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• Users will no longer need to provide carrier info at purchase
• Customers can also buy iPhone SE with Apple Card monthly installment plans
Apple Inc’s (NASDAQ: AAPL) newly launched budget smartphone, iPhone SE, is cutting the wireless carriers out of the purchasing process, bringing a change on how Americans are buying smartphones.
Anyone buying iPhone SE and choosing AT&T Inc (NYSE: T) or T-Mobile US Inc (NASDAQ: TMUS) as their wireless carrier won’t need to provide a wireless phone number and Social Security number at the time of purchase.
The “on-device authentication” feature will allow shoppers to enter that data and connect to their carrier when they power on the device for the first time.
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Usually, when a user buys an iPhone from the company’s retail store or online store, the customer provides their contact number and the last four digits of their Social Security number, which lets the carrier run a credit check and approve the transaction.
However, the process takes time and could be a barrier to closing the sale.
The new process will eventually come to Verizon Communications Inc (NYSE: VZ) subscribers as well.
Bloomberg’s Mark Gurman first reported the news.
Elevating customer experience
The change is part of an effort by the Cupertino giant to reduce the influence of carriers in the purchase process and making it easier for the customers as they won’t have to pick a network plan at the time of purchase.
Apple’s new approach would also mitigate poor customer experience as sometimes activation servers can be overloaded and buyers leave stores with their phone not activated.
Apple has already introduced eSIM technology, which allows customers to activate cellular plans from the device without using a physical SIM card.
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The company will also let customers buy an iPhone SE with Apple Card monthly installment plans.
Although the new trial of the buying process is only for the lower-volume iPhone SE, it could potentially use the same strategy with the upcoming iPhone 14 lineup launching later this year.
Picture Credit: The Guardian