Sprint has announced
a new option for iPhone users or potential buyers on its network with a new program, "iPhone for Life," that allows users to rent, rather than purchase, an iPhone model and routinely upgrade it every two years by simply adding $20 per month to their existing or new plan. New Sprint CEO Marcelo Claure explained that the $20 monthly fee would be for a base model, but customers save on financing or paying full price on the device by avoiding sales tax.
"I think a product like that deserves different treatment," Claure said, adding that the new iPhone models support the company's Sprint Spark advanced LTE speeds, which he said would "a tremendous difference on our network now and in the future."
As
AppleInsider notes via
Re/Code, because the unit is rented rather than sold, financing charges and sales tax are not levied. Sprint is suggesting that renters opt for a special iPhone-only plan that features unlimited talk, text and data for $50, making the total charge $70 per month for a base model. As with other carriers, Sprint will trade in the unit for a new one every two years.
By comparison, financing a base model iPhone adds $30 per month to a users' bill, or customers can opt to buy the iPhone outright at full price. Sprint itself points out that the new rental option is the cheapest overall option compared to either the EasyPay financing or a two-year contract with comparative plans, saving users up to $575 across the 24-month period.
The new program will apply towards the just-announced iPhone 6 and iPhone 6 Plus, which debuts at retail on September 19 in the US and select countries. Sprint is accepting pre-orders on the devices starting September 12.
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