Apple Announces iPhone Upgrade Program for Annual iPhone Purchasers

[Gjwilly]

I guess people are missing my point.

Is AT&T going to be locking these phones to their non-contract contract?

Will I be able to take my Apple Plan iPhone with AT&T to the UK, and stick a chip in it and get it to work? AT&T has ritualistically locked other unlocked phones to their plans in the past. It took the usability/benefit out of buying an unlocked iPhone away, and pissed off a lot of people...

I've never heard that before.
I thought an unlocked phone bought from Apple was an unlocked phone forever.

 

[aristobrat]

I guess people are missing my point.

Is AT&T going to be locking these phones to their non-contract contract?

Will I be able to take my Apple Plan iPhone with AT&T to the UK, and stick a chip in it and get it to work? AT&T has ritualistically locked other unlocked phones to their plans in the past. It took the usability/benefit out of buying an unlocked iPhone away, and pissed off a lot of people...

I've never heard of a carrier locking a phone that was legitimately purchased unlocked from a third-party.

Apple has sold unlocked versions of carriers phones for many years now.

The only thing new is that these unlocked phones are available for all carriers at launch this time (vs the usual a few months post-launch), and instead of only being sold for full-price only, there's this new Yearly Upgrade program.

 

[aristobrat]

I've never heard that before.
I thought an unlocked phone bought from Apple was an unlocked phone forever.

It is.

 

[aristobrat]

AT&T's next plan is terrible.

Regarding the post you quoted, all installment plans work the same way. If that guy was on Apple's Yearly Upgrade installment plan, he'd be just as "stuck".

IMO, he's not stuck. He can pay off what he owes to ATT for his phone (at anytime) and take his business anywhere he wants. There is no penalty for doing this.

 

[DustinLH00]

I still don't think it worth giving up the unlimited plan.. I don't know what to do?

That's the good part. You aren't giving up anything in your plan. The purchase of the phone should be independent of your plan, especially if you have already fulfilled the terms of your plan.

Up until late last year, I was on the same UDP that I had when the iPhone 3G came out. Since I had fulfilled the two years on that, I could have essentially jumped on the apple update program, paid for my phone that way, and not have anything touch my plan. Since you're not paying through your carrier for your phone, the device used for your plan should not matter.

I'll put it this way. What would happen if you went back to a Nokia 7250i or a Motorola Razr (not Droid)? Both are capable of using data. Would your plan change?

BL.

The problem is I have unlimited and I also have 4 lines of service. I take one of the upgrades every year. I paid $399 and got the iphone6. I then hand down the 1 year old phone to my wife. Hers goes to one of the kids. With this new plan I can't do that. My plan is not cheap so paying the $41 per month on top of my old out dated plan is not an option either. Pricing of the shared plans look good but just afraid to do it with kids that go over every month now.

I'm in sort of a similar situation. My kids aren't old enough for phones yet, but I upgrade and renew a 2-year contract every year and hand my phone down to my wife (alternating annual upgrades between the two lines). I then resell my wife's old phone for typically $50-$150 less than the $399 I pay for my new phone and keep my UDP intact. It seems like this is still by far the best way for me to go since even if I moved to a shared data plan I'd only be saving about $35/mo which is not nearly enough to match the cost to keep both lines in the latest or even second latest phone on Next or Apple's new plan. Am I missing anything?

I'm going to AT&T this evening and doing some pricing. They will give you either $15 or $25 off your bill if your not on contract depending which share plan you choose. I'm thinking is not too much cheaper than what I have now. I know I'm staying with AT&T so the sale pitch of you can go anywhere is not appealing to me. I just worried because my kids go over and I use about 5 gigs per month. The 15 gig share plane is not enough. The 20 gig plane will cost about the same aswhat I pay now.

If you want to keep your AT&T Unlimited Data plan, you cannot switch over to the Mobile Share plans, which are required to get the $15/$25 monthly credit. You can do Apple's upgrade program (Apple Store), AT&T Next (Apple Store/Online, AT&T Store/Online), or a 2-year contract (AT&T Store). But, if you keep your Unlimited Data and do not do a 2-year contract, you are basically paying for the device twice. Once in the built-in subsidy of your current talk/text/data plan and once again for the device payment plan.

