T-Mobile Extends Device Payment Plans to 36 months

Nearly every smartwatch and tablet for sale now requires this three-year payment schedule. Top-selling devices in both categories are now on the 36-month term, ending the two-year plan era for these accessories.

Will Phones Be Next?

For a long time, T-Mobile was the only major carrier still offering two-year installment plans. AT&T switched to three-year phone plans in 2022, and Verizon followed in early 2023. The shift for non-phone devices is a possible sign of longer smartphone financing is coming soon.

This strategy is smart for T-Mobile's bottom line. Customers who get promotional credits are motivated to stay with the carrier for the entire three-year duration, since leaving early means losing the rest of those credits.

What This Means for the Customer

Customers gain very little, and they clearly lose flexibility. T-Mobile's promotions usually cover the full device cost, which means the main benefit of a longer loan—lower monthly payments—doesn't really matter. The chief outcome is simply a longer commitment.

We expect that new smartphones will soon require a three-year plan at T-Mobile. It's an unfortunate, but predictable, part of how carriers operate now. Maybe a rival company will decide to bring back the two-year plan later, but for now, 36 months is the new default.