Credit: Shutterstock photoSprint Corporation (S) has rolled out a new plan for Apple (AAPL) iPhone users that wish to upgrade to the newest edition of the smart phone whenever one hits the market. With its new "iPhone Forever" plan, the carrier follows the recent trend among wireless carriers that are coming up with new plans for those who want to get their hands on the latest iPhone model as soon as they can.
With this new plan iPhone Forever plan, customers of Sprint can lease an iPhone 6 for $22 per month, or even for as low as $15 per month if they were to trade in a device. Unlike other plans, this new option gives consumers the opportunity to upgrade to the latest iPhone anytime a new model launches.
While both AT&T (T) and Verizon (VZ) have iPhone leasing options, but the plans offer upgrade options that are annual or available when the phone is paid off, respectively. Sprint's closest rival, T-Mobile (TMUS) , offers an iPhone upgrade that is similarly priced to the new iPhone Forever plan, but it is a limited- time offer.
In its advertising for the plan, Sprint highlights the cost and longevity difference between the three competing wireless companies, all of which offer similar plans to one another.
Sprint's stock jumped to as high as $4.75 after the new plan was announced. As of 3:40 PM ET the stock was trading at $4.62, an increase of 10.53%, or $0.44 for the day. Moving forward it will be interesting to see whether the new plan can increase revenues for Sprint or not, as well as if other wireless carriers will offer similar plans to that of the iPhone Forever plan.
Sprint is currently a Zacks Rank #2 (Buy) and the company's new offer could further increase the company's stock as an investment option. Investors should keep an eye on Sprint in the coming weeks to judge both the success level of their new plan as well as whether the company is worthy of investment.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