 

[mmendoza27]

Called AT&T and they didn't know too much about the program obviously, but I was calling to get some advice on how to handle the upgrade. The AT&T representative graciously reminded me that even if upgrade eligibility somehow plays into joining the Apple program, I can use a shared upgrade that I have on my plan.

He did mention that he doesn't seem to think you need to upgrade eligible in order to join the Apple Upgrade Program, but he didn't know for sure. Either way, I'm pretty much set and should be ready to go for tonight!

 

[Mkovacs2011]

Does anyone have any insight on the whole upgrade eligibility aspect of the program? Since according the Apple's literature, it is an unlocked phone - so I wouldn't think having a contract with a carrier would affect this. Am I missing something or am I right in thinking that someone in the middle of a carrier contract could use this offer?

 

[mmendoza27]

Does anyone have any insight on the whole upgrade eligibility aspect of the program? Since according the Apple's literature, it is an unlocked phone - so I wouldn't think having a contract with a carrier would affect this. Am I missing something or am I right in thinking that someone in the middle of a carrier contract could use this offer?

We're all pretty much thinking the same thing but nobody really knows for sure. I'm sure we'll find out tonight. I think it's a safe bet to say you're correct in your thinking. I'm sure Apple will want everyone to upgrade. However, Apple has done some dumb stuff before. I can see eligibility playing a factor with Apple because if you are in the middle of your contract, they probably want to notify you that you can't just switch to any carrier (without a penalty) although the phone is unlocked.

 

[bradl]

I meant fully online, order and ship to my door on release day. Why the need to go to the store? Would hate to fall into some sort of back order or 4 hour lines.

My guess is that they would have to verify the card used and/or validate the check being done. Only thing I can think of.

On the other hand, this would be the good PR they were looking for instead of going off the long lines for waiting at the mall. Coming in with a reservation would be what Ahrendts is looking for.

And yes on your other part. My wife, mother in law and I are all on the same plan. Can I use my Credit and credit card/debit card to buy them all? Does each person have to credit check / have a CC?

If you put the phones all in your name, only 1 check should be needed.

BL.

 

[leesweet]

Sorry if if this is where I said it earlier (too many threads and on mobile) but I think the 'gotta do in store' is because in the future most people will be getting a new phone and turning in the old one at the same time. It would be a nightmare to coordinate/enforce that by mail somehow.

 

[bradl]

AT&T's next plan is terrible.

Because?

Look at the 12 month mark for a phone, and compare it to the comparable NEXT plan from ATT (which would be Next 12). In my example, I'll use the 6s at 128GB.

Apple's upgrade program has you at $40.75/month, while Next 12 has you at $42.45/month.

Get to that 12 month mark, and Apple has you having paid $489 by the time you could trade it in.

Next 12? $509.40 at that 12 month mark. However, not taking AppleCare+ into account, you're adding on another $129 to this, putting you at $638.40, as AppleCare+ is not included in the Next plan.

You would have paid an additional $149 over the 12 month period with Next 12 before being able to trade it in. Plus, you'd still have to pay the entire phone off before ATT would unlock it.

Not much incentive for NEXT at that point.

BL.

 

[Mkovacs2011]

Just spoke to an apple specialist. Assuming he was correct, I think the community will have some answered questions in regards to who is eligible for the apple upgrade program!

• 
  Apple: Hi! Please, give me a moment to read what you sent me. Feel free to call me Jay by the way. How are you?
  
  Me: I'm doing great. How about you?
  
  Apple: Excellent! I’m doing well thank you for asking.
  
  Apple: What can I do to help today?
  
  Me: I just had a question regarding the new iphone every year program that is now being offered
  
  Apple: Great!
  
  Me: I guess my main concern/question is regarding the fact that I am still under contract with Verizon. Since the iphones being sold in this new program are unlocked and straight from apple, would I be able to use that financing offer? Or would I have to not be under contract in order to use it?
  
  Apple: I hear exactly what you mean. Are you paying Verizon monthly for your phone itself or just your plan?
  
  Me: No. I had purchased it subsidized. I am still under contract with them however. I'm not looking to end my service with verizon. Just to purchase the iphone under the new apple iphone every year program with the monthly installments.
  
