Since T-Mobile has done away with conventional two-year contracts it offers customers two options when they go in to purchase a device. Either pay the full cost upfront or opt for T-Mobile’s equipment installment plan. Its essentially an interest free loan on which you make equal payments for 24 months. That way users are free to upgrade whenever they want under the carrier’s Jump program without having to wait for them to be eligible for an upgrade. This works well for smartphones but will it be a hit for accessories as well? Apparently T-Mobile thinks so.
Once accessories for your phone meant covers and chargers, now they include pricey headphones and smartwatches that cost as much as a mid-range smartphone off-contract. Would it be great if you could break down the cost of a $300 smartwatch over a number of months just so you don’t have to drop all that money at once?
Folks at TmoNews have received a leaked internal memo from T-Mobile which reveals that the carrier will expand the equipment installment plan to cover accessories as well. No specifics have been provided in the memo, for example how many monthly payments will customers have to make for accessories. For smartphones and tablets EIP’s duration is 24 months.
If it sticks with that same duration then a $300 Samsung Gear 2 smartwatch would cost users $12.50 a month, they’ll have to pay that amount for 24 months. The benefit for customers here is that they get to walk in a store and come out with a new smartwatch without having to put any money down.
The memo also instructs employees to push accessories on customers, quite evidently the carrier wants to see more of them. Most would shy away from having to pay a few hundred dollars upfront but imagine how many would buy that expensive pair of headphones or a smartwatch when they don’t have to pay upfront.