Samsung has taken into its own hands handset subsidization, confirming and launching the rumored Upgrade Programme for the UK. The device leasing program arrives ahead of the company's latest pair of flagship phones.
Samsung is working through a third-party financier, Close Brothers Limited's Pay 4 Later Limited. Consumers in the UK can drop a 10 percent deposit on a Samsung Galaxy S7 or S7 edge and pay the rest of the price over a 24-month period. After 12 months of on-time payments, a lessee will qualify for an upgrade to the latest Samsung Galaxy handset.
"Once we have received, inspected and confirmed the eligibility criteria we will settle the outstanding balance on your initial finance agreement with Close Brothers Limited on your behalf and you will not be required to make any further payments under the agreement. You must sign up to a new 24 month finance agreement," Samsung says.
Beyond making payments on time, lessees will need to take care of their handsets. Badly damaged handsets will disqualify consumers from upgrading. Old phone s will need to power up and charge when attached to an approved Samsung charger. The screen must also be functional with no cracks in it. The keys and buttons, Wi-Fi, SIM reader, memory card slots, speaker and microphone must all still be functional. Also, the phones must be free of water damage.
Samsung will accept handsets with one or two light minor scuffs or scratches, and beyond that may require a surcharge of up to £150 (more than $200).
While consumers can upgrade after 12 months of on-time payments have passed, they aren't required to do so. They can simply continue to pay off their handsets.
To avail of the program, customers will have to deposit £56.90 ($81) and pay £24.58 ($35) monthly for the Galaxy S7. For the Galaxy S7 edge, they will need to give the same amount of deposit but with a slightly heftier £27.60 ($40) monthly payment. It's worth mentioning that the Galaxy flagships currently available under the program include only the 32 GB variants, but both in black and gold colors.
The Samsung Upgrade Programme for the UK only covers the cost of the handset, so consumers will still have to work out cell service details with a wireless carrier. And unlike wireless carriers, the monthly installment for Samsung's upgrade plan are subject to a 14.9 percent fixed APR.
The upgrade program's arrival in the UK is expected to be followed by its delivery to Samsung's homeland of Korea. There's no word if or when it will arrive in the U.S. or the EU.
For now, the only handset maker offering such an upgrade service to consumers in the U.S. is Apple, which announced its iPhone upgrade plan last fall, receiving adulation for doing so. The company also recently launched its Trade Up With Installments program last February.
