Verizon wants to end device subsidies: why iPhone 18 Pro deals may not last (and what dealers should do)
Dealer takeaway: If Verizon reduces device subsidies, it changes the entire postpaid pitch. For years, “free/discounted iPhones” and bill credits have been the hook that kept customers paying postpaid prices. If that hook weakens, customers will start asking tougher questions: “Why am I paying more?” Dealers who can explain the math—and offer a clean BYOD path—will win.
What Dan Schulman said at the Goldman Sachs conference
Speaking at the Goldman Sachs Communacopia + Technology Conference 2026, Verizon CEO Dan Schulman outlined four priorities for turning Verizon around:
Prioritize customers (measured through churn and postpaid phone net adds)
Overhaul culture (less bureaucracy, more “play to win”)
Improve efficiency (including aggressive cost cutting)
Deliver investor value after years of underperformance
Schulman said churn had been rising for three years and is now coming down year over year. He also pointed to Q2 results that included 184,000 postpaid phone net adds and 77,300 prepaid net adds.
The red flag for customers: subsidies may be on the chopping block
As part of his efficiency push, Schulman has already moved quickly—reportedly laying off 13,000 employees early in his tenure—and he has set cost-cutting targets. The report suggests he ultimately wants to stop offering discounted handsets.
Translation: Verizon may try to reduce or end device subsidies (the discounts and bill-credit deals that make expensive phones feel “free”). If that happens, customers who want the iPhone 18 Pro may have a narrower window to get the best promotions.
Why this is a big deal: subsidies are the postpaid advantage
Device discounts are one of the main reasons customers choose postpaid over cheaper prepaid options. When subsidies shrink, customers start comparing:
Postpaid monthly cost vs prepaid monthly cost
How long they’re locked in (often 36 months now)
Whether credits are reliable or “disappear”
What they actually get for paying more
The report frames this as a risk: Verizon has already scrapped price guarantees and could drift back into “status quo comfort” if it cuts the very incentives that keep customers loyal.
Dealer playbook: how to turn “subsidies ending” into conversions
1) Run a “real cost” upgrade audit (postpaid vs prepaid)
Customers don’t need opinions—they need math. Audit:
Total 36-month cost (plan + device + add-ons)
Trade-in value vs monthly credits (and what voids credits)
What happens if they upgrade early or miss a promo requirement
Comparable prepaid/BYOD options for the same usage
2) Sell “Upgrade Readiness” as a service
Backup + account password/MFA check
Trade-in condition check + photo documentation
eSIM transfer planning + port-out/port-in checklist
App migration for banking/work/authenticator apps
3) Build a BYOD-first offer for customers who hate lock-ins
If subsidies fade, BYOD becomes the default. Dealers should package:
Certified pre-owned iPhones as lower-cost alternatives
Financing outside the carrier (where available)
Protection + accessory bundles to protect the investment
Relevant vendor resources (WDG Directory)
These categories support a BYOD + upgrade season strategy:
Phones (BYOD alternatives, certified pre-owned)
Accessories (cases, screen protectors, chargers)
Repair (trade-in prep, quick fixes)
Bottom line
If Verizon moves to reduce or end device subsidies, customers will re-evaluate why they’re paying postpaid prices—especially with 36-month financing becoming the norm. Dealers who provide clear math, clean BYOD switching, and upgrade readiness support will capture the next wave of churn and upgrades.
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