Wednesday, June 3, 2015

No Apple Store iPhone Subsidy Offered Starting on June 1

U.S. customers are used to buying smartphones using Apple Store iPhone subsidy option offered by different local carriers. Such a plan tied consumers to the 2-year contract but also gave a chance to purchase the expensive models with lower up-front cost. The rules have finally changed as Apple drops AT&T iPhone subsidy option from now on.


If you come to the retail store in hopes to buy Apple smartphone with a subsidy you will be out of luck. The company decided to stop offering subsidies in its stores. Instead Apple iPhone installment plan USA is offered.

Reports state that the ‘fruit’ giant informed its employees about the changes. All the local Apple stores will not sell iPhone 6, 6 Plus and other models with the AT&T subsidy option any more. This way users won’t be tied to the contract, but they will be able to get the handset with AT&T Next plan that promises an installment plan for different periods of time.

The similar thing happens to Verizon Edge Up package. Apple does not want to sell Verizon Wireless smartphones that promise full upgrade in 18 months. The company only offers the standard plan that gives customers an option to upgrade to the newer iPhone in 24 months only.

These changes take place thanks to other U.S. networks that go away from the 2-year contracts and give customers more freedom. How will American carriers attract new subscribers now? They are used to rely on subsidies but from now on they can offer 2-year contracts only in their local stores and can’t do the same through Apple retailers.

What plans do you prefer more? Are you ok with getting the iOS phone with a 2-year contract or prefer the installment which allows paying monthly fees for 20, 24 and 30 months? Some mobile operators can still give their consumers an option to get a newer smartphone after 12 or 18 months.

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