36 months to pay off a phone?!?!?! Hahahha wow. Let's discuss the reasons why Verizon chose to do this to their customers.....I'm gonna go with Verizon doesn't have the money anymore to credit all these massive trade in promos and this is their quick fix to spread out their debt over another year.
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So customers will forfeit promo credits if they purchase a new phone before 3 years.
The fact the a phone payment term is getting as long as a car payment term is ridiculous. Customers always ask "why do I have to do 24 months?" Well now they have to do 36!!
Zero percent financing? That's the smart way to pay, not cash.
As phone prices go higher, it will be increasingly difficult for the average Joe to afford the monthly payment. Spreading it out over a longer period of time makes sense. As a previous poster highlighted, it also allows us to sneak in some other services while the overall monthly bill stays the same. Feels a little car-dealerish, but sadly it is how many people budget.
Nobody wants to plunk down $1200+ for a new iphone these days if they can help it. Other carriers offer payment plans as well. This is not news.
I bought my last phone for $200 on Amazon cash money. Easy peasy. These overpriced payment plan phones are for $uckers.
A couple possible reasons: 1) They're hedging their bets. They know some people are going to want to upgrade or be forced to upgrade (broken or lost stolen phone without insurance and no backup option). The customer will pay off device early and forfeit remaining promotional credits. 2) By spacing out the payments over a longer term it gives the illusion that the phone and your overall bill is more affordable so the customer is more likely to add services that generate revenue (pull thru, insurance, higher price plans, etc) and less likely to port out to cheaper carrier. 3) Verizon may want to get out of the game of selling phones and focus on building out 5G network. With 36 month or full retail as the only options, some customers will opt to buy their devices directly from the manufacturer (Apple, Samsung, etc.). 4) With the ongoing chip shortage and supply chain issues, Verizon may be anticipating a slow down in production which may affect manufacturer's ability to release a new model every year and overall ability to get units to market in a timely manner. Also Verizon may be forecasting that rising inflation will increase the overall cost to produce units to sell.
What if they know that things on a macro economic level are going to get far worse over the next couple years so this is the way they keep some customers from porting out to budget carriers when the "recession" and inflation really kick in.