Apple’s upgrade program disrupts wireless carriers

iPhone Upgrade Program expected to boost Apple’s margins, force carriers to more aggressive pricing
[Via AppleInsider]

The new official iPhone financing plan is seen by investment firm RBC Capital Markets as a benefit not only to Apple, but also to its customers, both of whom should gain leverage over wireless carriers.


Apple will easily let you upgrade your iPhone every year, simply by paying monthly and will include Applecare+. This completely dissociates the phone from the carrier. You are not tied to any carrier by a contract. The contract is with Apple.

This means you can change your carrier when you update, getting the best deal. The wireless carriers can not expect you to stick with them because of a contract or because it is easier.

Apple will be happy to change you to whichever carrier you want at the yearly upgrade.

I know several people that are ready to buy out their present contract with their carrier so they can get into the Apple Upgrade program now. I have about 6 months and then I will do the same.

I am sure the carriers are not happy.

Image: Doug Belshaw