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Apple Announces iPhone Upgrade Program for Annual iPhone Purchasers
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Ahh.. you're right. I didn't see that that was a sliding bar. Let me do those again for the 6s.
For upgrading in 12 months:
Apple: 40.75 * 12 = $489
ATT Next 12: (42.45 * 12) = 509.40 + 129 = $638.40
Keeping the phone after 24 months:
Apple: 40.75 * 24 = $978
ATT Next 18: (35.38 * 24) = 849.12 + 129 = $978.12
Keeping the phone, vs. Next 12:
Apple: 40.75 * 24 = $978
ATT Next 12: (42.45 * 20) = 849 + 129 = $978
Even push again, though upgrading in 12 months would be the better deal. The only difference at that point is an unlocked phone versus locked, and not being able to get the phone unlocked on ATT until the phone is paid off.
BL.
So this is unclear and kind of confusing.
The period is 24 months to pay for a credit (financing) or a lease?
Apple Care is for 24 months too, so it seems you will own the hardware but when you get a new phone after you paid the 12th installment and you get a new one you will have another loan??? or you have to return the iPhone??
When there is an incident you have to pay a fee on top of what you paid, the keynote sales pitch is not matching with what is posted on apple.com which seems to be a very misleading advertising.
Me not like it...
Hopefully I'm misinterpreting it, and it is as it sounded during the keynote???
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As I understand it: activation means you make the SIM card and the iPhone work with your phone line, whatever carrier you are using.
For example I saw my AT&T out of my iPhone 5 with a SIM from Net10 and get my Net10 line activated on my iPhone 5. I'm not getting a new contract, just activating my existing line work on another phone.
Also it is done when getting a new line or a different contract for an existing phone line.
I did see that, it's much more money than what the sales pitch of today's keynote presentation.
You're correct, it's essential a push if you decide to keep the phone. The confusing aspect I don't understand is how is how if you want to upgrade in 12 months, the Apple Plan is based on 24 installments while AT&T Next is based on 20 installments. This makes the Apple Plan seem far and away the better deal because they are giving you 50% for turning the phone back in, while AT&T is only giving you 40%. If this is true, what is the advantage of using the carrier finance plan; ie, AT&T Next?
The credit check will still be happening, for Apple's program is through Citizens One, and I guess if you are getting a new phone line for postpaid payment you will have a credit check with the carrier too on top of the Citizens One.
All those deals are good for people who like to get a new piece of hardware once a year or as frequent as the plan provides, or for people interested into paying a monthly fee instead of a lump sum for the device. At the end you end up paying more for the device and the main purpose of these is to keep you renewing a contract or paying fees to keep going. I believe it's terrible to pay for leasing a device and then you end up without any hardware if you walk away, or in the long run you probably had paid a total amount of plenty of iPhones and limited to have one that is supposed to be the latest and greatest model.
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If you get a new phone every 12 month why do you need Apple Care if you also need to pay a significant fee when there is a damage, that sounds more like you are insuring the device for the financing company's sake and not really for the device, they found a very deceptive way to milk money out of millions of people
. I'm staring to feel concerned about how Apple is trying to increase their sales numbers with this weird and confusing gimmicks, very anti everything we loved about it...
. I'm staring to feel concerned about how Apple is trying to increase their sales numbers with this weird and confusing gimmicks, very anti everything we loved about it...It's essentially "leased" over the course of 24 months. Until you've paid the full term, you technically do not own it. If you want to upgrade every year, you can. Generally you are required to return the device to upgrade in good condition (hence the included AppleCare+), or pay the remaining term in full at that time (if you've sold the device for instance). That's how the carrier plans work at the retail store, but the terms page isn't loading for me for this plan.
I have the UDP too. If you're game plan is to get a new iPhone and then use it for 2 years (or more), then you are far better off paying the subsidized price (which is $449 less than buying the phone outright) and entering into a 2-yr contract. At the end of the 2 years, sell the iPhone and do it all over again. It is far more financially advantageous this way. However, if you don't have the grandfathered UDP and/or you have the desire to upgrade every year, then yes, it is a better deal to go with Apple's monthly payment plan.
Not really, it depends on your plan and carrier. On Verizon, any device on a "Device Payment Plan" (formerly Edge) gets a per-line credit which varies by how big your data plan is. For my plan I get a $25 credit per line on a DPP, which I would not get if I simply paid full retail for the phone.
