Carriers Should Offer 36-Month iPhone Contracts for Higher Priced Models, Says Analyst

Before the Friday on-sale date for new iPhones, Apple loyalists were divided over which iPhone model to upgrade to, and that’s a “mixed blessing” for Apple, said NPD's Eddie Hold in a blog post. Data from a CivicScience Sept. 12-19 survey showing a relatively balanced split of iPhone purchase intentions -- 25 percent for the iPhone X, 25 percent for the 8, 29 percent for the 7 and 21 percent for earlier models -- shows brand loyalty, said Hold. But older models are going to “struggle, over time, to keep up with the demands of the latest apps and features,” resulting in a user experience that’s not as “slick and smooth” as with more recent models, he said. Hold called that an opportunity for carriers to lure customers with 36-month installment plans. “Not only does this make the purchase more palatable to the consumer, but it also helps the carrier to retain the consumer for a longer period of time,” said the analyst. It’s harder for a customer to switch carriers “when your device isn’t paid off."