Samsung is reported to be planning a smartphone lease plan, similar to that unveiled by Apple in line with its iPhone 6s debut.
Apple’s plan offers customers the chance to get a new iPhone annually, alongside an enhanced warranty programme, in return for a monthly fee (starting from $32). It is currently only available in the US market.
According to Forbes, Samsung’s new plan will be introduced in the coming months, although it may speed its proposition to market.
While Apple’s iPhone demand continues to be strong, Samsung has seen its own flagship efforts falter, leading to the company reviewing the pricing of its premium products.
With this in mind, it makes sense for Samsung to make it easier for customers to access its high-end devices – particularly if its biggest rival is already doing similar.
The company’s move to offer leased devices comes alongside operator efforts to unbundle device cost and subsidies from service plans – driven by the fact that high-end smartphones have become more and more expensive.
The benefit for Apple and Samsung comes in that the vendor gains a direct and ongoing financial relationship with customers, who are on a path to upgrade to the next device to the company — effectively locking them to the vendor for a prolonged period of time.