Samsung Poised to Follow Apple with Smartphone Lease Option

by Matt Klassen on September 22, 2015

Earlier this month Apple moved a step closer to completely replacing your phone company, launching a phone leasing program designed to make it easier for users to constantly upgrade to the latest and greatest Apple products. While such instalment plans have already been introduced by the majority of carriers this last year, Apple was the first smartphone maker to bypass carriers altogether and offer its own upgrade strategy, but you just knew it wouldn’t be the last.

To that end, Samsung is reportedly poised to take yet another page out of Apple’s playbook, as the South Korean tech giant is planning to unveil its own lease program to US customers.

While so far Apple’s personalized offering is far more expensive than other such early upgrade options offered by carriers, look for Samsung to attempt to carve out a niche in the mobile lease market by driving its prices down, yet another way that the Korean company will ostensibly offer Apple products in a more affordable Android wrapping.

In its glitzy press event earlier this month, Apple unveiled its iPhone Upgrade program, along with upgrades to its smartphone and tablet line-ups. The upgrade program encourages consumers to switch out their smartphone with increasingly regularity, making it easy to trade-in last year’s model for this year’s slightly different iteration.

Not only that, but Apple’s direct offer also encourages users to bypass carriers entirely, driving more sales into the Apple Store instead of buying the phone through carriers. The program starts at $32/month over a two-year financing term, and allows consumers to get new iPhones every year, along with having access to Apple Care customer support service.

While the actual savings of such a leasing agreement are negligible (non-existent if customers stay perpetually locked into the program), the new direct to consumer leasing option threatens to shake up the entire mobile game, so it’s really a no-brainer that Samsung would have to make its presence felt as well.

Again, although Samsung has said nothing about its own pricing options, I would guess that like its Android phones, Samsung’s service will be significantly more affordable, along the lines of what we’re currently seeing from carriers.

All I really know is that like the days of iPhone exclusivity, Apple is once again calling the shots in the mobile market, ostensibly managing the traffic between consumers and carriers. While leasing is, in my mind, one of the biggest marketing scams perpetrated on consumers, it will reap great rewards, so again it’s really no surprise that Samsung (and likely other Android partners) are looking to quickly follow suit.

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Written by: Matt Klassen. Follow by: RSS, Twitter, Facebook, or YouTube.

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