  Apple: Excellent! This is a way for your to purchase the iPhone for full price through us instead of extending any contracts you have with Verizon. You can definitely take advantage and buy the iPhone from Apple this way.
  
  Me: So if I'm understanding correctly. Even though I am under contract with Verizon, I would be able to participate in the new Iphone every year program by paying apple through monthly installments? Or is that incorrect?
  
  Apple: Yes-you are exactly right! Thanks for your understanding here.
  
  Me: Great. So even though someone may be under contract with a company, they could still purchase the iphone under the new program through monthly installments through apple
  
  Apple: I completely understand. You do not have to be eligible to upgrade your iPhone when you come to purchase through the Apple upgrade program. Does that help explain this a little better?
  
  Me: Absolutely! Thank you so much for your help. I really appreciate it
  

 

[DustinLH00]

I don't understand why there was confusion on that. The program is basically a 24-month loan through Citizen's for an unlocked device. WTF would Apple care what your current contract or plan is. Of course you can buy the phone, put your SIM card in it, probably pay another activation fee, and continue to pay Verizon for your subsidized device.

 

[Gjwilly]

Not much incentive for NEXT at that point.

BL.

Yeah I get that Apples plan is superior to Next. I thought that the person I was replying to was saying that Next was somehow a ripoff in and of itself.
Before they gave the $25 discount for not being subsidized it was a ripoff but once they fixed that.....

 

[outlanderbz]

Look at the 12 month mark for a phone, and compare it to the comparable NEXT plan from ATT (which would be Next 12). In my example, I'll use the 6s at 128GB.

Apple's upgrade program has you at $40.75/month, while Next 12 has you at $42.45/month.

Get to that 12 month mark, and Apple has you having paid $489 by the time you could trade it in.

Next 12? $509.40 at that 12 month mark. However, not taking AppleCare+ into account, you're adding on another $129 to this, putting you at $638.40, as AppleCare+ is not included in the Next plan.

You would have paid an additional $149 over the 12 month period with Next 12 before being able to trade it in. Plus, you'd still have to pay the entire phone off before ATT would unlock it.

Not much incentive for NEXT at that point.

BL.

it isn't that simple though.

I have the Next 12 with Applecare + on a 64GB 6 Plus. Because I paid more since it is 20 months not 24, I had paid $509.40 and was able to pay the rest off for $340. Now I have a paid off phone. Gazelle alone is offering $340-$390 and that is the low end considering Craigs, ebay and others are usually a little higher than Gazelle. Using that example I can recoup that cost plus some. no way was I giving my phone back to AT&T so they can make that profit. As for AppleCare +, I can return the unused portion for a credit or ask the purchasing party if they want me to transfer it for a cost.

now on Apple's plan, can you pay off the remaining months early? If you can do you pay off the AppleCare as well? If you sell it you do not need that AppleCare. Can you return the unused portion?

If you are staying with AT&T anyway, they are both really close to the same unless Apple doesnt let you pay it off early and keep it. And if you do not want AppleCare not much incentive for NEXT. This is coming from someone who would rather deal with Apple direct than a carrier.

 

[iapplelove]

Am I the only one that just outright buys their phone every year? I don't want to pay installments for a smart phone lol. I sell mine at a good price and just buy the new one with my debt card.

 

[bradl]

it isn't that simple though.

I have the Next 12 with Applecare + on a 64GB 6 Plus. Because I paid more since it is 20 months not 24, I had paid $509.40 and was able to pay the rest off for $340. Now I have a paid off phone. Gazelle alone is offering $340-$390 and that is the low end considering Craigs, ebay and others are usually a little higher than Gazelle. Using that example I can recoup that cost plus some. no way was I giving my phone back to AT&T so they can make that profit. As for AppleCare +, I can return the unused portion for a credit or ask the purchasing party if they want me to transfer it for a cost.

now on Apple's plan, can you pay off the remaining months early? If you can do you pay off the AppleCare as well? If you sell it you do not need that AppleCare. Can you return the unused portion?

If you are staying with AT&T anyway, they are both really close to the same unless Apple doesnt let you pay it off early and keep it.

