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“Mortgage” Apple: software updates the iPhone once a year for $32 a month is popular with users

In September, Apple gave iPhone fans a new opportunity to get a new model instead of old, having a monthly subscription program upgrade – Program Upgrade Apple Service was announced alongside the iPhone 6s and iPhone 6s Plus. According to the research analyst Jim Munster from Piper Jaffray, the new Apple is more popular than originally anticipated.

Every iPhone buyer who wants to upgrade simultaneously with the release of a new model, may sign a contract in which he agrees to pay at least $32 on a monthly basis. In the end, he will not miss any update and next year will get the next-generation iPhone soon after release.

After the announcement of the iPhone Upgrade Program analysts assumed that only 15% of new iPhone customers will choose the proposed Apple format 24-month lease of smartphones. The service was much more popular. Out of the 188 iPhone 6s buyers who participated in the survey, 70 people (37%) have purchased an iPhone under the new program. By the end of the quarter, Munster believes that the share of such users will increase to 50%.

Within the program iPhone Upgrade, paying only $32 for the first month, people have at their disposal the iPhone 6s with 16 GB of memory. For the 64-Gigabyte modification of the monthly contribution amount will be $36,58, 128 GB – $40,75. IPhone 6s Plus the cost of subscription for $ 4 – $36,58, $40,75 $44,91, respectively. In the fall of 2016 they will be able to change to a new iPhone 6s iPhone 7.

The iPhone Upgrade program would be very advantageous for Apple. Thus, according to experts, the company turns their smartphones from product to service. Buyers will change the phone every year instead of once in two or three years, which will significantly increase iPhone sales in the US. In addition, if the acquisition of the 16-Gigabyte iPhone 6s in the Apple Store costs $649, in the framework of the programme, the total payment will be $778, because the program includes extended warranty AppleCare+.

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In 12 months Apple will get a lot iPhone a year ago, which will be resold in emerging markets. This will allow it to compete with companies selling cheaper smartphones in these countries.

iPhone Upgrade Program is available only in the U.S., but soon its reach will be expanded.

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