AT&T CEO Believes Phone Subsidies Will Eventually Vanish
Phone subsidies and two-year contracts are on their way out the door, according to Ralph de la Vega, AT&T's CEO of mobile and business solutions. "I think it is one of those options that is going to go away slowly," said de la Vega to Recode, "not because we insist on it but because customers will choose it less often." AT&T has made changes recently to limit the availability of subsidies and contracts. AT&T partners Best Buy and Apple, for example, no longer offer customers AT&T contracts. Instead, they push AT&T Next plans, which break down the payment for phones over time. AT&T says two-thirds of new smartphone sales during the most recent quarter were via its AT&T Next plans, which clearly indicates consumers' preference when it comes to purchasing new hardware. T-Mobile was the first major carrier to break from the subsidy model with its Simple Choice plans, and now most carriers offer lower-cost service plans that are paired with monthly device payments.
Huawei's Honor 7X Available for Pre-Order Today for $199
Huawei said its Honor 7X handset will be available to U.S. consumers beginning today.
Blu Life One X3 Adopts Metal-and-Glass Design and Packs 5,000mAh Battery
Blu Products today announced the Life One X3, a mid-range handset from the unlocked phone maker. The One X3 has a curved-edge glass screen and an aluminum frame painted in matte black.
Apple Debuts Its Own iPhone Upgrade Program
Apple will let consumers lease an iPhone directly from Apple itself in a change that reflects the current dynamics in the U.S. wireless market.
Some AT&T Partners to Cease Selling Contracts
AT&T today said some of its retailer partners are going to offer only AT&T Next plans beginning June 1. These retailers, like Walmart, may have national footprints, but the change is only being made in some locations that AT&T would not name.
AT&T Confirms Plans to Ditch Contracts
AT&T says beginning January 8, it will rely on AT&T Next as the primary avenue through which customers will purchase handsets. AT&T has historically sold handsets with two-year contracts attached to the purchase, but in recent years added the AT&T Next installment plan option.
"Our customers prefer" whichever option we put them in, and if they don't like it, they can kick rocks.
The carriers will...