From SIlicon Valley Biz Journal
Samsung thinks Apple’s leasing program is a fantastic idea.
The South Korean electronics company will launch its own leasing program for its Galaxy phones in the U.S. market, according to Forbes, citing an individual close to the plans. The program may launch within the next few months in order to compete with Apple’s recently announced iPhone Upgrade Program.
Spur sales
The Galaxy phones cost between $700 to $900, even pricier than Apple’s iPhone 6 Plus. Samsung has been struggling to keep up with Apple since the launch of the Galaxy 6 earlier this year, according to the Wall Street Journal .
Apple’s iPhone sales have always had a high selling price, but the bulk of Samsung’s growth comes from mid-tier and low-end Galaxy devices such as the Galaxy A, E and J series, per The Verge.
Smartphone carriers used to subsidize the cost of the phone when customers signed a contract, but with the increasing costs of high-end smartphones, carriers are shying away from fronting the cost of the devices. Samsung needs to give its customers an option to spread out the cost if it’s going to compete in the high-end market.
Galaxy users who end up owning their smartphones phone are disincentivized to make a new purchase when the next upgrade comes along.
A lease option would be cheaper than the installment payments, and at the end of the contract a consumer would turn in the phone and renew the lease. The option would keep the consumer up to date with the upgrades, but still paying a leasing fee.
Apple announced its own leasing plan at its September event. The upgrade program nudges consumers toward buying iPhones directly from the Apple Store instead of going through the carriers. Apple users will sign a two-year financing agreement that allows them to get new iPhones every year along with AppleCare for $32 a month.
It is unknown what Samsung’s pricing structure will be, but it’s likely to be competitive with Apple’s new plan
Samsung thinks Apple’s leasing program is a fantastic idea.
The South Korean electronics company will launch its own leasing program for its Galaxy phones in the U.S. market, according to Forbes, citing an individual close to the plans. The program may launch within the next few months in order to compete with Apple’s recently announced iPhone Upgrade Program.
Spur sales
The Galaxy phones cost between $700 to $900, even pricier than Apple’s iPhone 6 Plus. Samsung has been struggling to keep up with Apple since the launch of the Galaxy 6 earlier this year, according to the Wall Street Journal .
Apple’s iPhone sales have always had a high selling price, but the bulk of Samsung’s growth comes from mid-tier and low-end Galaxy devices such as the Galaxy A, E and J series, per The Verge.
Smartphone carriers used to subsidize the cost of the phone when customers signed a contract, but with the increasing costs of high-end smartphones, carriers are shying away from fronting the cost of the devices. Samsung needs to give its customers an option to spread out the cost if it’s going to compete in the high-end market.
Galaxy users who end up owning their smartphones phone are disincentivized to make a new purchase when the next upgrade comes along.
A lease option would be cheaper than the installment payments, and at the end of the contract a consumer would turn in the phone and renew the lease. The option would keep the consumer up to date with the upgrades, but still paying a leasing fee.
Apple announced its own leasing plan at its September event. The upgrade program nudges consumers toward buying iPhones directly from the Apple Store instead of going through the carriers. Apple users will sign a two-year financing agreement that allows them to get new iPhones every year along with AppleCare for $32 a month.
It is unknown what Samsung’s pricing structure will be, but it’s likely to be competitive with Apple’s new plan
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