Samsung is planning to launch a program that will allow United States consumers to lease its line of Galaxy smartphones, in a plan similar to Apple's iPhone leasing program. The electronics giants' executives told Forbes that the new program could start within the next few weeks.
Samsung's announcement was made a few weeks after Apple unveiled its device upgrade program. It allows customers to purchase a new "unlocked" iPhone 6S or iPhone 6S Plus without a carrier contract. The payment plan period ranges from 6 to 24 months, starts at $32 per month, and is bundled with Apple Care technical support, according to Vavel.
Apple customers can pay a monthly fee in order to upgrade to a new iPhone model each year. They still can buy phones via standard two-year contracts.
More smartphone makers are offering leasing programs due to many wireless carriers phasing out two-year contracts. This requires consumers to pay full price for mobile devices.
T-Mobile was the first major U.S. carrier to ditch contracts over two years ago, according to CNET. Verizon is the latest company to take that step, yet still requires customers to pay off their new phone within two years, before they can upgrade.
Mobile carriers are now advertising zero-interest payment plans for high-end smartphones. They tend to have steep price tags.
Sprint and T-Mobile also have smartphone leasing programs. The former's new plan lets customers rent a new iPhone for $15 per month, and the option to upgrade anytime.
Sprint and AT&T still offer two-year smartphone contracts. However, in addition they offer device leasing and financing programs.
Samsung has plans to release new handsets next August. However, the new financing program could still apply for the Galaxy S6 Edge Plus and Galaxy Note 5.
The Galaxy smartphone was initially launched in June 2009.