Customers will now have the option to buy an iPhone 6 for as low as $1 on a two-year contract via Best Buy, provided they trade their iPhone 5 which entitles them to a gift card that can be used to buy the 16GB model of the iPhone 6 for just a dollar.
“Get the iPhone 6 16GB for $1 with 2-year agreement for Verizon Wireless or Sprint when you trade in a working iPhone 5 and use your trade-in gift card toward the purchase of an iPhone 6 16GB,” stated Best Buy.
Launched back in September 2014, iPhone 6 has lured millions of smartphone enthusiasts. The device is usually available on a $199 two year contract from other carriers though Best Buy’s new deal will certainly make the wildly popular device more accessible.
The latest exchange offer on the iPhone 6 is valid only till June 20, 2015, and a customer needs to sign a two-year agreement with either Sprint or Verizon to fully utilize this particular offer.
The new deal should be ideal for users looking for an upgrade to an iPhone 6 from their iPhone 5, though customers who do not own an iPhone 5 will still have to stick with the $199 two-year contract deal from Sprint or Verizon to buy a brand new iPhone 6 (16GB).
However, Best Buy is offering this new deal only on the iPhone 6 16GB version. Hence the deal might not come across as alluring to customers looking for a higher storage capacity.
Recently, AT&T axed its two-year contract plans for iPhones and replaced it with AT&T Next financing program, which is essentially an equipment installment program (EIP), allowing subscribers to pay off the cost of their iPhone over a period of several months instead of paying a discounted price on a subsidized two-year contract.
This eventually ends up in customers saving money, in the long run, as on a two-year contract, carriers often levy extra costs to make up for the loss on subsidies on smartphones.
AT&T CEO Ralph de la Vega told Re/code last Tuesday that two-year contracts and subsidies are slowly going away. “Not because we insist on it but because customers will choose it less often,” he said.