Change upgrade policy!

Question

Level 1

7 points

Change upgrade policy!

First off, I have only had the iPhone for a few weeks and I think it is the best phone I have ever seen. My primary concern is the yearly new iPhone release Apple puts out. If you are going to make a new iPhone yearly, I think Apple should allow their customers to get a discounted upgrade yearly as well. Limit it to older iPhone to newer iPhone only. Require a new 2 year deal every time, with the exception of the yearly trade in of older iPhone to newest iPhone. This will keep customers addicted to their iPhones for many, many years, keeping their eyes off the Androids and other smart phones as they come out with new releases and features. I really enjoy my iPhone 4, but when the iPhone 5 comes out, I will really want to enjoy that as well. I'll pay another $300 to upgrade, I'm just not going to pay $1,000 for it. Plus, when 4G LTE comes out over the majority of the Verizon network, I will definitely want a 4G LTE capable phone. Cell phone networks add updates so frequently, 2 years is a very long time to stick with 1 phone. Apple, please give us the capability of upgrading our iPhones yearly as you release your new phones! I'll sign as long a contract to keep an iPhone as you want if you allow me to upgrade to a new iPhone at the discounted price every year!

PC, iOS 4

Posted on Mar 14, 2011 6:28 PM

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Answer 1

Mar 14, 2011 6:53 PM in response to olpdog

The upgrade policy is determined by the carrier, not Apple. AT&T treats iPhones as they would any other phone (smartphone, technically) with regards to plans, subsidies, and contracts, and I'm pretty sure the same goes for Verizon.

EDIT: You see, you aren't really getting a discount at all. It's more of a loan. You will pay back your carrier the subsidy that they provided by paying your monthly bill over the course of your 2-year contract. The larger your monthly bill, the faster your carrier gets paid back the money it "fronted" for you that gave you the opportunity to buy the iPhone from Apple at such a low price. This is why many customers become eligible for an upgrade before their 2 year contract is up. Again, the carrier provides this subsidy, not Apple. If you were to buy the iPhone outright (hardware only, no contract or cell service) it would cost hundreds of dollars more.

The subsidy is an incentive for the customer to buy new phones from the carrier's providers, and the 2-year contract is insurance for the carrier to keep the customer and his/her monthly bill. It's a win-win for the carrier and the cellphone manufacturers/providers.

Message was edited by: eaglesflight1258

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Answer 2

Tamara

Level 6

13,744 points

Mar 14, 2011 6:38 PM in response to olpdog

If you want to upgrade every year for ANY phone, you need to pay full price, not the subsidized price. It's been this way with cell phones in the US for the last 10 years or so. Is the iPhone your very first cell phone that you're unaware of this?

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