New in OS X: Get MacRumors Push Notifications on your Mac

Resubscribe Now Close

Sprint Stops Offering Two-Year Phone Contracts

Sprint will stop offering two-year phone contracts to customers who are activating a new account starting today, according to an internal document procured by AndroidCentral. While phones will not be available with subsidies on a two-year contract, tablets will.

As outlined by the document, two-year contracts will still be offered to select customers on a "reactive basis". The move makes Sprint the final carrier of the four major American carriers to end two-year contracts. New Sprint customers will be able to purchase their phones through Sprint programs like Easy Pay and iPhone Forever.

In 2013, T-Mobile began the trend by announcing its Un-carrier payment plans. Verizon followed suit in August 2015 and last month AT&T announced that they would drop two-year contracts. While AT&T's implementation takes away the ability for existing customers to sign up for two-year contracts, Verizon's does not, allowing existing Verizon customers to renew their two-year contracts.

Sprint has been planning to move away from two-year contracts for a while, first announcing the move in August 2015. However, the carrier had not announced when its implementation would take effect at the time.

Tag: Sprint

Top Rated Comments

(View all)

11 months ago
This is bad news for all 12 Sprint customers.
Rating: 45 Votes
11 months ago
Should be interesting when Apple announces pricing for the next iPhone.
Rating: 11 Votes
11 months ago

Good! Apple can still say 199 etc as long as someone can get an agreement, even if only reactive
People know and love it anyway

Actually you'd be surprised how many people not only don't know, but actually believe that the iPhone in their hands only cost $199. I've had people argue that very issue with me. It's amazing but true.
Rating: 10 Votes
11 months ago
I'm glad carriers in the US finally caught up with the rest of the world.
Rating: 10 Votes
11 months ago
One more carrier about to expose the true premium prices that Apple charges. No more concealing the truth.
Rating: 8 Votes
11 months ago

It will no longer be masked at 199/299 type price points.

But they're still not putting a giant $649 price tag next to the phone either.

I noticed Verizon has replaced the old $199/$299 price tags with their new payment plan equivalencies:


I've learned that there's a surprising number of people who don't understand that those 199/299 prices aren't the full price of the phone.

The old way was paying $199 down and the rest of your phone payment was hidden inside your monthly bill. You're right... nobody knew what the hell was going on.

But the new way is showing you exactly how much of your bill is for the phone... and how much is for service. It's separate. When you talk to the salesman... they have a worksheet where they tally up the various parts of your plan (the base voice/sms plan, the phone, the data package, etc)

And if you do pay full price for a phone... or someone gives you an old phone... you're not paying for the phone every month. Only for the service.

It actually easier to understand now.
Rating: 7 Votes
11 months ago
I'm interested in what this means for future iPhone pricing. Now that everyone will see the unsubsidized price. It will no longer be masked at 199/299 type price points. I've learned that there's a surprising number of people who don't understand that those 199/299 prices aren't the full price of the phone.
Rating: 7 Votes
11 months ago

Apparently you enjoy leaving out Android phones that don't fit your Apple crapping narrative. The current "Top Flight" Android would be the S6 Edge+, which you're correct has a slightly bigger screen than the 6s Plus. Not sure who or where you're looking at, but for a comparable 64GB phone, it is the same exact price as the 6s Plus. You can argue the 32GB model is slightly better priced since Apple does not make a 32GB 6s Plus....but other than that, you're flat-out wrong.

With all due respect, you're out of your league on this. The Nexus 6P is THE premium Android device with a larger screen than the iPhone 6S+ that is also $200 cheaper.

Perhaps you didn't read the part of my statement where I said "Soon, the only manufacturers that will dare make their base models so expensive will be Apple and Samsung."
Rating: 7 Votes
11 months ago
A lot of posters screamed from the mountaintops they were leaving AT&T when they announced this same things.

Where do they intend on going, exactly?
Rating: 6 Votes
11 months ago
It's always interesting how when people see one of the carriers ending contracts some assume that knowing the true $649 price is somehow going to hurt Apple. On the contrary, this just makes it easier for Apple to sell even more Iphones.

Now instead of advertising the iPhone for $199, Apple can advertise them for $0 upfront with an asterisk about the monthly payment. This is America and the vast majority don't care how much the product costs over two years, they only care how much it costs right now to walk out the door with one. That price is now going to be $0 plus sales tax on all carriers. Lovely for Apple.

For an example of how this is already proven true, look no further than T-Mobile. They've been doing this for almost 3 years now and yet the iPhone is easily their best selling device despite consumers seeing the $649 price. "$0" is great advertising.

Now the other reason why Apple will sell more iPhones than ever is because these carrier financing plans give customers the flexibility to easily upgrade every year rather than wait the full two years. With the two year subsidy one had to pay full retail to upgrade after only a year, now pretty much every carrier offers some type of trade in program where you can give them your old iPhone and repeat the $0 financing cycle with the latest model all over again.

For me personally I can usually get around $450 for my year old iPhone when the new one comes out. That $450 is enough to cover the remaining balance owed to the carrier on the device, allowing me to upgrade each year at $0 down as well for those who like to sell their phones themselves.

Don't be surprised when we see "iPhone 7 is the best selling iPhone ever" later this year.
Rating: 5 Votes

[ Read All Comments ]