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Verizon is offering the iPhone 6 with nothing down thanks to its Verizon Edge program, but is Verizon Edge really a good deal? In this article, we will compare Verizon Edge and Verizon’s traditional two-year contract to help you decide which way to purchase your iPhone 6 or iPhone 6 Plus.
So what’s better? The Verizon Edge or Verizon Contracts? That answer completely depends on how often you plan on upgrading, how much cash you have on hand and how much data you need. It also depends on if you want to be married to Verizon for the next two years or not. Read on for the full explanation.
Note: Visit Verizon.com’s iPhone 6 order page to experiment with pricing options yourself as pricing and incentives may change.
Update: As of July 2015 Verizon no longer offers the Verizon Edge program. Instead, the carrier now offers a Device Payment plan. While the Verizon Device Payment option is similar in some ways to the Verizon Edge program, there are some key differences. You can read more about the changes here .
Traditionally, wireless carriers have sold iPhones and other devices far below full price. In the case of the iPhone 6, Verizon pays a $450 subsidy to Apple every time it sells an iPhone. That means the $199 iPhone 6 starting price is actually quite a deal, but there’s more to it than that. Obviously, Verizon isn’t paying subsidies out of the kindness of its heart. Instead, it builds the $450 into subscribers’ contracts, though there isn’t a separate line item for it. One problem with this model is that subscribers generally have to pay early termination fees if they chose to switch to another carrier or cancel service. Those who want to upgrade to the latest and greatest phones before their contracts expire generally have to pay full price for new iPhones.
Verizon Edge is an example of a program that separates the iPhone 6 purchase from traditional two-year wireless contracts. Instead,
Verizon Edge agreements last for 20 months and allow users more flexibility when upgrading. Rather than offering phones for $199 (subsidized price) or $649 (full price). Verizon sells the device to you for full price ($649), but spreads the payments out over 20 months. To partially offset the increased cost, Verizon offers a $15 monthly credit for plans that include up to 8GB of data per month. It offers a $25 monthly discount off 10GB and higher everything plans. Verizon also waives its $35 upgrade fee on Verizon Edge plans. Verizon Edge customers can cancel their Verizon service at any time so long as they continue to pay off the device or pay it off in a lump sum.
After 60% of a phone’s price is paid off with the monthly installments, Verizon will allow its customer to turn it in and upgrade to a new phone with no additional fees. The old iPhone does have to be in good working order and customers lose the opportunity to resell it for more than the total of the remaining payments. Users will have to sign up for new 20-month Edge Agreements each time they get a new iPhone.
Verizon really wants to get rid of individual contracts and severely limits individual plan subscribers’ options. In fact, there’s only one option available right now: 2GB of Data with unlimited talk and text for $60 per month. If you want more or less data you need to sign up for a MORE Everything plan. With MORE Everything plans you pay for a shared bucket of data and can add lines for $40 per month. Verizon clearly wants to make it easier to tempt people into adding lines for their kids and relatives so they can sell as many lines as possible.
If you don’t have $199 or more to buy a new iPhone 6 for you or a family member you may be wondering if the Edge program is a good deal or not. Here’s how it breaks down:
Verizon EDGE vs Verizon Contract Pricing