Samsung Planning Phone-Leasing Program

Report: Samsung Planning Phone-Leasing Program

Watch out, mobile carriers. Rumor has it Samsung is following Apple's lead and planning its own smartphone leasing program.

Forbes, citing an unnamed "industry executive with knowledge of Samsung's plans," on Sunday reported that Samsung could announce the new leasing program for Galaxy devices in the next several months — or even sooner.

The rumored move comes after Apple earlier this month introduced the iPhone Upgrade Program, which lets you pay Cupertino for a new iPhone over 24 months instead of your carrier. At this point, details about Samsung's leasing program are scant, but Forbes says it will be "similar" to Apple's.

There's no word about exact pricing, however.

Under Apple's plan, you can trade in your iPhone for a new one after the first 12 months of payments, at which point the plan resets and you will start the monthly payments over from the beginning. If you choose not to upgrade, then you own your device after 24 months and are free to keep it or sell it. If, after the 24 months of payment, you want a new iPhone, you can keep the paid-off device and sign up with the upgrade program for a new device, starting the 24-month cycle all over again.

Cell phone carriers have for years subsidized pricey smartphones in the U.S. by locking customers into two-year contracts. But carriers are now moving away from that model, potentially threatening sales of expensive iOS and Galaxy devices, so Apple and now apparently Samsung are taking matters into their own hands with these new phone leasing programs.

Apple's iPhone upgrade program is competitively priced with carrier plans, so long as you remember it includes the cost of Apple Care. PCMag deemed it a "solid choice for anyone who doesn't have a two-year contract as an option for their carrier."