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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.

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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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