How does a device subscription work?

Staying up to date on all consumer gadget upgrades can be the difference between fitting in with the trends and being perceived as dated. After all, the price tag for today’s state-of-the-art smartphones, laptops, or tablets often retail for S$1,800 to S$2,500. The landscape has changed in a digitally-inclined Singaporeans to better access personal gadgets.

The device subscription model has swiftly evolved in a few short years from being a niche consumer trend, to becoming the leading purchasing alternative for today’s consumers.

Device selection and contract customization

Your order process begins with picking out the device specifications you’d want, as well as the desired length of subscription. The average duration of device subscription plans across different platforms range from 3-month commitment, to a long-term, yet cost-efficient, 6, 12, and 18-month plan. You are simply signing on to a pledge to use it for a period of time.

Identify verification and digital credit check

Once you pick out the hardware, the system immediately runs an instant verification check on you. Instead of endless stacks of pay slips or bank statements with complex algorithms and data provided via Singpass automatically verify identity and screen it briefly to detect fraud.

Transparent payment setup

Upon successful approval, proceed with connecting a supported bank card to the system to authorize subsequent installment plans. Rather than immediately debiting your full retail cost, a monthly subscription charge would simply take place once each month. 

Direct-to-door delivery 

As your phone arrives and opens, the hardware remains your personal device for the next few months where you have the freedom to operate it just like an actual purchased product. 

Flexible tenure options and monthly billing

There are no hidden or added processing fees, and your rates will not rise. If you lock-in a 12-month payment, you’ll pay that amount every month. 

Staying on the cutting edge

Towards the end of your term, you can get your hands into something new rather than being stuck holding onto a device that has developed a bad battery or simply lacks capability. Just pick your new device from the website, receive it, sync your info, and send the old one off.  

End-of-term options 

By the point your initial contract ends, you’ll typically find yourself choosing from one of three choices: 

• Upgrade. Trading your current phone, tablet, or laptop for a new model and continuing with a new minimum term. 

• Extend. Keep your existing plan or use the option to buy.

• Return. Send the device back and close the account with no further costs. 

When you make the choice to return your device, we require you reset it to the factory default to delete all of your personal information. We evaluate returned products after delivery to assess the condition, though some level of ordinary use wear and tear is expected.

For years, typical 2-year telco contracts was Singapore’s dominant method to get a brand new flagship smartphone. Nonetheless, with budget, data generous SIM-only plans supplied by incumbent telcos and MVNOs, the fundamental perceived worth has shifted.

While telco contracts might sound tempting on the surface, you’re locked into significantly costly flagship month-to-month cellular plans, with large allowances and features you might have zero desire for. It ties you up rigidly to 24 months and incur hefty early termination fees should you ever want to change providers or upgrade prematurely. 

However, a device subscription creates separation between the hardware you want and the network provider you’re with. By getting your hardware via a separate devices subscription plan, you’re totally free to buy around for the most affordable SIM-only mobile plan, simply paying as you go by a lot of mobile data you use.

While Fintech solutions such as BNPL services and existing hire-purchase structures defer payments over a period of time, the premise on which it lies is still fundamentally divergent from that of a subscription model. 

BNPL services and hire-purchase services are ownership models powered by credit. Upon purchasing an S$1,800 phone by using BNPL, you assume liability for the entire value of the device. The capital amount is repaid to the provider, over several monthly installments. Upon your payment fulfillment you would essentially end up owning a phone which has already fallen 40%-50% in its actual resale market worth. 

Device subscription is an access model based on a service, wherein customers pay for the useful utility of the device within specific months during use. The platform will be responsible for the remarketing, refurbishment, or disposal of the device, thus, not leaving the customer exposed to risks of depreciation.

• Tech enthusiasts: Wanting to have hands on with 12-monthly flagships without growing drawer clutter or time-consuming second-hand sales. 

• Money-conscious professionals: Individuals wanting to free up cash for investments and everyday expenses rather than tied up in depreciating hardware. 

• Expats and short-term residents: Professionals on 1-2 year work-passes who need good tech and freedom from long-term financial and legal constraints. 

• Freelancers and small businesses owners: Independent workers who use subscriptions to convert capital expenditures to regular monthly tax-deductible operational expenses. 

In Cinch, your subscription model is engineered with ultimate peace of mind throughout your entire tech journey. From signing up to use its platform simply via Singpass verification onlineöup until delivering a factory-sealed device in pristine condition directly to your mailbox, Cinch eases customers in having access to some of the latest tech. 

That’s why Cinch has built-in comprehensive protection schemes designed to cover subscribers up to 90% of accidental damage repair costs for scenarios such as accidental breakage or physical damage. Towards the end of your subscription terms, Cinch will then conduct full data wiping and refurbishment work to repurpose returned devices. 

1. Can you cancel a device subscription early? Yes, most subscription models allow early cancellation. Depending on your contract terms, an early termination fee or settlement of the remaining minimum term balance may apply. However, short-term contract options offer complete freedom to cancel whenever your requirements change.

2. How do upgrades and returns actually work in practice? When your term expires, you choose your upgrade online. Your new device is shipped directly to you. Once you have transferred your personal files, you package your old device and arrange a free courier pick-up through the portal.

3. Who are device subscriptions primarily designed for? Device subscriptions are ideal for individuals who prefer updating their tech every 1 to 2 years, professionals wanting to preserve credit card limits, expats needing flexible terms, and businesses seeking tax-deductible operating expenses.

4. What happens if I accidentally drop and damage a Cinch subscription device? Normal cosmetic wear and tear is fully accepted upon return. For accidental structural or liquid damage, subscribers who opt into Cinch receive up to 90% coverage on repair costs, keeping out-of-pocket expenses minimal.