Following Apple’s footsteps, the South Korean company is reportedly set to introduce a monthly leasing plan for its Galaxy smartphones.
Samsung is reportedly set to introduce a leasing program for its Galaxy smartphones in the US market. This comes following Apple’s announcement of the iPhone Upgrade Program at the September 9th event, that allows users to upgrade to the latest iPhones annually, against a fixed monthly charge.
An industry executive privy on the topic told Forbes that Samsung is looking to launch the leasing program in the next few months. Earlier, at the Apple keynote, it was announced that users can now lease an iPhone against a fixed monthly fee. The report of Samsung following in Apple’s footsteps comes barely two weeks after the iPhone Upgrade Program was unveiled. Samsung might also expedite the launch of the scheme, the source told Forbes.
Through the iPhone Upgrade Program, Apple is giving users the option of upgrading to the latest iPhone model every year, along with AppleCare+ services. It will allow customers to own the iPhone 6S and the 6S Plus without agreeing to a carrier contract. The program can be availed at Apple stores, at starting prices of $32 a month for the 16GB iPhone 6S. Under the two-year contract, users will get the latest iPhone along with the renewal of the contract, which covers two accidents under the AppleCare+ scheme.
Some carriers in the US have discontinued the two-year contracts, providing high-end handsets at a subsidized rate. T-Mobile and Verizon now require customers to pay the full price of the smartphones. In order to drive the sales of premium devices, carriers and manufacturers are turning towards offering them on lease. According to experts, the leasing model will result in more revenues for the manufacturers, as older models are refurbished and re-sold. Pricing details and the devices to be made available under Samsung’s leasing program are unknown, as yet.
The concept of mobile contracts is not very common in India, where users have to buy the handsets outright. The high cost of premium smartphones by Apple or Samsung is a major factor contributing to the slow growth in the high-end segment. Subsidy models are therefore required to boost the sales of these flagship devices.
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