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Verizon changing smartphone rebate plan -- by getting rid of them

Some interesting news out of Verizon this morning -- there's going to be a significant shift in how rebates are handled. As you can see above, smartphones that have a net price of $150 or higher will have no rebates. Smartphones with a net price of $149.99 and under will have $50 rebates.

Now before anybody freaks out, we're told all that means is that it'll be treated more like an instant rebate. The up-front cost of the phone will still be cheaper, but the overall price of the phone won't really change.

And, yes, we're more than happy to blame the upcoming Verizon iPhone for this, good or bad. Thanks, anon!

  • Is that good or bad?
  • Best Buy!!!!!!!
  • Hopefully, they are taking Best Buy's approach and making it an instant rebate.
  • I hope so too
  • no rebates is good
  • By the sound of it I would say good. No more paying 299 then waiting a month to get 100 back. I'm assuming now the Phone would be 199 up front? The how I'm reading it.
  • A month? I always got them back within 2 weeks or so. But yeah, getting rid of rebates is a smart move. I just hope they don't end up screwing over retailers in the process.
  • Im glad you understand how bad this will hurt the retailers. Like our indirect stores and direct stores. It will hurt alot. I don't like this move. I can see getting rid of rebates, BUT it shouldn't go down in price because of it.
  • What about the statement at the top that says all pricing requires a 2 year contract? Does that mean they are getting rid of the 1 year contract price at $70 higher than a 2 year?
  • Yea let's hope that they still offer 1-yr contract pricing. My guess is that they will do that, but not offer you the up-front rebate. So instead of $199 w/ instant rebate, you pay $370 ($270 + $100 "rebate") up front and get your $100 difference back. Basically you'd be paying $170 more up front and get $100 back in 6-8 weeks.
  • I'm guessing that means instant rebate which is a huge WIN.
  • love how it starts 'good news!' then it says were getting rid of rebates on our best phones!
  • But, it actually is good news.
  • phil, help!
  • i love how you talk like you didn't read the article
  • this is online!!!
  • If you get the phone up front for the price after rebate then this is a good thing.
  • As long as the prices for premier smartphones hover around $200-$250 out the door it sounds like a positive move.It anything it hurts BB's sales. To be fair Verizon handles rebates very quickly and have never waited any more than 2 weeks or so.
  • Should read: Smartphones with a net price of $149.99 and below will have $50 rebates.
  • Based on the screenshot, this looks to be good through Valentine's Day. It may revert back on the 15th of Feb.
  • Looks like they're just giving you more advantage to buy in store where the associate can talk your ear off about other crap u don't need.
  • love how it starts 'good news!' then it says were getting rid of rebates on our best phones!
  • If this results in higher prices, then they've lost their minds. If it results in lower prices or the same price but it goes to an instant rebate instead of mail-in, then it's a good idea.
  • Yea they probably waste money activating those Visa cards they send out. I dunno whats the point of charging $100 more for the phone then giving a $100 rebate in the end. It accomplishes nothing. Its probably because the iphone is $200 for 16gb and $300 for 32gb So if they do raise prices, there will be a lot of pissed off people. Quit licking Steve Job's balls VZW!!
  • Personally, I think they charge that initial price to inflate their initial profit margin.
  • Oh no it accomplishes a lot. From what I understand this is big business for a lot of companies. Here's why: Some people forget to fill out the rebate form, some people fill it out and don't send it in before the dead line, some people don't completely follow ALL the directions given the rebate form and some people just don't want to do the paper work and go through the hassle of getting their money back. (Filling out the paper work, buying a stamp, and going to the post office etc.) With that in mind, if thousands of people did any one of those methods above and not send in their rebate form Verizon is making a ton of extra money from customers and they don't have to do a thing. For us as consumers, the instant rebate is alot better because we don't have to fill out that stupid time consuming paper work.
  • Don't forget they can then invest $50-$100 per activated phone until they have to pay the rebate claim. Theys some smurt peeple.
  • then why stop? what you say makes sense until you really think about it. If they are making all this extra money, why stop? A business' #1 priority is to make profit.
  • An instant rebate is still a rebate! Great News! You're Screwed!
  • It's a good thing. I always order online because of the "instant" rebate. I won't have to put as much upfront. I'm surprised by this move because I'm sure there are countless people that never actually send in the rebate form, allowing vzw to keep some extra $. Now finally I can walk into the store and get the phone I want that day without having to pay extra, mail in the forms, and wait for my check.....oh wait, I mean debit card. Another scam since most don't always drain the full balance leaving a dollar or less that adds up to a big some for Big Red. Not a typical VZW move. I'm sure the iphone has to do with it, since they won't allow different pricing. Apple controls price on their products. Period.
  • Rebate??? people still use that?
    Usually when something have rebate i dont even count it... The price is before the rebate.
  • Verizon sucks anyway! But if you want to save instantly on a phone and get a better deal on the price then Best buy, Radio shack and Walmart is the best places to go for deals.
  • You guys are only half right. The way rebates work, it's not coming from Verizon directly. They sell off the rebates to an indendent 3rd party company (that's why you address the form / envelope "verizon rebate processing center" instead of "verizon wireless" directly). Basically, Verizon gives this 3rd party company all the money to pay the rebates. Yes, not all customers will claim their rebates. Whatever rebates are not submitted by the customer for a rebate, the 3rd party company gets to keep as profit. Wam bam, American capitalism at its finest.