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TECHNOLOGY
Apple’s Rental Plan Will Probably be a Lease
A leasing plan makes more sense, I think
Apple apparently plans to offer iPhones on a “rental” plan in addition to the outright purchase and iPhone Upgrade plans available now. I put “rental” in quotes because I expect this to be much more like a car lease than renting a floor sander from the hardware store.
The difference is that you can often rent for a short period of time: a day, a month, whatever. A lease is a longer commitment, and I think that’s what Apple will require: at least a one-year period.
Although, I could see offering used equipment for shorter periods.
Both leasing and rentals often require a security deposit. Apple might require AppleCare+ or AppleCare+ with Theft and Loss as well, or simply charge a higher rate to cover such situations.
Credit requirements might be lower than what is now required for the iPhone Upgrade Program.
iPhone Upgrade sells you a new iPhone on 24 monthly payments that add up to the cost of the phone plus the cost of AppleCare+. The buyer must have a post-paid carrier plan with a major carrier plus good credit to qualify. A buyer can upgrade the AppleCare to include Theft and Loss. The buyer also has the option to turn in the…
