Boston, MA 09/11/2014 (wallstreetpr) – Communications service provider, Verizon Communications Inc. (NYSE:VZ) has joined others in not only luring the customers but also retain its subscribers with an attractive offer of trade-in. Will the company succeed in its efforts to attract customers? Other major telecom operators have also announced similar announcements to retain customers and also make the most.
It was quite clear that every telecom operator has decided to take advantage of the latest launch of Apple Inc. (NASDAQ:AAPL)’s iPhone 6. Almost everyone has come up with a plan to offer iPhone 6 to its customers by adopting different methods. Therefore, the success of attracting customers by various telecom operators depend on the attractive package since there were already fears of removing unbundled services. Also, the financing pattern might force subscribers to pay more for the device in the end.
Free iPhone 6
Verizon Communications would provide its subscribers with a trade-in offer wherein a customer can replace their iPhone with a free iPhone 6 subject to the customer agreeing for a two-year contract, Reuters reported. Accordingly, subscribers, who opt for trade-in with their iPhone4 and 5 series in working conditions, would get a gift card of $200 to pre-order the 16GB version of the fresh model, iPhone 6 that has a starting price of $199. However, Verizon Communications Inc. (NYSE:VZ) clarified that the offer would not be applicable to iPhone 6 Plus.
The telecom service provider has been hesitant in jumping into financing of equipment compared to its rivals. Therefore, its promotion could be interpreted as its attachment to its older contract model that forces customers to stay with the service provider for a fixed term. However, JackDaw Research analyst Jan Dawson believes that this kind of promotion would create more loyalty towards the device than the service provider. The analyst also said that the move could prevent churn.
Others Join
The launch of iPhone 6 has forced other operators to join the race in offering the smartphone bundled with other offers. For instance, Sprint Corporation (NYSE:S) has unveiled a fresh $50 unlimited plan clubbing with iPhone 6, according to Zacks. The company also offered 16GB iPhone 6 of the basic model with $20 a month plan for 24 months.
However, T-Mobile US Inc (NYSE:TMUS) has gone a step further and said recently that it would not mind in beating the offers made by other big carriers and offer customers with a $50 credit.
