Apple Announces iPhone Upgrade Program for Annual iPhone Purchasers

[keifer.street]

This wouldn't be a lease. What you'd do is that you'd pay that amount per month until the entire phone is paid off. However, if you want to get the newest phone (should it come out next year; And let's face it, Apple just indicated that it would by even having this program), you'd trade in the 6S or 6S Plus for the remaining cost of the 6S or 6S Plus, to be applied to getting the iPhone 7 (or whatever they are going to call it).

Otherwise, you keep paying the $xx per month until the retail cost of the phone is paid off. After that, it's yours. You OWN it.

BL.

It's disengenuous to say this isn't a lease program. Because it is.

In order to get a new iPhone every year, you need to turn in the existing phone. When buying a new phone, you pay little to nothing up-front, but as trade off, you pay an affordable monthly fee to lease the latest phone; insurance (AppleCare) is also required during the financing period. Sound familiar?

That's because it follows the exact same model (and purpose) that leasing a car does.

So what if you have the option to buy at the end of the lease period. That's EXACTLY how a car lease works. With a car lease, you also have the option to purchase the car (to own) at the end of a lease. Same thing.

At the end of the day who cares? So what if it's a lease? The leasing model works best for the smartphone industry because people upgrade so often.

 

[Locoboof]

Seems to be the same pricing as AT&T Next, except the iPhone is unlocked and you get Apple Care+.

I still prefer AT&T Next + Down Payment, which reduces the monthly payment amount. What sucks about that is you have to order via AT&T, which I've never done before.

That's the main thing for me. I hear ordering from AT&T is a nightmare. I've had every iPhone on day one since the first. The times I've ordered online or from the app with apple have been a breeze.

 

[bradl]

what about a credit check with the carrier you are going to go with say you got this phone from Apple under this new program but what if you want it to work with say ATT or Sprint?

Would you be a new or existing customer? If an existing customer, the credit check should be irrelevant, as it wouldn't be required at all.

BL.

 

[outlanderbz]

Does anyone know how this works for existing AT&T Next customers? I'll be up for my 12 month upgrade this month.

Can I just swap to Apple's plan and return my existing phone to AT&T?

This is exactly what I am trying to figure out. The other part that has me concerned is the discount for the device. It cost $40 per phone on a share plan. You get $15 off for under 15GB plan and $25 off for over 15GB plan if the phone is on Next or if it is your own. I am assuming this new Apple way would be considered as "your own" however, can AT&T change that if they did not like what Apple just did....

 

[bradl]

It's disengenuous to say this isn't a lease program. Because it is.

In order to get a new iPhone every year, you need to turn in the existing phone. When buying a new phone, you pay little to nothing up-front, but as trade off, you pay an affordable monthly fee to lease the latest phone; insurance (AppleCare) is also required during the financing period. Sound familiar?

That's it follows the exact same model (and purpose) that leasing a car does.

So what if you have the option to buy at the end of the lease period. That's EXACTLY how a car lease works. With a car lease, you also have the option to purchase the car (to own) at the end of a lease. Same thing.

So what if it's a lease? The leasing model works best for the smartphone industry because people upgrade so often.

The difference here is that you get the option to keep your phone outright, provided that you pay it off in its entirety. So when you pay off the retail price of the phone, you OWN THE PHONE. You are not being forced to return the phone after a year; you have the option of keeping the phone and not upgrade.

I have never seen a program where if you pay off the entire price of the product that you still have to return the product.

BL.

 

[randian]

All “activation” is the $40 fee(in the case of Att) tries to charge you. The only reason for the two year contract was for them to recoup the price of the phone.

So now I have to pay a fee on top of the phone even if I keep my existing service?

 

[budselectjr]

This is exactly what I am trying to figure out. The other part that has me concerned is the discount for the device. It cost $40 per phone on a share plan. You get $15 off for under 15GB plan and $25 off for over 15GB plan if the phone is on Next or if it is your own. I am assuming this new Apple way would be considered as "your own" however, can AT&T change that if they did not like what Apple just did....

The Next plan and the other carrier equivelants are all at 0% APR so I doubt they would care. AT&T already has language about "bring your own" and "month-to-month contract".

 

[outlanderbz]

That's the main thing for me. I hear ordering from AT&T is a nightmare. I've had every iPhone on day one since the first. The times I've ordered online or from the app with apple have been a breeze.

I do not think you have to order through AT&T. If you put in the eligibility check on apple.com right now, it tells you you can order your new device on Next and even tells you what you still owe. For me it tells me I have to go to myatt.com and pay $42 before I can order a new Next device. Seems like how they used to check your contract status.

I don't know what then happens though, does AT&T send me a box or do I need to bring my old device into an AT&T store within so many days?

here is what it says for me as an existing Next person when I check apple.com

"Before being eligible for an AT&T Next upgrade, you have 1 remaining installments totaling $42.45.

To take advantage of your AT&T Next upgrade today you can pay off this balance on myatt.com and then return to the Apple Online Store to buy an iPhone. Or you can pay off this balance at an Apple Retail Store and, subject to availability, purchase a new iPhone there using AT&T Next. To qualify for a new AT&T Next Installment plan, the original device you purchased previously with AT&T Next must be returned in good working condition."

 

[outlanderbz]

The Next plan and the other carrier equivelants are all at 0% APR so I doubt they would care.

I am sure they make money off the device you are turning in, that will now be going to Apple...

 

[keifer.street]

The difference here is that you get the option to keep your phone outright, provided that you pay it off in its entirety. So when you pay off the retail price of the phone, you OWN THE PHONE. You are not being forced to return the phone after a year; you have the option of keeping the phone and not upgrade.

