The long rumored Samsung Upgrade Program is now official in the U.K., refuting recent reports, which suggested the leasing option would begin March 11 and would be available only to consumers in Korea.
The Samsung Upgrade Program works similarly to the iPhone Upgrade Program, which Apple introduced last September. Users can purchase a Galaxy S7 or Galaxy S7 Edge handset, directly from Samsung for a deposit and 24-monthly payments. The Galaxy S7 will have a £56.90 deposit and £24.58 monthly for 24 months, while the Galaxy S7 Edge will have a £63.90 deposit and £27.60 monthly for 24 months.
The handsets are sold unlocked and will work with SIM cards from U.K carriers.
After 12 months, users have the option to return their handset in good, working condition and upgrade to the next Samsung Galaxy flagship (the Galaxy S8?). At this point Samsung will pay off the remaining balance on the device and customers will have to start a new 24-month lease for the new handset.
Unlike the iPhone Upgrade Program, the 24-monthly payments for the Galaxy S7 and Galaxy S7 Edge under the Samsung Upgrade Program includes interest of 14.9 percent per annum. If customers pay for the Galaxy S7 Edge over 24 months, they will accrue £77.82 of interest and pay a total of £646.82. If customers pay for the Galaxy S7 Edge over 24 months, they will accrue £87.40 of interest and pay a total of £726.40.
Samsung Upgrade Program also lacks the extended warranty included in the iPhone Upgrade Program. Apple’s offers with its leasing program, the AppleCare Plus extended warranty, which hardware and software support and up to two incidents of accidental damage.
As with other preorders, those who sign up for the Samsung Upgrade Program by March 10 will receive a Gear VR headset. The Galaxy S7 and Galaxy S7 Edge will officially hit markers March 11; however, handsets purchased through the Samsung Upgrade Program will ship March 8.
