Verizon changing upgrade and warranty policies in preparation for the iPhone?

verizon-iphone3

A tipster dropped us a note to alert of us some upcoming changes to Verizon’s upgrade and warranty policies that could indicate the impending arrival of the Verizon iPhone. According to our source, Verizon may be ending its New Every Two program effective January 16th. The New Every Two program is available to customers with a minimum monthly calling plan of $34.99 and have fulfilled 20 months of a two-year contract.

The program offers a $30 or $50 discount on a new phone when you sign a two-year renewal. Our source claims that contracts signed after this January 16th date will no longer be eligible for the New Every Two promotion and existing customers who become eligible for the New Every Two discount will have six months to take advantage of the promotion or lose their discount.

Verizon is also reportedly ending its annual upgrade option, according to the tipster. This annual upgrade options is a promotion that lets customers upgrade at promotional prices after they have fulfilled one year of a two-year contract. Customers eligible for this early upgrade must sign up for My Verizon and have a minimum calling plan of $49.99. According to our source, Verizon will not replace either of these promotions. Once these two upgrade deals are gone, all customers must serve out 20 months of a two-year contract before they are eligible to upgrade at promotional prices. No exceptions and no extra discounts will apply.

Our source also claims that Verizon is changing its warranty program. Currently, managers could, at their discretion, overlook any physical damage and swap out one handset model for another (ie, a defective DROID 2 for a DROID X). Starting next month, customers may be charged from $150 to $300 if the defective handset includes physical damage such as external scratches when it reached the warehouse. The fee assessed to the customer is dependent on the type of handset returned for warranty purposes.

Why all these changes and why now? Well, our source assumes these changes are being made to help Verizon prepare  for the launch of the CDMA iPhone. Once the iPhone lands, Verizon will have strict upgrade policies in place so customers will not be able to upgrade early or receive an extra discount for serving out their contract. The warranty changes are also being made to prevent folks from swapping out handsets with the hope of receiving an iPhone or swapping out an iPhone needlessly due to a problem like scratches on the semi-delicate back glass face. None of this confirmed but it comes from a reliable source and it does sounds reasonable, no?

  • http://pulse.yahoo.com/_LOSE6Q7WAHTOFJXWTSJNGXVBFY Angelo

    NO Big surprise. Verizon is a profit company (let’s not forget that) that must answer to their shareholders by creating ways to maximize their revenues (dividends) NOT loses (obviously). Plus, if you look at their inventory, 3 out of 4 phones is a smartphones with the price value averaging $189. As they add more smartphones (i.e: Verizon iPhone) to their devices lineup, they will eventually change their contract terms to their benefits. I don’t care what anyone believe: ‘Customers are ALWAYS the loser”. Looking forward to own the iPhone on the Verizon network. No way I was going to get it on At&t, most unreliable network in the country. It’s clear the Apple does not like the bad rap they’ve been getting from iPhone users on at&t.

    • NETworkSpeed

      WOW ANGELO LOOK AT THE POST ABOVE, YOU ARE THE ONLY LOOSER THAT BAD MOUTH’S AT&T. I GUESS IT WILL JUST TAKE YOU A LITTLE LONGER THAN IT DID MOST OTHER PEOPLE TO REALIZE THAT AT&T IS SPEEDING RIGHT PAST VERIZON, (phones, coverage, broadband, wireless, wire line, speed, network hand-off, etc.) I CANT WAIT TO SEE YOUR POST ONCE YOU REALLY GET YOUR VERIZON iPhone AND YOU GO FROM A LTE AREA INTO A 3G AREA. PLEASE STAY ON THE VERIZON BAND WAGON AS IT GETS SMALLER & SMAller & smaller. QUICK QUESTION FOR YOU, IF VERIZON KEEPS GETTING SO MUCH BETTER AND AT&T SO MUCH WORSE, THEN HOW DID AT&T TAKE THE NUMBER 1 SPOT AWAY FROM VERIZON OF OVERALL LOWEST CHURN IN THE PAST YEAR????? VERIZON HELD THAT SPOT FOR YEARS BUT NOT ANYMORE BECAUSE THEY ARE GETTING SO MUCH BETTER CORRECT?

      THANKS FOR YOUR TIME

      • http://pulse.yahoo.com/_LOSE6Q7WAHTOFJXWTSJNGXVBFY Angelo

        Call me Looser or pro-Verizon, whichever suit your anger (all CAPS, really! That serious … LOL). At&t, Verizon and all the others are looking to increase their market share and maximize their revenue (keep that in mind). The more customers you have, the more revenue you will generate (I am sure you’ll agree with me).
        Mobile service providers must – introduce products, – change policies, – set alliance with small carriers, – acquire other companies, etc … to meet those goals.

        The point that you’re missing here is the Warranty policies change is just part of the game plan. You and I know that the warranty policies change will not have any major impact on ‘current’ or ‘potential’ customers. Trust me, they have employees on the payroll just to do research the pros & cons of that. LOL! They’ll never do anything that will make them loose their customers. They spend more to acquire new customers verse retaining existing customers (that’s why current customers don’t qualify for new customers offer).

        Keep in mind: at the end of the day, it’s about market share, revenues, stocks, dividends NOT about who has the best network, phones or warranty policies. CEO’s don’t see around in the board room to discuss their network or phones instead they talk strategies that will impact their shares (a.k.a shareholders). The warranty policies changes are irrelevant.

        Note: Put your money were your mouth is: VERIZON COMMUNICATIONS INC. (VZ T: $35.97) , AT&T Inc. (T: $28.79)

  • http://www.facebook.com/profile.php?id=1324502085 Jordan McMahon

    I call bullshit on this. I call bullshit so hard.

  • Derail Doax

    LOL. The iphone ruins everything again! I hope Sprint or Tmobile don’t get the iphone. It would probably screw them up too.

  • G35holdem

    Verizon employee here and this article doesn’t make any sense. I have heard nothing about the discontinuation of the New Every Two credit or the Annual Upgrade program but I guess either or both of those things are possible. But, the last part of the article is completely untrue. Verizon does not swap out broken devices for another model whether the damage is covered under the warranty or not. If your phone has physical damage (therefore not covered under warranty) your options are to buy a certified preowned phone which costs anywhere from $69 to $400 depending on model you choose or to go through insurance and get a refurbished replacement of the exact model you already own for the deductible ($39 or $89). Also, Verizon does not waive those fees under any circumstance. As a matter of fact, Verizon used to allow people to switch to a new model if they had 3 broken phones of the same model but they have since discontinued that option as well.

    In my opinion, this is what will happen…

    The annual upgrade option will continue (if for no other reason than AT&T still has that option).

    The New Every Two program could be discontinued altogether, but what is more likely is that people will not be able to use the credit towered an iPhone because of Apple’s strict restrictions on the pricing of their products (Verizon can’t even discount an iPad accessory a penny).

    Hope this info is helpful.

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