I want the better camera and larger screen, but I do not want to pay full price. Verizon won’t subsidize it for me because I am still “paying off” the “free” iPhone 13 they gave me when I traded in my pretty new iPhone 11. The “free” consists of them billing me $22 a month, and them paying that charge themselves on the same bill. I’m sure there are explanations for how this benefits them, but I struggle to understand this Rube Goldberg billing strategy.
This information reflects the current contract terms Verizon offers to everyone.
iPhone is $899 + tax. Verizon pays Apple what you pay for the iPhone. You sign a contract for 36 months that states you’ll pay Verizon a monthly installment without interest.
As for the “free” phone, it really can be free. Based on their own internal metrics is what makes you eligible. Accounts the system has flagged for fear of losing (retention), good standing (no missed payments), long time customers (loyalty), new customers, or when there is an abundance of stock and a new model is set to release. The catch is that you’re on the hook for the price of the phone if you upgrade early or want to cancel your line. The average rep is not letting you upgrade because the system says no. A manager can override but if they do, you lose the credit. Your next bill will include the price of the phone. They’re still making money off you in the long term whether or not the phone is free. It’s calculated business.
It could be a tax thing, move some of their expenses to a different year? Or they were able to negotiate leasing from the supplier, instead of paying up front they use the money to invest in the company or invest it / stock buybacks.
I’m not a finance guy or have any special knowledge. Above is pure speculation.
I want the better camera and larger screen, but I do not want to pay full price. Verizon won’t subsidize it for me because I am still “paying off” the “free” iPhone 13 they gave me when I traded in my pretty new iPhone 11. The “free” consists of them billing me $22 a month, and them paying that charge themselves on the same bill. I’m sure there are explanations for how this benefits them, but I struggle to understand this Rube Goldberg billing strategy.
You should read contracts before you sign them.
I’m not saying I feel swindled, I’m saying I find the whole thing really odd.
They can’t sell you an expensive data plan unless you have a phone to use it. Gimmie phones require contracts and are limited to a subset of plans.
This information reflects the current contract terms Verizon offers to everyone.
iPhone is $899 + tax. Verizon pays Apple what you pay for the iPhone. You sign a contract for 36 months that states you’ll pay Verizon a monthly installment without interest.
As for the “free” phone, it really can be free. Based on their own internal metrics is what makes you eligible. Accounts the system has flagged for fear of losing (retention), good standing (no missed payments), long time customers (loyalty), new customers, or when there is an abundance of stock and a new model is set to release. The catch is that you’re on the hook for the price of the phone if you upgrade early or want to cancel your line. The average rep is not letting you upgrade because the system says no. A manager can override but if they do, you lose the credit. Your next bill will include the price of the phone. They’re still making money off you in the long term whether or not the phone is free. It’s calculated business.
It could be a tax thing, move some of their expenses to a different year? Or they were able to negotiate leasing from the supplier, instead of paying up front they use the money to invest in the company or invest it / stock buybacks.
I’m not a finance guy or have any special knowledge. Above is pure speculation.