Sprint’s $1 Monthly Option for the iPhone Forever Plan



Sprint’s iPhone Forever plan

In the earlier parts of this series, we explored some iPhone financing options from T-Mobile (TMUS) and Apple (AAPL). We learned that T-Mobile’s Jump! On Demand program allows customers to get a 16 GB iPhone 6s for $5 installment payments for 18 months. However, customers must trade in select smartphone models, which include iPhone 6 and iPhone 6 Plus.

On September 25, 2015, Sprint launched a similar low-price promotional offer with a trade-in option for iPhone 6s and iPhone 6s Plus.

Article continues below advertisement

According to Sprint’s press release on September 24, 2015, “For a limited time, beginning Friday morning in Sprint branded retail stores, Sprint will offer the iPhone 6s 16GB for $1/month and the iPhone 6s Plus for $5/month with the trade-in of an iPhone 6.” In addition, Sprint is offering similar low-priced options with trade-ins for the 64GB and 128GB models of the new iPhones.

Regarding the tenure of the plan and upfront payments, Sprint’s press release noted, “$0 down at signing on a 22-month lease with trade-in or 21-month lease without trade-in, all for qualified customers.”

Pricing among peers

According to Sprint, and as we can see in the above figure, the payments for the iPhone Forever promotion, with an iPhone 6 trade-in, are lower than those for some comparable leasing and installment plans of AT&T (T), Verizon (VZ), and T-Mobile (TMUS).

Verizon’s new annual upgrade option for new iPhones

Meanwhile, Verizon added the annual upgrade option for the new iPhones on September 25, 2015. According to the company’s press release, “If you purchase either the iPhone 6s or iPhone 6s Plus with Verizon’s Device Payment option beginning Friday, September 25, you’ll be eligible to get a new iPhone every year.”

Instead of taking a direct exposure to Sprint’s stock, you may consider taking a broad-based exposure to the telecom company by investing in the iShares Russell 1000 ETF (IWB). IWB had ~0.02% of its holdings in the US wireless telecom company at the end of August 2015.


More From Market Realist