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Question DetailsAsked on 5/29/2017

Why doesnt verizon let us upgrade phone for free anymore?

Last time I was due to upgrade I just paid tax and got one of the phones they offered. Now need has to pay full price.

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1 Answer


Several reasons:

1) most people now want expensive phones - the previously commonly $100-250 phones have gone by the wayside, plus everything they offer now is smart phones, no simple flip/clamshell phones - so the phone cost is on the order of $800 or so commonly - if they comp that over a 24 month contract that is $33 credit per month - getting into the range of what you paying for the phone service itself. In fact, when we moved over to Verizon at the end of last year, the credits they gave us to changeover plus a promotional deal on the phones themselves ended up wiping out not only the phone cost but also the standard monthly plan charge for 2 full years - so we got the service for 2 years at $20/month per phone (plus taxes). Those deals are no more, needless to say.

2) because of the popularity of the brandname smart phones, the manufacturers like LG, Samsung and Apple don't have to cut major volume discounts with the phone companies to sell millions of phones at each new release - so they have stopped giving massive $-off discounts to the phone companies.

3) they are spending $$$$ on mergers and acquisitions and on buying spectrum at billions of $ per purchase and on upgrading their systems to 5G wireless, and there is a lot of competition for wireless customers, driving their revenue per customer down (especially with the Unlimited plans) and their costs way up - so they just cannot afford it anymore.

We got new phones at the end of last year and were told that the free Samsung smart phones they gave us with a 100% purchase credit over the 24 month contract were the last promotion of that sort - everything in the future would be full price for phones, and they will try to be competitive with the competition by promoting and cheapening the Unlimited plans and by reducing monthly fees insteadof giving away free phones. A MAJOR part of this change in billing structure was going back to (for the most part) Unlimited usage plans, which were more of a competitive factor to customers than paying for their phone or free upgrades every 2 years.

Note they do a newly more fairly aggressive pricing structure on turning in your old phone for a credit.

Answered 3 years ago by LCD

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