Verizon Wireless Offers iPhone 6 Free Trade-In Deal, But How Are Sprint and T-Mobile Competing?

Verizon Wireless knows that millions of thirsty iPhone 6 fans can’t wait to get their hands on the newest Apple model, and it’s using that to its advantage. The new iPhone 6 is set to retail for about $650; but if you trade in an older iPhone model and sign a two-year contract with Verizon Wireless, you can walk away with a brand new iPhone 6 for nothing, reported The Wall Street Journal. To help you make that decision, Apple finally released a comprehensive side-by-side comparison of the new iPhone 6 on Tuesday.

But why exactly would Verizon Wireless offer up the iPhone 6 at what seems like such a high cost to them? WSJ’s tech staff explained a bit about why cell phone companies might be willing to offer up a free iPhone 6 in exchange for your business right now.

“Carriers have rarely discounted Apple’s phones until late in their cycle. The unusual moves this time reflect the intense competition in the wireless industry, which has the four national carriers jockeying to add customers in a saturated U.S. market. The hope is that people shopping for an iPhone may also reassess their choice of wireless carrier… The industry has largely shifted to installment plans for phones, which lower subscribers’ monthly service fees but require them to pay full price for their device. The margin hit is gone, and the launch of a new hit phone has become a moment to steal or lose customers.”

Verizon Wireless will, of course, follow the usual rules of cell phone bureaucracy and actually give you a $200 gift card to pay for the usual $199.99 charge you’d already pay through them for the 16 GB iPhone 6. The move puts Verizon Wireless at the top of the iPhone 6 game, but T-Mobile and Sprint have both previously stated that they would match any trade-in offer that Verizon Wireless or anyone else throws their way, reported Bloomberg.

In addition to matching Verizon Wireless’ plan, Sprint is also running an alternative option that will allow iPhone 6 users to get their hands on an iPhone 6 even if they don’t have an older model to trade, reported The Kansas City Star.

Sprint is calling its other deal the “iPhone for Life Plan” because it essentially is an offer to lease the newest iPhone to subscribers for $20 a month. At the end of two years, the customer would be able trade up to the newest iPhone, and keep paying the $20 a month.

What about you? Are you going to go with Verizon Wireless, Sprint or T-Mobile to get a new iPhone 6?

[Image via Apple]