Can you pay off the remaining months early? From what was posted in this thread, the answer is yes. But since AppleCare+ is included with the upgrade program, you're not paying that separate, so when you pay off the phone through the upgrade program, AppleCare+ is also paid off. Also, I believe it was said either at CultofMac or 9to5Mac, or maybe another thread here, that If you don't use the unused portion, that can be refunded or prorated.

BL.

 

[randian]

I don't understand why there was confusion on that. The program is basically a 24-month loan through Citizen's for an unlocked device. WTF would Apple care what your current contract or plan is.

But they do care, since the written terms (which may differ from how the program is actually administered) require a direct account with a carrier rather than one of their prepaid divisions or MVNOs.

 

[randian]

Am I the only one that just outright buys their phone every year? I don't want to pay installments for a smart phone lol. I sell mine at a good price and just buy the new one with my debt card.

Why wouldn't you want to pay installments at 0% interest? Time value of money.

 

[outlanderbz]

Can you pay off the remaining months early? From what was posted in this thread, the answer is yes. But since AppleCare+ is included with the upgrade program, you're not paying that separate, so when you pay off the phone through the upgrade program, AppleCare+ is also paid off. Also, I believe it was said either at CultofMac or 9to5Mac, or maybe another thread here, that If you don't use the unused portion, that can be refunded or prorated.

BL.

then in my opinion...

If you plan to stay with AT&T and don't want applecare, Next 12 is better, especially if you pay it off and sell it on your own at 12 months
If you plan to stay with AT&T and want applecare it is about the same - if you do not mind selling your phone at 12 months instead of handing it back to AT&T
If you don't want to be tied to AT&T, Apple is better
If you want your new iPhone to be delivered to your door, Next 12 is better
If you are worried AT&T might change the per device discount structure to keep you on Next, Next 12 is better
If you just love Apple, Apple is better

Thats how I see it after analyzing the hell out of it and reading everything I can. For me, I am worried about the lines for buying in store and typically do not buy applecare although I do on my wife and mother in laws phones. I do think handing a phone back to Apple would be easier than AT&T.

 

[iapplelove]

Why wouldn't you want to pay installments at 0% interest? Time value of money.

Yeah but I'm paying cash for the phone (debt card) there isn't any interest there. I can understand the reasoning behind this process somewhat, however I rather have the option to keep the old phone as a spare or sell it outright down the line while upgrading every year. And really it's only been every other year I have paid full retail because every two years I get a deal by signing another contract . I have unlimited data with At&t

 

[Gjwilly]

..... and just buy the new one with my debt card.

Freudian slip.

 

[iapplelove]

Freudian slip.

lol more like just me misspelling haha. No debt here. Just cash and debit cards

 

[PinkyMacGodess]

I've never heard of a carrier locking a phone that was legitimately purchased unlocked from a third-party.

Apple has sold unlocked versions of carriers phones for many years now.

The only thing new is that these unlocked phones are available for all carriers at launch this time (vs the usual a few months post-launch), and instead of only being sold for full-price only, there's this new Yearly Upgrade program.

Well, here's the poop: I *bought* an iPhone 6+. Cash, outright. No subsidy, no nothing. It's locked to AT&T. I tried a sim while on holiday, and it would not work. The iPhone is locked to AT&T.

I talked to an AT&T rep, and they said that I'd have to pay to get it 'unlocked'.

I don't know if it's locked to my contract or what. I was told by an AT&T store droid that AT&T 'always' locks phones like that. I have the 'old grandfathered unlimited contract'.

Why the frack are they locking MY iPhone, and not locking other folks iPhones?

Especially since I paid FULL PRICE for the damn thing... FULL PRICE!!!

It's not like I'm going to visit Europe for a week, and decide to stay there and somehow cheat AT&T out of some crazy minuscule pile of cash... To me, they are being buttheads, but then...

 

[PinkyMacGodess]

I've never heard of a carrier locking a phone that was legitimately purchased unlocked from a third-party.

Apple has sold unlocked versions of carriers phones for many years now.

The only thing new is that these unlocked phones are available for all carriers at launch this time (vs the usual a few months post-launch), and instead of only being sold for full-price only, there's this new Yearly Upgrade program.

That happens all the time for people that still have the limited 'Unlimited Plan', right?