A rumor dating back to last September claimed that Samsung might unveil a leasing program comparable to the iPhone Upgrade Program. A new leak from Korea confirms the rumor: the program would come with the Galaxy S7
Rumor. is not new Samsung smartphone would develop a high leasing program range comparable to the Apple iPhone Upgrade Program. The latter is a monthly subscription with which each holder restarts each year an Apple Store with a new phone. Great financial idea because it binds a consumer to indefinitely brand and it increases considerably (from 100 dollars per unit approximately) the average amount reported by an iPhone, the customer has chosen to keep 24 months or make the after a year.
Concept Samsung Galaxy S7
The Galaxy Official Upgrade Program with the Galaxy S7?
Since September, just days after the output of iPhone 6S and 6S Plus, a rumor stated that the idea could quickly be reversed by Samsung for the Galaxy family. But it has still not materialized. However, Samsung has not abandoned the project. According to the Korean portal ET News , the world leader in telephony would have planned to deploy its leasing offer with Galaxy S7 and its first versions. We would be curious if Samsung plans to drop the program range, including for example the Galaxy A …
This means that Samsung should formalize the “Galaxy Upgrade Program” (or whatever its name) in February, when Unpacked conference in Barcelona. It would then be available in the month of March at the commercial launch of the phone. The program would initially planned for Korea only (probably to test the reception of such a service), but international deployment (especially with the United States in sight) would not be ruled out.
A profitable operation must still be attractive
In an article published by Barron’s and relayed in our columns last September, it appears that the iPhone Upgrade Program is a particularly attractive mechanism financially. Indeed, regardless of the scenario chosen by the user (purchase of the iPhone in 24 months or exchange within 12 months), a terminal brings in more money than their face market value. Moreover, it significantly shortens the terminal renewal cycle (now 26 months but could potentially go down to 18 months). And that linking the consumer to the brand that return every year to change his cell phone.
It is also necessary to convince the consumer to report their smartphone after one year. Apple attractiveness required for this. But the Samsung can it really? In 2015, the Korean group unveiled the Galaxy S6 and S6 Galaxy Edge, actually two attractive mobile. But that was a long time since the Korean group had not managed to crystallize much attention. A renewal program implies it will do as well every year. That seems very ambitious …
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