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Apple ( AAPL ) could be getting more aggressive with its iPhone upgrade plans, which so far apparently haven’t dented sales at wireless phone companies such as AT&T ( T ) and Verizon Communications ( VZ ). Apple on Monday rolled out the 4-inch-screen iPhone SE, priced starting at $399 for the 16 gigabyte model. Apple “also upped their game on trade-ins to drive sales through their upgrade program,” said Walter Piecyk, an analyst at BTIG Research, in a research note. Apple introduced its own financing plan for iPhone purchases in September, when rolling out the 6S series. Analysts were unsure if Apple’s own monthly installment payment plans posed a worry for AT&T, Verizon, T-Mobile US ( TMUS ) and Sprint ( S ). Apple in late January had nothing to say about demand for its iPhone upgrade program on its fiscal Q1 earnings conference call. One view was that Apple’s financing plan would create more customer loyalty for Apple, at the expense of its carrier partners. Wrote Piecyk: “A new entry level iPhone SE would cost $17 per month under the plan, but Apple will drop that monthly charge to $10 per month if an iPhone 5S in working order is traded in. That implies an iPhone 5S trade-in value of $168 compared to the $100 to $120 that Gazelle is paying for an iPhone 5S today.” Gazelle is a popular trade-in website. Many of the used iPhones acquired by wireless distributors Brightstar, Gazelle and others are resold in emerging markets, particularly mainland China. If Apple is getting more aggressive, it may be laying the groundwork for the iPhone 7’s debut later this year. Wireless firms have been phasing out service contracts, which involved retail subsidies. AT&T and Verizon have shifted to monthly installment payment plans. T-Mobile and Sprint also have equipment installment plans (EIP). Both T-Mobile and Sprint also have leasing deals, which cost less monthly, while AT&T and Verizon have steered away from leasing offers. Scalper1 News
Scalper1 News