CIRP: 55% of iPhone buyers use installment payment plan compared to 44% of Android phone buyers

Some iPhone 15 and iPhone 15 Pro users have been experiencing ongoing Bluetooth connection issues that have persisted since the new devices launched.

According to Computer Intelligence Research Partners (CIRP), iPhone buyers have come a long way from the early days of subsidized phone purchases. 

Originally, you’d pay US$200, commit to a two-year contract, and your mobile phone carrier would subsidize the remaining cost of your new phone. With iPhones locked to carriers, you really had no other choice – until you lost or broke your phone and were shocked by the full, unsubsidized price.

Today, buyers have more options, with carriers, retailers and phone manufacturers offering no-interest installment plans of 12 to 36 months. A new phone buyer can pay the full price of the phone upfront or spread it out over a number of equal payments. 

As part of these transactions, new phone buyers can usually trade-in their old phone to reduce their out-of-pocket expense. Trade-ins paired with installment purchases generally amortize the value of the old phone over the course of the installment plan, creating a de facto contract with the carrier. So the early retirement of a phone can sacrifice some of the value gained from the old phone. 

Mobile carriers have used elevated trade-in value promotions to encourage upgrading, and subtly lock in customers for the length of their new installment payment agreement.

According to CIRP, 55% of iPhone buyers report using a monthly installment payment plan compared to 44% of Android phone buyers.

Dennis Sellers
the authorDennis Sellers
Dennis Sellers is the editor/publisher of Apple World Today. He’s been an “Apple journalist” since 1995 (starting with the first big Apple news site, MacCentral). He loves to read, run, play sports, and watch movies.