Vodafone sets smartphone customers free

  • Vodafone offers customers choice to spread the cost of a new smartphone over 6, 12,
    18 or 24 months on a SIM-only plan
  • One in four (25%) of Australians upgrade their smartphone every 18 months or more frequently. This increases to 41% of 18-24 year olds.
  • Less than 50 per cent of consumers upgrade their smartphone every two to three years

Vodafone today announced it is giving customers the choice to buy a smartphone and spread the cost over 6, 12, 18 or 24 months.

According to a study commissioned by Vodafone, one in four Australians upgrades their smartphone every 18 months or more frequently. This increases to 41% for Australians aged 18-24 years. Less than
50 per cent of consumers upgrade their smartphone every two to three years.

“We’re introducing an alternative to the way it’s always been done,” Vodafone’s chief marketing officer Kim Clarke said today.

“We created bundles at a time when mobile phones had black and white screens. Eleven years on, the market has changed. We’ve entered an era of innovation where smartphones are constantly reinventing the terms of what they can do, so we’ve re-written the rules on how we sell smartphones to bring us closer to the needs of customers today.

“We realise for tech aficionados, two years can be a long time between smartphones. We want to help our customers who are devotees of new technology have the jump on the latest smartphones.”

With no sneaky fees, Ms Clarke says Vodafone customers simply pay Vodafone’s retail price for the phone, and pay it off over the period that suits their budget.

“Our competitors call this type of freedom a luxury and they will charge you for it, but we won’t. You pay our retail price for the phone, because we believe flexibility should be the norm, not a privilege.

“With Vodafone, you are the important one – you have the choice and control – it’s about doing things your way,” added Ms Clarke.

-ends-

Notes to editors:

Smartphone pricing information *rounded to the nearest cent

iPhone 5S, 16GB

Vodafone retail price $864
RRP $869
Contract terms

24 months $36 per month (min cost $864)
18 months $48 per month (min cost $864)
12 months $72 per month (min cost $864)
6 months $144 per month (min cost $864)
HTC One M8

Vodafone retail price $888
RRP $899
Contract terms

24 months $37 per month (min cost $888)
18 months $49.33* per month (min cost $888)
12 months $74 per month (min cost $888)
6 months $148 per month (min cost $888)
Samsung Galaxy 5

Vodafone retail price $912
RRP $928.99
Contract terms

24 months $38 per month (min cost $912)
18 months $50.67 per month (min cost $912)
12 months $76 per month (min cost $912)
6 months $152 per month (min cost $912)

Research commissioned by Vodafone, conducted by Galaxy, July 2014.

Sample of 1000 people nationally.

  • One in four (25%) of Australians upgrade their smartphone every 18 months or more frequently. This increases to 41% of 18-24 year olds.
  • Frequent (18 months or more frequently) upgrades of smartphones declines with age:
    • 38% Generation Y
    • 21% Generation X
    • 16% ages 50+ years
  • 29% of NSW residents upgrade their smartphone every 18 months or more frequently, compared to 25% in Queensland and South Australia, 24% in Victoria and 15% in Western Australia.
  • Half (49%) of Australians upgrade their smartphone about every 2-3 years
  • 15% upgrade their phone only when it is lost or broken

Reasons for upgrade

  • 40% of Australians upgrade for image reasons when their phone looks outdated or gets scratched/damaged
  • One in three (35%) will upgrade their smartphone when the mobile phone contract expires and they get a new phone with the next contract

What new smartphone features are the most attractive:

  • For Australians, the most attractive features of a smartphone are that it is easy to use/navigate/good functionality (62%)
  • A high quality camera is always popular (57%)
  • A large screen (48%) is also a significant driver of appeal
  • 45% large storage capacity
  • 42% 4G connectivity
  • 41% the size of the device
  • 36% Stylish/looks good (50% among those who upgrade every 6 months/buy latest model)
  • 29% Able to run several applications at one time
  • 26% sound capabilities
  • 16% video calling
  • 6% ability to show 3D (26% among those who upgrade every 6 months/buy latest model)