Apple Changing The Way People Select Phones And Carriers
By Ian Bush
PHILADELPHIA (CBS) -- Apple enjoys a rabid fan base, as evidenced by the lines that form outside its retail stores when new devices land on shelves. Now, it's looking to harness that excitement while it challenges the traditional wireless company model for getting a new phone.
It's a program Apple is offering through its retail stores. Marketing VP Phil Schiller says you get an unlocked iPhone, your choice of carrier, and an extended warranty.
"And you like to have a new iPhone every single year, this is the best way to do that," Schiller said of the new program. "And it starts at just $32/month."
It's like the installment model to which most wireless companies have shifted after long subsidizing the full cost of new devices. Apple's deal allows for a much quicker turnover, saving customers six months to a year on waiting for the latest phone. (Actually, industry analysts say the average upgrade time has stretched to more than 26 months.)
It could lead more people to kick their cell service to the curb, since they'll be presented with wireless plan prices when picking out their new iPhones.
