Sprint's new 'Loyalty Service Credit' will let subs lease an iPhone 6 for $5/month

Looking to goose its sales of Apple's (NASDAQ: AAPL) latest iPhones even more, Sprint (NYSE: S) is offering a $15 monthly service credit that drops the cost of leasing an iPhone 6 down to $5 per month and an iPhone 6 Plus down to $10 per month.

From Oct. 13 through Jan. 15, Sprint said that eligible and qualified customers who lease one of the new iPhones through its "iPhone for Life" leasing program will get a $15 monthly "Loyalty Service Credit."

Under the iPhone for Life program, individual customers pay $20 per month for a 16 GB iPhone 6, instead of $30 under normal financing. The 16 GB iPhone 6 Plus costs $25 per month under this program instead of $35 under normal financing. If a customer wants an iPhone with more internal storage they will pay more per month. The leasing program applies to families as well. Customers pay the monthly leasing fee on top of the service plan.

After 24 months customers can turn in their existing leased iPhone 6 or iPhone 6 Plus and lease another phone with zero down at signing; purchase the leased iPhone 6 or 6 Plus; continue leasing the phone on a month-to-month basis; or, when the lease ends the customer can return the device in good working condition and terminate their service.

Sprint said that the iPhone for Life plan and credit is available to existing Sprint customers who want to keep their existing Unlimited My Way, My All-in, Simply Everything and Everything Data rate plans. The service credit is applied within 2 invoices of activation.

When Apple released its new iPhones in September, Sprint launched a $50 monthly unlimited plan for customers who purchased one of the phones and paid for their device in monthly installments through Sprint's Easy pay program.

Sprint argues that an existing Sprint customer can save $530 over 24 months compared with similar device financing offerings from Verizon Wireless (NYSE: VZ), AT&T Mobility (NYSE: T) or T-Mobile US (NYSE:TMUS). In that light, Sprint's new financing credit is likely a way to decrease its churn and increase its subscriber numbers as competition heats up ahead of the holiday shopping season.

For more:
- see this CNET article

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