Samsung hopes for faster upgrades with the Access program
Samsung last week announced the availability of its new upgrade program, the Samsung Access, which is one of the most comprehensive and appealing device upgrade programs ever launched in the mobile device world. The new program allows customers to purchase a new “unlocked” S20 5G variant for a fixed monthly fee that is similar to the EIP (Equipment Installment Programs) offered by wireless service providers. Customers then have the opportunity to upgrade to a new Samsung phone at their time of choice as long as they return the initial phone in good condition. The program also allows customers to opt-out whenever they want (of course, again making sure that the phone is in good condition). Finally, customers will also receive a free warranty for the phone alongside access to 1TB storage on Microsoft’s OneCloud service.
The NPD Take:
- The uptake of the new Samsung Galaxy S20 5G series has been somewhat slow due to the high ASPs, economic downturn, and store closures. The new Access program should certainly help ease the financial concerns while accelerating the upgrade cycles, which have been around 36 months for flagship smartphones.
- The program is currently limited to customers who want to purchase an unlocked smartphone. Currently, 18% of the active smartphones in the market are unlocked devices, but awareness has been over 80% among smartphone users. The growing acceptance of unlocked smartphones offsets the “unlocked-only” limitation, but the S20 series phones are all 5G-powered, and buying an unlocked 5G phone will be complicated considering the multi-flavored 5G networks deployed by the U.S. carriers.
Apple planning to extend Apple Card financing beyond iPhones
According to reports, Apple is getting ready to offer device financing options for all Apple products, such as iPads, AirPods, and Mac computers, purchased using an Apple Card. The OEM will allegedly offer 12-month interest-free financing for iPads (plus its peripherals such as the Apple Pencil and keyboards), Macs and the Mac XDR Display monitor. Smaller ticket items such as the Apple TV, Homepad, and AirPods will enjoy a 6-month, interest-free financing instead. Notably, the carrier has been offering 24-Month interest-free financing on the iPhone purchased with the Apple Card, and users also get a 3% cashback.
The NPD Take:
- Apple’s decision to extend its financing offer beyond the iPhones will undoubtedly increase the sales of these products, but iPhones, which already are part of the financing program, should also be derivatively reaping the benefits. The extended program will attract those iPhone customers that have been purchasing their iPhones through carriers’ financing programs, and some of them will likely consider taking advantage of the iPhone financing program (plus the 3% cashback) once they sign up for the Apple Card (with the initial goal of purchasing iPads or Macs with financing)
HBO Max is data-free for AT&T customers
AT&T announced that its new HBO Max service, which has become available as of May 27, is not going to cost AT&T wireless customers any data towards their speed cap allowances. Customers on the unlimited plans with access to the new service will be able to freely stream/cast the service without worrying about reaching their data throttle/deprioritization limits.
The NPD Take:
- AT&T’s move to add HBO Max to its Sponsored Data program has immediately received criticism from a net neutrality perspective, but the industry has long moved beyond as the majority of customers are now on unlimited data plans versus the metered plans.
- AT&T’s position in this net neutrality case is unique as it owns the content rights to the new HBO Max service, but there is no common practice in the market. T-Mobile, for instance, has a similar data-free streaming policy for its customers on the Netflix On Us program. T-Mobile has an exclusive deal with Netflix, but it’s not the content owner. Another rival, Verizon, on the other hand, has a similar exclusive deal with Disney+, which is offered for free to Verizon customers on select unlimited data plans, but their data usage on the Disney+ app is counted towards their total speed cap.