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This will be a huge profit maker for Apple. It gives the illusion of a 0% finance option to customers and yet Apple get to take back the old iPhone after that year. If an iPhone retains 50% of its value after 1 year then this actually equates to an APR of 100% which is massive... (I.E. You end up with 0% equity at the end of a year rather than 50%)...

No, at the end of a year, you end up with 50% equity. At that time, you owe ~$450-500 depending on with model you choose. You can continue paying your monthly installments until you own the phone, or you can trade it in for the new model. It isn't that difficult to understand. Any illusion that exists is of your own making.
 
I wonder how much cash is needed for this type of program. Essentially Apple is floating the cost of the iPhone for everyone on the lease program, right? I wonder if Samsung can actually afford this.

First of all Samsung has a bunch of money, also. Second, if you look into the terms and conditions of the Apple upgrade program you will see that it's actually being underwritten by a bank.

Apple has partnered with a bank. Those who wish to get onboard with the Upgrade program will have to submit to a credit check, and will be in essence leasing the phone from the bank. They will have an option to continue buying it at the end of one year, thereby continuing to pay for its "residual value." Or they can turn it back in, forfeiting any "equity" they may have in it, and start a new "lease."

I have an appointment set up for Friday to upgrade my iPhone 6, that will be out of contract on that day. But I have been reading the fine print, and here's my problem: The Upgrade documentation says that, in order to get the phone in the Upgrade program I have to "activate" the phone on a new or existing service plan with a carrier (emphasis added by me):

"...The Financed iPhone requires activation on a new or existing wireless service plan with an eligible carrier under the carrier’s terms, and may be subject to an additional fee charged by your carrier."

I already have a service plan with Verizon, and a SIM card that I can just pull out of my old phone and drop into the new phone. I don't want to go through an "activation" with Verizon, and pay their stupid $35-$40 activation or upgrade fee.

Apple has held this whole Upgrade thing out to be "carrier independent," and the draw to going this route to me is the idea that I don't have to involve Verizon in the process, and I can just get the unlocked phone, and pop my Verizon SIM into it. Then I am independent of them, and can choose to move to another carrier later if I want.

But if I walk into the store on Friday and they want me to go through some activation routine with Verizon to get this phone I'm walking out.
 
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I'm glad. I'd rather deal with a company directly than through carriers. I always hate dealing with AT&T people. They're so backwards and full of lies (at least the corporate store by me). Lord help you if you want to return a phone. All of a sudden you're their worst enemy. Anyway, hopefully for Android it means no carrier bloat.
 
Coming soon
Samsung Touch
Pink (Rose Gold) as new color for the Galaxy S Line

The photocopying continues. Too bad it can't rescue those declining profits of theirs.
 
It's not so much that Samsung isn't allowed to do this too, it's that they announce this stuff DAYS after Apple does, change the name a little bit, and then release it half baked. It just makes them look pathetic and unoriginal.
Ok this post works. But the rest of the fanboy rubbish in this thread is pathetic. How about Apple copied Samsung by making a phone at all?
Just as much of a reach right guys. Jesus leave it alone FFS.
 
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... and surprised nobody.

Well, it shouldn't surprise anyone, but not for the reason many are thinking.

We were predicting well over a year ago that, with subsidies going away, any maker of a higher priced phone will have to implement its own programs to help users afford them.

We can all agree that Apple and Samsung copy each other. If you don't, you need a reality check and a slap in the face.

Exactly.

Also remember that Samsung had documents that said to COPY the iPhone when it was released years ago.

Myth. In fact, that UI comparison document explicitly said to avoid closely copying the iPhone.

Most of it was along the lines of: "iOS has easier-to-access menus and fun animations. We should have those too".

No doubt Apple had a similar document which they used to gather ideas for all their soft/hardware updates over the past year or two, which has made their phone features more on par with Samsung Note phablets.
 
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First of all Samsung has a bunch of money, also. Second, if you look into the terms and conditions of the Apple upgrade program you will see that it's actually being underwritten by a bank.

Apple has partnered with a bank. Those who wish to get onboard with the Upgrade program will have to submit to a credit check, and will be in essence leasing the phone from the bank. They will have an option to continue buying it at the end of one year, thereby continuing to pay for its "residual value." Or they can turn it back in, forfeiting any "equity" they may have in it, and start a new "lease."

I have an appointment set up for Friday to upgrade my iPhone 6, that will be out of contract on that day. But I have been reading the fine print, and here's my problem: The Upgrade documentation says that, in order to get the phone in the Upgrade program I have to "activate" the phone on a new or existing service plan with a carrier (emphasis added by me):

"...The Financed iPhone requires activation on a new or existing wireless service plan with an eligible carrier under the carrier’s terms, and may be subject to an additional fee charged by your carrier."

I already have a service plan with Verizon, and a SIM card that I can just pull out of my old phone and drop into the new phone. I don't want to go through an "activation" with Verizon, and pay their stupid $35-$40 activation or upgrade fee.

