Technically, they do make money off the device. That 0% installment plan isn't quite 0% since they're likely paying Apple just $400-500 for each phone (latest non-Plus 16GB). Of course, they make lots, lots, lots more on the service so it's good for carriers to be able to lock customers into long-term contracts.
#2 Yeah, and I recall Eddie Cue saying it would be unlocked.
Yep. That's a big question for some folks. Does it require you to have a traditional carrier plan? I do wonder if they're going to run a credit check. One of the requirements is having a US credit card so maybe if you have one they assume you're an OK risk? If they don't run a credit check, it's possible they might need you to have a postpaid plan as support of your credit worthiness. Alas, when I clicked on the link for the full terms and conditions, it just said Coming Soon.
Oh yeah, this will also increase iPhone ASPs because of all the folks who'll "buy" AC+ that wouldn't have gotten it if not for the installment plan.
Very true. I actually work at an ATT retail location that can still do 2-year contracts though there is no guarantee that they will have what I want on launch day so I will have to risk ordering from ATT's website on Saturday instead.
You can already BYOD on most prepaid plans, why would BYOD iPhones cause a pricing change?
That part should be a sticky in this thread. Consumers win when they can buy a phone and use it wherever they want. Now carriers will have work harder to get customers. That means better rates and plans.
Why would the carrier distinguish between a 3rd-party financed phone and one paid for with cash? Either way it's BYOD. I financed a Moto X through Motorola. The carrier didn't care that i didn't finance the phone through them. I see no evidence that BYOD has caused prepaid prices to increase. If the carriers are so scared of that why didn't they forbid Apple from selling phones for cash or simply deny BYOD phones? Other than ignorance, postpaid has typically had features prepaid didn't, like included roaming and international calling. That's valuable to some people.
Imagine you can buy your phone from apple (finance though them instead of the carrier) and get your plan from just ATT or another carrier. Why would anyone be post paid and pay the extra $15 per smartphone?
This iPhone finance will only be for post paid customers. I do prepaid b.c it is cheaper and buy my phones outright. However if ATT would let me do next with prepaid I would. They do not b.c the monthly plans are cheaper.
I hope that makes sense. Apple is not trying to ruffle the feathers of the carriers. Offering this plan would push people to stop financing through the carriers and only get a phone plan from them. If you are only getting a phone plan from them, prepaid makes the most sense b.c there is no device fee. Otherwise apple would let you just finance the phone. They make you activate it or have an active line (which I bet has to be post paid).
If this is only available to post paid customers, it really changes nothing at all....and that is exactly what this is...a mind Fu** for people
True. That said, I see this move more like Apple trying not to alienate carriers right away. Apple still has to tread carefully given carriers are Apple's biggest customers. Rather, Apple's introducing changes little by little so that more "carrier customers" become "Apple customers". Once that transition's done, Apple will probably do away with the carrier restriction for the iPhone Upgrade Program.
They could refuse to allow Apple-sold phones on their networks. The fact that they do not says that this linkage between Apple's financing program and having a postpaid carrier line is unnecessary. Why forbid a Cricket or Straight Talk customer from financing a phone through Apple? That sure doesn't help Apple.
