As more and more US carriers start offering installment plans for smartphones usually priced by contract, an increasing volume of iPhone users could opt to upgrade their handsets sooner, according to analyst Gene Munster of financial services firm Piper Jaffray.
Installment pricing can appeal as smartphones can be purchased without any upfront charge and be upgraded earlier than the two-year period that is standard with contract handsets. Munster drew attention to these perks in a research note cited by AppleInsider.
Smartphones on installment plans are clearly growing in popularity in the US; it is estimated that, in last year’s fourth quarter, 32.6 million Americans had such smartphones, up from 21.4 million in the quarter before. Though not all owners of such devices could choose, or be eligible, to upgrade, Munster has calculated that even a small number of upgrades could result in an additional 2.9 million iPhone upgrades in 2015’s third quarter and 4.4 million in the following quarter.
These figures assume that the iPhone’s market share in the US this year is 45%; it has already been reported that, in the most recent quarter, that share was 44.1%. With the new iPhone 6S and 6S Plus thought to be just around the corner, Apple seems well-positioned to benefit from the rising popularity of handsets paid for by installment.
