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Verizon Offers Free iPhone 6 in Return for 2 Year Contract, Used Phone

Verizon Offers Free iPhone 6 in Return for 2-Year Contract, Used Phone

By Reuters | Updated: 10 September 2014 09:16 IST

Verizon Communications will give subscribers who trade in an old iPhone a free iPhone 6 in exchange for a two-year contract, the country's largest wireless carrier announced hours after Apple Inc unveiled the widely anticipated device.

The announcement came as critics speculated that Apple's newest phone, starting at $199 with a two-year contract, would not be competitive as more carriers eliminate contracts and unbundle service charges from the cost of devices.

Analysts say that by making the cost of devices more transparent, equipment financing plans make expensive handsets like the iPhone less appealing. On the other hand, the plans allow customers to pay for devices in installments, making pricy devices like the iPhone more accessible.

Customers who trade in an iPhone 4, iPhone 4s, iPhone 5, iPhone 5c or iPhone 5s in working condition will receive a $200 gift card to pre-order the 16-gigabyte version of the newer model, Verizon said in a statement. The offer does not apply to Apple's other new phone, the larger iPhone 6 Plus.

(In comparison: iPhone 6 Plus versus iPhone 6 versus iPhone 5s versus iPhone 5c)

Verizon has been more reluctant than competitors to dive into equipment financing, and its promotion indicates its attachment to the older contract model, which binds subscribers to the carrier for a fixed term, said Jan Dawson, analyst at JackDaw Research.

"There is an inherent risk in the shift to installment billing that it creates more loyalty to the device than to the carrier," said Dawson.

"Verizon sees the value of the two-year contract in that tying a device to a two-year plan can prevent churn," said Dawson.

(Also see: iPhone 6 and iPhone 6 Plus Available in India October 17; Price Unknown)

He pointed out that new device releases are major factors for subscribers in deciding whether to switch carriers.

As the market for new smartphone customers shrinks, carriers have been competing aggressively for subscribers, slashing prices and engaging in creative promotions to poach each others' customers.

On Monday, T-Mobile announced it would beat any other major carriers' trade-in rates and give customers a $50 credit as well.

iPhone 6, iPhone 6 Plus, Apple Watch Launch

Apple iPhone 6

REVIEW
KEY SPECS
NEWS
Variants

Design
Display
Software
Performance
Battery Life
Camera
Value for Money

Good
Thin, light, easy to handle
Excellent camera
Superb performance
Reasonably good battery life

Bad
Limited storage

Read detailed Apple iPhone 6 review

Display 4.70-inch

Processor Apple A8

Front Camera 1.2-megapixel

Rear Camera 8-megapixel

RAM 1GB

Storage 16GB

Battery Capacity 1810mAh

OS iOS 8.0

Resolution 750x1334 pixels

More Apple mobiles Apple mobiles price in India

Choose a variant

Apple iPhone 6 Plus

REVIEW
KEY SPECS
NEWS
Variants

Design
Display
Software
Performance
Battery Life
Camera
Value for Money

Good
Fantastic performance
Very good battery life
Excellent camera

Bad
Large and awkward to use
Lacks software optimisations

Read detailed Apple iPhone 6 Plus review

Display 5.50-inch

Processor Apple A8

Front Camera 1.2-megapixel

Rear Camera 8-megapixel

RAM 1GB

Storage 16GB

Battery Capacity 2915mAh

OS iOS 8.0

Resolution 1080x1920 pixels

More Apple mobiles Apple mobiles price in India

Choose a variant

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