Thursday, May 31, 2012

Cricket / Leap Launches First Contract Free iPhone 4S and iPhone 4.

Cricket / Leap Launches First Contract Free iPhone

Pre-paid smartphones market (and other phones) is a fast-growing field dominated by Google's (GOOG) Android based phones. I just ordered a contract less Google Galaxy Nexus to be my one of the three phones.
But looks like Apple too will be entering the contract less pre paid market through Cricket network owned by Leap Wireless (LEAP). Leap / Cricket is the sixth US carrier to get iPhone. Cricket customers or would be customers in US will be able to get the country's first pre-paid iPhone beginning on June 22. Pre-sales will begin online June 15. But be prepared to pay nearly full price for the device, starting with $500 for the 16 gigabyte iPhone 4S or $400 for the two-year-old iPhone 4.
Verizon, Sprint and AT&T charges up front fee of $200 for the 16 GB iPhone 4S and $100 for the iPhone 4. I paid $399 for the Google Galaxy Nexus. I will be using it with an existing contract.
Cricket / Leap was very happy get iPhone on their shelves;

 "Our customers want the best products available and we are excited to bring iPhone to our pre-paid consumers with an industry leading $55 per-month service plan, Launching iPhone is a major milestone for us and we are proud to offer iPhone customers attractive nationwide coverage, a robust 3G data network and a value-packed, no-contract plan." said Doug Hutcheson, president and chief executive officer, Leap Wireless International, Inc..

The Cricket's iPhone will be contract-free and will cost $55 a month, for unlimited talk and text. There is also a sort of "unlimited data," which will start slowing down after monthly usage reaches 2.3 GB.

Cricket is estimating ($70 - $80 month) average iPhone customer under contract to pay pay $2,775 over the course of two years, which includes the cost of the device, $200 or $100. Cricket might attract users with it's estimated cost of $1719 over the same period, which is actually more than $1000 less.
But the problem will be the coverage. If the coverage that iPhone supports increases, customers will certainly follow.
Press Release


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