30 Jul Apple Jumps on Business Leasing Trend and You Should TooReading Time: 4 minutes
Tech moves fast. New models of phones, laptops and other electronics are continuously released; rendering their predecessors obsolete in the blink of an eye. How does a company prevent falling behind with the devices they require without perpetually needing to worry about the whole fanfare of buying and selling? By leasing the tech. Here we cover what opportunities leasing electronics offers in the insurance space.
Leasing is the New Buying
Leasing has been around for years, but has gained momentum as a business need over the last months. This trend is no doubt directly connected to the high costs of our ever more advanced devices and the fact that employees expect the very best tools to aid their productivity at work. Tech is a costly pursuit, especially in business.
Apple Launches Business Leasing
Embracing the reality that almost all Fortune 500 companies use iOS, Apple responded to a very real need in late 2018 by offering a new business leasing program for their devices. Building on their success with the iphone upgrade plan (a program wherein a customer’s iPhone is both covered by AppleCare+ insurance and is replaced with a new model annually in return for trading in their previous model), Apple’s business-specific offer allows companies to reap the many benefits that leasing tech provides on a larger scale.
It’s proven that employees perform better with advanced tech, something Apple is monetising on greatly with their new business leasing program.
A Bounty of Benefits for Business
The most interesting aspects of leasing tech, in a company’s eyes, are primarily financial and organisational. A company that invests in upgrading tech every 3 years, as is common, ties up a very large amount of capital. Leasing liberates this and permits affordable and overseeable regular payments. It also requires no upfront costs or downpayments.
In the US, the program is in conjunction with T-mobile and DLL and entails leasing iPhones for as little as $19 p/month per device (minimum 5 devices on a business account of 25+ lines financed for 24months). This equates to saving 20% off the purchase price of an iPhone or iPad (compared to purchasing with a financing plan of 24months).
In Switzerland for example, the savings are even greater. A customer leasing an iPhone Xr for 24 months saves a considerable 29% compared to directly purchasing one. It’s an appealing prospect for companies that want to upgrade their devices every couple of years anyway, as leasing also takes care of what happens to the device after its (limited) business lifecycle.
Organisationally, leasing removes the inconvenience and difficulty of selling outdated electronics and can usually be arranged to include insurance with an easy return-and-repair process in place. Take Apple’s financing and leasing options for company Macs, iPhones and iPads in France that can be arranged to include AppleCare+ insurance.
Device as a Service
In Germany, Everphone offers their ‘phone as a service’ model of business renting on Apple, Samsung and Huawei devices; with contracts by various providers and an integrated insurance protection. Acting as the ultimate middle man, Everphone takes out all of the organisational hassle. This fast growing company is targeting business customers exclusively; a further reminder that jumping onto the B2B leasing/renting trend is lucrative right now.
Companies like Everphone offer business customers the latest tech with the least hassle.
The Swiss company Also Apple offers a similar ‘use instead of buy’ model. They cleverly promote device bundles, calculated down to a price per day (e.g. the Apple Workplace Bundle that includes a MacBook, iPad, Smart Keyboard, Apple Pencil, a USB adapter and AppleCare+ for less than 4 euros per day). Also Apple’s website allows consumers to calculate their cumulative savings on completely customisable bundles in just a few clicks. This is another clear example of the innovative ways in which companies can garner new clients, as well as illustrating business renting as a very attractive arrangement.
Advice For Businesses New To Leasing
For companies considering to launch tech leasing programs of their own, it’s vital to deliver on any promises made. The right mobile operator, insurance and repair partner is crucial. For the protection side of things, i-surance presents an ideal solution within Europe. Quick off the proverbial starting blocks, i-surance prides itself on fast yet effective implementation and launch, and can adapt coverage to any situation or product. Their next-day replacement policy on mobile devices works well for time-pressured business customers, and they have their own Europe-wide network of qualified and trusted repair partners.
Business customer interest doesn’t stop at smartphones-for-rent either; there a plethora of other tech that can be leased with attached insurance policies, and there’s a market for all of it! German online stores Otto Now and Grover are merely two examples. If you’re a professional in the electronics industry, now is the time to seek out a partner such as i-surance to start creating attractive leasing offers with insurance cover for your business or residential customers; you’re both guaranteed to reap great rewards.
Get in touch with i-surance here for partnership possibilities!