“Verizon officials have confirmed what SmartMoney was told by Verizon sales reps at a number of stores around the country: The company is ending its popular “New Every Two” program, which offers Verizon subscribers a credit of $30 to $100 toward a new phone every two years. As of Jan. 16, the company will stop offering the credit to new customers and won’t re-enroll current customers in the program after their next New Every Two upgrade. The cell carrier is also putting the brakes on its permissive early upgrade policy, store representatives confirmed,” Kelli B. Grant and Jonnelle Marte report for The Wall Street Journal.
“All of this adds up to more out-of-pocket costs for Verizon customers. With the New Every Two perk, a longtime customer with a $100 credit could get the iPhone 4 for $99.99 – half off its new-subscriber price of $199.99. When the program ends, new subscribers will no longer be eligible for those discounts,” Grant and Marte report. “The move comes as millions of cell customers are expected to jump to Verizon, now that the company has the highly-sought iPhone 4. And none of them will be able to squeeze in before the company changes its policies, because the iPhone won’t be available for new customers until Feb. 10.”
Grant and Marte report, “One bright side, industry-watchers say consumers can expect the Verizon iPhone to spur more competition, which ought to improve networks – and pricing.”
Full article here.
[Thanks to MacDailyNews Reader “James W.” for the heads up.]
Oh yeah, verizon is NOT the savior. Seems like a lot of folks forgot about that.
But if AT&T doesn’t work where you live, it’s still a Good Thing.
I don’t think it really matters…. Won’t stop me from getting my iPhone next month, even though I have two 3 month old blackberries.
Looks like Verizon went from nickeling and diming it’s customers to $10s and $20-ing them.
Lower pricing won’t apply to the cost of the iPhone, just perhaps to mobile provider plans. We’ll see, but I don’t expect a significant difference or drop in price from either carrier.
Good by verizon!! Last straw!!!
Let the price collusion begin…
just my $0.02
Please excuse my dumbassness, but does this mean the $50 credit I’m eligible for right now (waiting to get the iPhone) will go away and I won’t get to use it? If I get a new phone right now I’ll get $50 off because my contract ended Jan 1.
I think any loss to U.S. consumers will be more than compensated by competition between Verizon and ATT for iPhone customers. Apple no doubt prohibits pricing discounts or rebates on iPhone itself (although it appears existing Verizon customers can use “new every two” to get a discount one last time). But they will probably offer other incentives, such as free iPhone accessories or “get three months of service for free” (or at a special lower rate) type offers.
If the two carriers are battling for iPhone customers with such incentives that can only be claimed by signing up at their corporate stores (online or physical), Apple may see a slight loss of profit per iPhone. Apple probably makes more profit on an iPhone if it is sold directly from an Apple Store. If it becomes advantageous for customers to buy their iPhones from Verizon or ATT, Apple’s own stores will sell a lower percentage of iPhones going forward.
In other words, an iPhone will work better than giving people cash to stay.
Beowulf
I’d call verizon, or go into your local verizon store an ask, but the article sounds like the existing discout would apply. It just will not be renewed again.
Then again, verizon could simply change the policy te night before the launch lol.
It’s one of the reasons I left verizon, they just don’t like their customers. Beyond the money they get from them anyway..
AT&T used to have special upgrade eligibility thus foregoing your previous contract to get an iPhone when it first came out. AT&T still offers upgrade discounts when upgrading to a new iPhone.
like lemmings to the cliff.
I have service with both carriers, and if verizon does away with my credit, I will let my contract expire!
Verizon better be careful. A lot of are watching to make sure verizon isn’t as greedy as AT&T,before we come over. We might just wait for the 5G LTE before coming. It’s easy to wait when your an iPad lover and have already saved for the top of the line iPad 2.
Bastards!
Should’ve went to Sprint and T-Mobile before Verizon. Better plans and happier customers. AT&T is ok in my experience, especially their U-verse division. Love it. But VZW, I personally can’t stand there constant price rape of their customers. Bend over for them one more time, to get that iPhone. It only hurts a little bit.
mm hm
sounds like verizon
ah I’m glad I have my AT&T
Mobile carriers have always insisted that their hefty early termination fees were necessary for them to recoup the discounts offered to customers on new handsets. So what’s their excuse now for requiring new contracts (along with new early termination fees) on virtually any change that customers make to their existing contracts? Thieves and liars—that’s what the mobile carriers really are.
iPhone to T-Mobile please!
Hahaha. Stupid verizon. All for a sub par iPhone. Lame.
As a current VZW customer …
Who’s been thinking about an iPhone …
And who’s not had any ‘dropped calls’ problems with my AT&T work Blackberry….
…hmmm. Maybe if I decide to get a personal smartphone, I’ll just move my service over to AT&T.
-hh
How else is Verizon going to start sending dump trucks full of cash every month to Cupertino next month? And at first they’ll have to merge with a line of ’em bearing the death star logo on the side…the fuel costs alone will be staggering!