The death of the two-year contract marks the acceptance of the new competitive environment for mobile operators in the United States. Not only are they competing with other mobile operators to attract phone subscribers, but they are also competing with manufacturers and retailers for loyalty. Opening doors to Apple and SamsungWith customers who are now forced to pay the full price of their phones (either in advance or over time), customers have less incentive to buy phones directly from their mobile operator. Instead, they could choose to buy their phone from an electronics distributor or directly from the manufacturer itself. However, our best estimate is that you would be liable – at least – for the remaining balance of your equipment financing agreement or subsidy with a possible administrative fee. To better adapt the U.S. market to the rest of the world, Apple launched a new iPhone subscription plan this year. You pay Apple about $30 a month (prices vary depending on the model chosen) and you can update each year to a new iPhone. It`s more like renting a phone than owning it. But that`s a pretty good offer if you know you`ll update with every new iPhone. But at the end of the day, you always pay the same amount. Now it`s up to you to pay the full cost of your smartphone in advance or in blocks over two years. And it`s up to companies like Apple to convince you that it`s worth spending the real cost of your smartphone.
Here`s some math. You pay $230 for a $720 smartphone. They still owe $490. To get the phone for $230, you agree to a two-year contract. This contract requires you to sign up for a plan that costs at least $75 per month. Over two years, it is $1,800. If you have your own phone, you can get the same features, with 10 percent discount included, for $45 per month or $1,080 USD for two years. That is a difference of $30 a month; 24 months x $30 – $720. 3. Do you know your company`s return policy – Most mobile phone companies have a ”remorse” policy for buyers, a period during which they can opt out of a contract obligation.