Scalper1 News
Wireless firms have stepped up marketing for Samsung’s Galaxy 7 and Galaxy S7 Edge, which may be the hottest-selling smartphones until Apple ’s ( AAPL ) iPhone 7 hits the market, likely in September. Samsung unveiled the Galaxy 7 devices at this week’s Mobile World Congress in Barcelona. How consumers pay for smartphones in financing plans sets AT&T ( T ) and Verizon Communications ( VZ ) apart from T-Mobile US ( TMUS ) and Sprint ( S ). For consumers, leasing and monthly installment plans can be similar, especially for those that upgrade and trade in their devices every year. Whether wireless firms are using leasing as opposed to installment plans in promotions, however, brings about changes in accounting that impact earnings and revenue recognition. Sprint on Sunday introduced its “Galaxy Forever” leasing program , similar to an offering the wireless firm launched last year for Apple iPhones. While Sprint is offering the Galaxy S7 and S7 Edge through both installment and leasing plans, T-Mobile’s near-term marketing focus leans toward monthly installment plans, analysts say. AT&T and Verizon both offer only financing plans with monthly installment payments for iPhones and other devices and do not yet offer phone leasing plans. AT&T and Verizon will apparently stick with that strategy for Samsung’s Galaxy 7 devices. However, some analysts speculate that AT&T or Verizon will begin to offer leasing plans to coincide with the arrival of Apple’s iPhone 7. Both leasing and installment plans make it easier for consumers to upgrade devices. With leasing, wireless firms retain ownership of devices. When consumers turn in old phones, wireless firms sell them into the second-hand market. Verizon will offer a $100 credit to customers that buy the Galaxy S7 and S7 Edge, according to a Wireless Week report. T-Mobile, meanwhile, is offering customers who preorder the Galaxy S7 or S7 edge a free Samsung VR headset and a free year of Netflix. Scalper1 News
Scalper1 News