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Apple Inc. (AAPL) Shows Samsung How to Kill Wireless Carriers

Samsung vs Apple (AAPL)

Samsung plans to borrow yet another page from Apple Inc. ’s playbook. The firm plans to introduce a program to lease its flagship Galaxy phones to US users. The plan sounds very similar to the one introduced by Apple a few weeks back, says a report Forbes, citing industry executive familiar with Samsung’s plans.

Similar to Apple’s plan

It’s been just two weeks since Apple unveiled a device upgrade program for users interested in buying the new phones –iPhone 6S and iPhone 6S Plus – but not willing to agree to a carrier contract. Under this new program, the users will be able to upgrade to a new iPhone every year in return of a monthly fee. Though Apple will still be offering iPhones to users ok with two-year contracts, this is the first time Apple Inc. has offered a device upgrade program.

The wireless operators are moving away from the usual two-year contracts and the device subsidies that come with such plans. This has given birth to leasing programs backed by smartphone makers. T-Mobile  ended the contracts around two years back, becoming the first major US carrier to make such a move. Verizon also recently said it is doing away with the two-year contract for new users. Now, Carriers have started promoting no-interest plans for premium phones that come with hefty price tags.

Samsung’s leasing program could be unveiled in coming few weeks or may be sooner, the report said. As of now, there is no comment from Korean firm on the matter.

Samsung loses to Apple

Copying Apple has not been good for Samsung Elect Ltd , if we consider the patents lawsuits that two have been involved in. Previously also, the firm has been ordered to pay damages to Apple, and now again it lost a key lawsuit to Apple.

Samsung lost the lawsuit against Apple over the “slide to unlock” feature on touch-screen phones. A US court ruled that the patent breached by Samsung has negatively affected Apple sales, and it sent the case back to a California federal court. “Samsung can effect the removal of the patented features without recalling any products or disrupting customer use of its products. Apple Inc. has not attempted to expand the scope of its monopoly,” the US court said.

Previously, the US district court for the northern district of California held that Samsung had not infringed Apple’s patent intentionally. Despite the new ruling, industry experts believe it will not impact Samsung’s sales much as the Korean firm has not been using this feature in its latest phones.

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Adam Green is an experienced writer and fintech enthusiast. He he worked with LearnBonds.com since 2019 and covers a range of areas including: personal finance, savings, bonds and taxes.

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