Not all good things last forever.
AT&T on Friday said it is wrapping up its free iPhone 7 deal this weekend, making it the first carrier to bow out of the fierce promotional race around the device.
According to AT&T, the carrier will end its trade-in deal for a $0 iPhone 7 on Sunday, Sept. 25. The promotion currently offers customers a free 32 GB iPhone 7 on a 24-month device installment plan when they trade in their iPhone 6, 6 Plus, 6S or 6s Plus in good condition.
AT&T on Friday declined to comment on how many customers have taken advantage of the offer.
The move will make AT&T the first carrier to drop its free iPhone deal.
Following the launch of the iPhone 7 earlier this month, all four major U.S. wireless carriers jumped to offer consumers a free 32 GB device on an equipment installment plan with the trade in of an iPhone 6 series. The offers appear to still be active at T-Mobile, Sprint and Verizon; none of those three have announced plans to end their offers.
Though AT&T CEO John Stephens said at an investor conference last week that iPhone sales were up year over year and ahead of expectations, the move comes amid concerns that the offers will put pressure on carrier margins.
According to a research note from Craig Moffett of MoffettNathanson, the return to giving away free phones a la the old carrier subsidy model could “could “wreak havoc” on reported EBITDA and margins. The promotions will also likely impact customer lifetime value, he said.
Filed Under: Carriers
