See if it's worth getting a smartphone subscription. The trend is growing in Brazil.
According to 2021 data from the World Inequality Lab, Brazil is considered one of the most unequal countries in the world. The study highlights alarming data on economic disparities between classes in Brazil, with the richest 10% earning almost 59% of Brazil’s income. The concentration of capital is even greater among the very rich, with the richest 1% of the population holding 48.9% of the country’s wealth.
This level of inequality is also reflected in other areas of society, including access to fundamental rights such as health, basic hygiene and quality education. In this sense, the country faces another scenario that is equally important for the creation of opportunities: the digital inclusion gap. Continue reading to understand better.
Internet via cell phone
As the world becomes increasingly connected and undergoes rapid digital transformation, internet connectivity has become a tool for accessing training, employment opportunities and even financial services. The problem is that around 34 million Brazilians do not have access to the internet. This is what a study by Instituto Locomotiva and consultancy PwC revealed.
According to the study, the most popular Internet access device among Brazilians is the cell phone, with 991% of the population using it for this purpose. The data also shows that more than half (581%) of users in Brazil use the device as their only means of connectivity. However, given the chip crisis in the technology market and the increase in smartphone prices, there are few options left for those who want to buy a model. Therefore, mobile subscription services are a growing market and increasingly important as an alternative to purchasing more expensive models.
How does a cell phone subscription work?
This service, known as a mobile subscription, actually works more like a equipment rental. Customers can choose from new or pre-owned devices from leading brands like Apple and Samsung and use them for 12 months. During this period, you’ll pay a monthly fee that’s lower than the price of your new device.
The cost varies depending on the model and brand selected. At the end of the 12-month period, subscribers will be able to choose from several options, including renewing their subscription and continuing to use the same device. Additionally, the customer can replace it with a new model or purchase the device for an additional fee. Yes, there is the option to return your device free of charge.
How much is a monthly phone subscription?
Evaluating the services of two subscription companies, Allugator and Leapfone, the following results were obtained. The 128GB iPhone 13 was chosen as the comparison device. In the official Apple Store, the device can be purchased for R$5,499.00 in up to 12 installments, or R$4,949.10 in cash. Check out the comparison of results.
Allugator: R$ 2,379.00 in cash or in 12 interest-free installments.
Leapfone: R$ 3,108.00 in 12 interest-free installments on your card, or R$ 279.00 per month – totaling R$ 3,348.00 in 12 months.
The Leapfone monthly fee includes theft and damage insurance, and the device comes with a case, screen protector, full charger and an exclusive gift. After paying 30x, the customer can purchase the device for just R$1.00.
Allugator subscriptions include insurance against theft or qualified robbery, but not against damage. Additionally, because it operates in a circular economy, the company does not allow users to buy the device after 12 months. You can choose to extend your lease, upgrade, or return your device.
Both companies use devices that have been serviced rather than new.
Advantages and disadvantages of renting a smartphone
The main advantage of a mobile subscription is that it gives you access to high-end devices at below-market prices. Considering the annual cost, it is cheaper to purchase an iPhone 13 from one of the companies than to buy it directly from a store.
However, this model is for those who want to update their device every year. The subscriber does not become the owner of the device after the 12-month period, so purchasing in installments may be more advantageous for those who are not interested in constantly updating their device.