Apple has held this whole Upgrade thing out to be "carrier independent," and the draw to going this route to me is the idea that I don't have to involve Verizon in the process, and I can just get the unlocked phone, and pop my Verizon SIM into it. Then I am independent of them, and can choose to move to another carrier later if I want.

But if I walk into the store on Friday and they want me to go through some activation routine with Verizon to get this phone I'm walking out.
When financing anything, the devil is always in the details. I long ago stopped buying phones on contract. If I can't buy it outright, I tend not to buy it. That's my philosophy with most consumer purchases.
 
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-gets the list and puts on glasses-

Ahem. Well lets see what Samsung took from Apple after Apple introduced it

S-Voice
Samsung Pay
The Fingerprint on the home button
The Gear S2
The underside of the Galaxy S6


If you are coming to take on Apple saying that Apple copied EVERYTHING from Samsung, be sure to remember that Samsung isn't all innocent when ripping off Apple.

The Gear S2? You're kidding right? To be fair, pedantically, the Gear S2 was intro'd after the AW so I'll give you that. But the implication that Samsung copied the smartwatch is kind of silly. As for the rest of your list? I could be wrong, but none of those ideas originated inside Apple. It's been said by many others in this this thread, but all of these companies borrow ideas from each other. In the end, it's the consumers who benefit by getting the best from everyone.

Unrelated: That S2 Classic looks really tempting to me. Too bad it runs Tizen. Hopefully Sammy intro's a Wear version. If so it would be a tempting purchase.
 
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I agree with others here. Samsung needs to just stop and find their own identity. Where's their sense of pride?
 
Myth. In fact, that UI comparison document explicitly said to avoid closely copying the iPhone.

Most of it was along the lines of: "iOS has easier-to-access menus and fun animations. We should have those too".

No doubt Apple had a similar document which they used to gather ideas for all their soft/hardware updates over the past year or two, which has made their phone features more on par with Samsung Note phablets.

Not myth. The doc reads like this:

iPhone has feature X.
Galaxy S1 is inferior in these ways. Recommendation: make Galaxy like iPhone by making this series of changes that wholly describe what the iPhone does/has, but take small measures to avoid accusations of copying.

The purpose of the document is obvious. Having one sentence at the end of each list of items to copy cautioning not to get caught certainly doesn't change that.
 
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Not myth. The doc reads like this:

iPhone has feature X.
Galaxy S1 is inferior in these ways. Recommendation: make Galaxy like iPhone by making this series of changes that wholly describe what the iPhone does/has, but take small measures to avoid accusations of copying.

The purpose of the document is obvious. Having one sentence at the end of each list of items to copy cautioning not to get caught certainly doesn't change that.
Like all companies do..
 
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When financing anything, the devil is always in the details. I long ago stopped buying phones on contract. If I can't buy it outright, I tend not to buy it. That's my philosophy with most consumer purchases.

I have a different approach. If someone is going to let me use their money for free for two years I am all for it. But having to bring my carrier into the conversation is a deal breaker for me.
 
I use to give Android guys slack but tried using a Note 5 in the store the other day and it was horrible... Only thing I'll give them mad props for is that gorgeous display.
I've been using one at work a bit and have exactly the same reaction. It's buggy, glitchy, flakey, and infuriating to use, but the screen is gorgeous.

Really wish Apple would move to OLED. The perfect zero black levels are really a sight to behold and the color accuracy is much better than OLEDs of a few years ago.
 
kinda like some of the features you just got on IOS 9 that Samsung has been doing

3d touch.....lol
all the phones make phone calls i think what can't be copied is in the implementation so I'm sure apples 3d touch is implemented diffrently then what ever you are referring to
 



Samsung-Galaxy-S6-Edge-Plus-250x316.jpg
Samsung is planning to follow in Apple's footsteps by launching its own Galaxy smartphone leasing program in the U.S. over the coming months, according to Forbes.The report does not offer any other details about Samsung's plans for the rumored smartphone leasing program, but the move would make sense as the wireless industry moves away from subsidized pricing and two-year contracts in favor of monthly installment plans and financing programs for payments.

Apple introduced the iPhone Upgrade Program alongside the iPhone 6s and iPhone 6s Plus earlier this month, enabling customers to upgrade to a new iPhone every year with AppleCare+ warranty coverage included. Eligible customers who sign up for the program will have the full cost of their new iPhone broken down into 24 equal payments of around $30 to $45 per month depending on the model, plus a premium for AppleCare+.

After the first 12 monthly payments, the customer gains the option to trade in their iPhone for a new one and enter into a new 24 month installment plan to pay it off. The final cost of an entry-level 16GB iPhone 6s with AppleCare+ purchased through the iPhone Upgrade Program is $777.84, which is ultimately the same price as purchasing a 16GB iPhone 6s ($649) and AppleCare+ ($129) outright -- but with less due upfront.

AT&T, Verizon, Sprint and T-Mobile also offer their own carrier financing plans for iPhones and Galaxy smartphones, each breaking down the full price of the device into equal monthly payments.

Article Link: Samsung May Follow Apple by Launching Smartphone Leasing Program
 
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