Roger Fingas
Microsoft on Tuesday introduced "Surface Plus" and "Surface Plus for Business," two ownership plans that appear to mimic Apple's strategy with the iPhone Upgrade Program.
The standard option lets people buy a Surface computer on a 24-month contract, but upgrade after the 18-month mark as long as they're in good standing, return their previous computer, and sign up for a new 24-month plan. There's also 0 percent APR unless someone takes longer than 24 months to pay, at which point the APR jumps to 19.99 percent.
Shoppers have to sign up for Plus through microsoft.com or a Microsoft Store, at which they get a year of free support. An extended Complete service plan costs extra.
The Business plan comes with Complete for Business, and offers a number of other perks, such as the ability to add multiple devices to a single plan — including the 55-inch Surface Hub. Customers can choose from 18-, 24-, and 30-month plans, and upgrade as quickly as 12 months on a 24-month contract, or 18 months on a 30-month term. Devices can be added or removed midstream.
For an extra $8.25 per user, per month, the Business plan also offers Office 365 for Business subscriptions.
The iPhone Upgrade Program — launched in Sept. 2015 — costs at least $32.41 per month under a two-year contract, but includes a new iPhone every year along with an AppleCare+ warranty. Like Surface Plus, subscribers are required to trade in their old device when they upgrade.
Microsoft has largely abandoned the phone business, but is more directly competing with Apple's Macs by way of the Surface Laptop, the Surface Pro, and to a lesser extent the Surface Book and Surface Studio. There is no equivalent "Mac Upgrade Program."
Charles Martin
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21 Comments
This is a good idea for PCs. So what if they copied Apple.
Considering they control the license, which in fact costs them nothing, and their are in a monopolistic position, this will undoubtedly wind up in court in the EU at least.
They're updating their logo too:
Glad to see this being adopted for CE, but iPUP is a better program. You get to upgrade after only 6 months from your start date and after 12 payments. I also can't find any APR jump if you go over the 24 months. It sounds like you'd just delinquent if you miss your Citizens Bank payments.
This may be confusing. If you payoff the device—which you have the choice to do any time—you aren't required to hand in your device when you sign up again for iPUP. It's yours free and clear. I assume it's the same with MS' program.
Lots of misconceptions about the service and too many assumed entitlements for simply being offered an additional payment option.
And maybe Apple is the first to offer this on mobile devices, but they certainly aren't the first to offer this sort of program.