Apple Inc. (AAPL) Offers Tiny Loans to Kill Carrier Profits

Apple Inc. (AAPL) iPhone

Apple Inc. might have found another way to increase the number of iPhone 6S it will sell this quarter as it starts selling SIM-free iPhone 6S and iPhone 6S Plus devices. One month after Apple launched its new iPhones, it started selling SIM-free factory unlocked phones that are not on contract deal with carriers. The new SIM-unlocked iPhone 6S were opened up for sale on Thursday and it will set you back $649 for the 16GB version, $749 for the 64GB version, and $849 for the 128GB version.

Apple Inc. (AAPL) iPhone 6s gold

Apple says the SIM-free iPhones do not have nano-SIM cards that are locked to specific carriers. In essence, you can buy the device and choose any carrier that you prefer. More so, the fact that they are carrier-free means that you can switch carriers as you please and you can obtain U.S. international support from the device’s multi-band LTE radio. The news confirms earlier hints that Apple wants to reduce the influence of carriers in the telecoms space.

Apple reduces carriers’ influence

Apple has been watering down the influence of wireless service providers for quite and the firm’s market dominance puts the carriers in a position where they have to dance to its tune. Now, Apple is selling its phone directly without locking it down to any carrier – a move that would encourage many new iPhone buyers to buy directly from the tech firm instead of being trapped with a carrier.

Apple also offers monthly plan that will set you back $32.45 per month for the 16GB version of the iPhone 6S. The monthly payment plan also includes an annual upgrade that allows you to trade in your iPhone 6S for the next generation of iPhone after one year.

Apple’s monthly payment plan is a thinly veiled attempt to take the winds out of the sails of T-Mobile, which is offering the iPhone 6S at a mere $5 per month, and other carriers. Apple says, “If you don’t want a multiyear service contract, or if you prefer to use a local carrier when traveling abroad, the SIM-free iPhone is the best choice.”

Battery life controversy is overblown

If you are having doubts about buying the iPhone 6S because of viral tear-downs showing that huge differences in the battery life of different iPhones – Apple wants to you to know that the battery issue is blown out of proportion. Tech analysts at Chipworks seem to think that Apple’s A9 actually features one of two system-on-a-chip (SoC) circuits with as much 20% difference in battery life.

Apple Inc. has responded to the battery issue by saying the difference in the battery life of the chips used the iPhone 6S should not be a major concern. The firm says, “Our testing and customer data show the actual battery life of the iPhone 6s and iPhone 6s Plus, even taking into account variable component differences, vary within just 2 to 3 per cent of each other”.

Analysts have been full of praise for the iPhone 6S sales number and even a difference in battery life might not be enough to stop Apple from breaking its previous iPhone sales record.

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Victor Alagbe is a seasoned business and finance writer with a specialty in writing about how to invest for the long-term in healthcare, pharmacology, energy and tech stocks. His long-term focus is on stocks that provide a nice mix of growth and income. For the short term, he passionately writes about trading stock options for the excitement and leverage that stock options offer.


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