Apple introduces the iPhone Upgrade Program for iPhone 6S and iPhone 6S Plus at an affordable cost. The program encourages more customers to engage in phone upgrades yearly. As such, this strategy can increase Apple's revenue for its new devices.
Analyst Steven Milunovich of UBS said in Apple Insider that iPhone Upgrade Program is believed to be a great move for the smartphone company as it could boost its revenue. The program provides benefits that can cause more customers to undergo phone upgrades. Steven added that if the program will be a great success, it will drive stocks to become as high as $200 per share.
In the process of iPhone Upgrade Program, the cost of the iPhone is spread out over 24 payments. During this time, users can have the option to undergo trade-in or another upgrade after one year. As noted by the outlet, the program is interest-free with a two-year loan and an ability to add AppleCare+ for security and protection.
On the other hand, CRN mentioned that iPhone users can trade-in their old iPhones and get a new model like 6S of 6S Plus. This is applicable to any wireless providers or through retail store programs. The report specified that Verizon Company can pay trade-in customers $100 for iPhones 4 and 4S, $200 for iPhones 5 or 5C, $300 for iPhone 5S, $350 for iPhone 6, and $400 for iPhone 6Plus. But for those who won't avail the trade-in, the customers can just pay $27 per month for two years to get Apple's iPhone 6s. CRN added that the company's promotion is until October 15.
Furthermore, iPhone Upgrade Program also caters SIM Subsidy Unlock where users can bring their iPhone devices from one carrier to another. This promotion is available in Gazelle where it offers a rebate of up to $95 for a 16GB iPhone 5, $75 for a 16GB iPhone 5C, $320 for a 16GB iPhone 6, and $345 for a 16GB iPhone 6Plus.
Meanwhile, Apple's exclusive page is available if customers would like to undergo iPhone Upgrade Program online. The page contains various information such as the monthly payments of the new iPhones 6S and 6S Plus, methods on how to purchase the new iPhones, and the requirements needed to be eligible for the program.
Apple's strategy can increase its customers and in turn, may increase its earnings. As such, this may also serve as a threat to its rivals in the technological industry.
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