I have never seen a program where if you pay off the entire price of the product that you still have to return the product.

BL.

You missed one of my paragraphs. Every leasing model in the world gives you be option to buy the product (and keep it) at the end of the leasing period. Sure you can keep the phone, but you can't get a new one after 12 months unless you want to pay an additional leasing fee.

 

[cheekyjeremy]

It will be interesting to see if the folks that want it on day one can get into the program fast enough to order and receive by day one. If you can only register for an appointment at 12.01am, then if things are like they usually are, buy 12.10am, all the phones are gone and then when you go for your appointment, you are weeks behind everyone else.

 

[aneftp]

Most important for me is do I pay full taxes on this lease purchase. Anyone know the answer? Att next is installment own it in 20/24/30 months. But if it's truly a leasing plan u should have to pay full taxes on it. Depending on state laws

With car leases full taxes is due in some states and not others. In Maryland I had to pay full $50k taxes on 24 month lease which sucked. I rather pay the 6% state taxes on lease price.

 

[iGeek2014]

Same but for the UK

Sounds like something similar to Vodafone's offerings.

You "lease" the phone (I forget the program's name right now) and so long as you look after the phone etc you can upgrade every 12 months (it's a 24 month agreement though).

 

[budselectjr]

I am sure they make money off the device you are turning in, that will now be going to Apple...

True. John Legere sounds pretty happy about it though and claims T-Mobile will have a counter offer soon.

 

[Blorzoga]

I'm sold on this if it can use your existing plan. If this is for new customers only, that's a problem.

BL.

Well, the phone should be unlocked, so you shouldn't have to change anything with your carrier.

 

[HalfNelson]

When did activation stop meaning "new line of service"?

activation has never been synonymous with new line of service. Whenever you connect a phone to a carrier it is an activation. A new line of service is always the addition of another phone number attached to your plan/bill. If I take an AT&T sim and put it in an unlocked phone, that phone is then activated on AT&T's network. It is an activation. By saying it is only available to activations with the 4 carriers, they are saying that by the time your phone is setup to make calls, it has to be able to make calls using one of the 4 carriers. The phone is still unlocked, meaning you can drop a SIM card in from wherever, and it will work, but you have to have an active account with one of the 4 carriers to utilize this plan.

 

[Lyons00]

Can I still get the next plan, if I buy through the Apple website of the Apple store app?

 

[budselectjr]

And for people with last years models, selling your current phone will most likely cover most of the cost of the subsidy in your monthly bill for the remaining 12 months of your contract if you were to sign up for the upgrade program.

 

[bradl]

Well, the phone should be unlocked, so you shouldn't have to change anything with your carrier.

Yes, the phone would be unlocked, but is the program only available to new customers, or are existing ones in on this as well? If they are, then this may be a good deal. If it is only new customers only, that's a problem.

Anyway, in checking the pricing availability page on Apple's site, I'm in a bit of a conundrum. My wife and I are still on our 4S, and in looking at the price comparison, we could go with a 128GB 6s on ATT Next 18 for $39.55/month per phone, locked, not including AppleCare+.

By comparison, we could go through apple for an extra $1.20/month per phone, and could get the same phone, unlocked, with AppleCare+. That's almost minimal, and am getting the benefit of unlocked and the protection on it.

Not bad.

BL.

 

[Hopsdaballa04]

Looking at a 16GB iPhone 6 (as an example): $32.45 x 24 = $778.80 - $100 (for the AppleCare+) = $678.80. Base price of the phone is $649. Does that mean you're paying an extra $29.80 for the privilege of the installment plan?

AppleCare is increasing to $129.

 

[semka]

There are two important questions: does the installment plan include taxes and do you own the phone after 24 months of payments, i.e not upgrading after the first year. If the answer is yes to both, this would be the best deal you could get from any carrier if you're going to buy AppleCare anyway.

 

[mzhamad]

For someone who has T-Mobile Jump program, which is better the apple plan or stay with the TMO jump ?

 

[mzhamad]

For someone who has T-Mobile Jump program, which is better the apple plan or stay with the TMO jump ?

 

[semka]

For someone who has T-Mobile Jump program, which is better the apple plan or stay with the TMO jump ?

We don't know all the details of the Apple plan, but Jump is the best so far if you signed up before yesterday.

 

[BigMcGuire]

I am on Verizon's Edge program. In February I early edged up to a 6+ with $39?/mo payments. I get $25/mo off on my line though because of the Edge plan. So I'm effectively paying $14/mo for this phone. With this I'd be paying $44.91 (obviously with AppleCare+) - $25 = $19/mo. Price difference isn't insane - the $5/mo means I don't have to buy AppleCare+ ($60/year, $120/2 years).

So the question becomes. Do I want to lease my phone or just buy my phone outright and wait 2 years? I'm honestly thinking 2 years.

I gave up on VerizonWireless stores a long time ago - some of the most corrupt places ever with employees doing everything they can to get you to sign up for protection packages and accessories that easily 2x Amazon's prices. I had one employee pressure me for the insurance so hard that after declining 10 times (I kid you not) she slammed her tablet on the table and walked off muttering how she didn't think she could sell us a phone unless we got the insurance. On our way out we let the manager know how we felt only to have the manager laugh in our faces mid sentence. Reason why I take the time to mention this is - I'm sure I'm not the only one thrilled with not having to go to a carrier store ever again.

I do everything online now (with VerizonWireless). Have for a few years - best thing ever. Takes 1/10th the time and I don't have my phone covered in greasy fingerprints. That said I wouldn't mind going to an Apple Store to do this but would prefer to do this online.