Operators Opinion

Is offering a 4-month “deposit” a smart idea for new iPhone contracts?

I have to say I was very surprised to see Orange offering a “deposit” for iPhone contract purchases. What is the point? I’ve not seen this approach anywhere else. I suppose it bridges the ‘free’ gap. Huge chunks of the UK customer base still demand free phones — so a 4-month refundable deposit could be a nice way of getting around this.

Still, if it helps encourage people upgrade from feature phones to smartphones, good news.



By Ewan

Ewan is Founder and Editor of Mobile Industry Review. He writes about a wide variety of industry issues and is usually active on Twitter most days. You can read more about him or reach him with these details.

3 replies on “Is offering a 4-month “deposit” a smart idea for new iPhone contracts?”

I imagine it makes people feel better — a lot of people shy away from anything with an upfront cost. It’s not unusual for an iPhone 4S to cost £39 or £49 upfront on many contracts — but by calling it a ‘deposit’, consumers might react differently.

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