The model of subsidizing smartphones through carrier contracts doesn’t exist or work in many markets around the world, and that includes India as well. This makes it difficult for most customers in the subcontinent to buy flagship smartphones, resulting in lower sales for established brands like Samsung, Apple, and others.
To overcome this challenge, Samsung has been offering many of its products on easy monthly installments to customers. It appears the company is now experimenting with a rental option as well with select devices on its Indian website displaying a ‘Rent now” option. The Korean tech giant seems to have added this option towards the end of September this year in partnership with Rentmojo, an online rental start-up in which Samsung Ventures invested recently.
The entire smartphone rental process is handled by Rentmojo and is currently available only in Bangalore, Delhi, Gurgaon, Mumbai, Noida, Chennai, Hyderabad, and Pune cities. Even in these cities, Galaxy S10/S10+, Note 10/10+, Note 9, and Galaxy A70 are the only Galaxy smartphones available on rent as of now.
An expensive option
Understandably, the RMI (Rental Monthly Installment) varies by models and the length of the rental subscription. For example, you can rent a Galaxy Note 10 in Bangalore at Rs. 5,549/month (~$77) for a minimum commitment of six months. The per month rental payment drops to Rs. 4,249 (~$60) and Rs. 3,949 (~$55) if you opt for 12 and 18-month subscriptions, respectively. In each of these cases, customers have to pay a refundable deposit of Rs. 8,498 (~$120).
In the above scenario, if you pick the 18-month plan, the total rental payment comes to Rs. 71,082 (~$990), which is more than the retail price (Rs. 69,999) of the Galaxy Note 10 in India. There is a cancellation fee if you choose to end your subscription before the agreed duration.
Clearly, renting a smartphone is not a good financial decision for most users. But for those who are interested, the process is relatively simple: select the product and the duration, pay the refundable deposit, and receive the product once your profile is verified. The rental service comes with a 7-day free trial and a free upgrade to the latest model after 12 months. If any of this sounds appealing, you can go here to rent a Galaxy smartphone.
