilam

Posts: 1369; Member since: Mar 15, 2018

I would love to hear what our "resident expert keyboard warriors" would say about this... I'm sure they're the most qualified to explain this phenomenon. They seem to know what everyone should buy.

4. lyndon420

Posts: 6878; Member since: Jul 11, 2012

Everyone is supposed to buy an iPhone... correct??

5. Finalflash

Posts: 4063; Member since: Jul 23, 2013

That is the iFan belief. Still, Apple finally broke the carriers. They were testing how far they could milk their carrier partners knowing that that's who is actually paying for the iFans' addiction. Let's see when they break the iFans.

7. Atechguy0

Posts: 918; Member since: Aug 03, 2018

We are coming up to the holiday season. Tis the season to be broke ;-). Most people start buying their electronics right now. Some will wait for the black Friday sales or cyber Monday deals, which are not too far away now. However there is still some carriers with BOGO deals for some of the other smartphones. So definitely not just IPhones or Galaxy smartphones.

2. xxxegoxxx

Posts: 5; Member since: Nov 02, 2014

I know when I used to sell phones for Sam's club the biggest complaints I heard when it came to the bogo offers is having to do a new line of service.

3. thedizzle

Posts: 202; Member since: Oct 05, 2017

For real.

6. strategic_developer

Posts: 1627; Member since: Jul 17, 2018

BoGO deals don break carriers. They always make their money. I think it isnt bring as many extra sales as it use too.

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