All major U.S. carriers propose various equipment installment plans that all users duly appreciate. One of the main reasons of the plan’s popularity is that users don’t have to spend money to purchase the device as they have a possibility to use smartphones they want when they sign a contract for two years.
On the one hand, the retail cost of the device itself is surpassed and clients of these plans pay more for their devices, however, they take an advantage of the plan as it help to reduce upfront costs. Taking into consideration the growing popularity of this plan, analytics believe that by the end of 2015 four largest carriers will spend more than $37 billion there. More than that, judging from the statistics provided by the companies, Verizon, T-Mobile, AT&T and Sprint tend to finance in devices more in the last three months of the year.
Simple Choice is the most popular plan of T-Mobile and it provides free equipment installment plan option. That is why T-Mobile backs almost all mobile devices. Verizon funds 25 percent of their phones and Sprint – 46%. AT&T is said to spend 45% on their smartphones.
In the past, companies proposed the devices with discounts as they earned money mostly with help of their contract plans. Today carriers have to make themselves safe that they will not lose money in case if customers won’t pay a full price of the device.
The analytic reports state that AT&T, T-Mobile, Verizon and Sprint are going to raise the investments to the EIPs by $13 billion, that means that in 2017 the number of financing will reach $50 billion. It seems that the financed sales of the mobile devices will be even more popular, especially in light of possible development of securing plan that will protect carriers from any possible loss connected with EIP.