That line credit is the key, since over a 24 month period I'm getting $600 credit just for financing my phone, which I would not get by buying outright. At the end of the 24 months I own the phone just as if I paid up front, but paid $600 less for it. If I choose to upgrade my device before 24 months I can do so by paying off the balance, but I'd lose the $25 per month credit for any remaining months on the payment plan.
So let's say I start a new DPP for a 64GB 6S+ and a year from now I want a 64GB iPhone 7. The 6S+ would cost me $10.42/month ($850/24 - $25) or $125 for the year, then I'd owe the remaining 50% balance of $425 (no per-month credit on the balance), so a year into the contract the net cost to me is $550 to fully own the phone instead of $850. The $300 savings comes from the $25/month credit over the year. I could then sell the 6S+ to mostly offset that $550 cost, heck I might even break even.
So at least in Verizon's case the financing option is a very attractive deal, as long as your data plan is large enough to get the $25/month credit (I think 6GB/month and up, otherwise the credit is $15/month).
I thought we could upgrade AT&T next program right through Apple when ordering online? I just paid my Next plan in full for the Note 4 I got so I'm ready for an upgrade. I was hoping to order a 6s+ at 3:01am on the next program. I'd love to just buy one full price, but I don't think they sell them full price until a couple of weeks later, right?
Also with the Apple program, do they have a provision to upgrade to the next iPhone, trade in your old iPhone, and just continue the monthly payment, kind of like a lease that runs forever?
I'm not sure if you're familiar with how the accidental protection warranties that the US carriers sell work, but replacing a phone through one of them usually involves a fee of $200+. So AppleCare+'s $99 replacement fee is about half that.If you get a new phone every 12 month why do you need Apple Care if you also need to pay a significant fee when there is a damage, that sounds more like you are insuring the device for the financing company's sake and not really for the device, they found a very deceptive way to milk money out of millions of people
The carriers usually charge $8-$10/month for the service, too. Apple's bundling it in with the monthly device cost, and that cost is coming out less than AT&T's monthly device cost for just the device <no insurance>.
Is Apple doing this to make money? Duh, that's what companies do. Is Apple being tricky about it? Seems to me they have the easiest to read descriptions of the plans -- I don't see anything tricky about it. And if Apple was trying to milk money out of people just for the sake of it, they're dumb for not raising their rates.
I'm pretty sure you can get $25 off for being out of contract, but you have to ask for it. All of our formerly subsidized lines are going off contract at the end of the month and the Verizon person I spoke with said we'd be getting a $25/line credit off the $40 line access charge. YMMV.
Have you seen something in the contract that says that? With AT&T's Next program, the contract does not call for return of the device if you stop paying for it (much like how if you charge a TV at Best Buy on your AMEX, and then stop paying your AMEX bill, you don't have to return the TV back to Best Buy. You own it from day #1, regardless of if you finish paying for it or not).
ATT next for a 64gb iPhone 6+ is 42.45 not 47.75, unless I'm missing something or are you adding insurance?
For me the plus is the included Apple Care. The carriers warranties are junk, $12+ / month and their deductibles are what, like $275 or so, just crazy. Even squaretrade is about the same price as apple, and you still have to send the phone in the mail and wait for it to come back. Also what's the $129 you add on?
I apparently need to talk to AT&T. I'm still paying what I was 3 years ago when I got the 4s. I think I saw something about a discount for being out of contract. I got kicked out of the unlimited plan when best buy jacked my account up when I got the Blackberry Torch 5 years ago. I use between 500mb and 750mb data. The Apple deal is intriguing. I just need to figure out what to do with my account to decide. I like that I could upgrade next year when they announce the new iphone. I've been waiting patiently to upgrade my 4s.
Why do people keep saying "lease"? It's financing, you are purchasing the phone but paying it in installments. No you don't own the phone until the 24th payment, but I don't own my house or car until the last payment either, but I'm not leasing them. I suppose it's financing with an option to trade in.
Depends on the sales taxes. T-Mobile and Sprint have true leasing programs, you only pay sales tax monthly as you go. If you're upgrading annually you save on sales taxes vs buy/resell.
If you get a new phone every 12 month why do you need Apple Care if you also need to pay a significant fee when there is a damage, that sounds more like you are insuring the device for the financing company's sake and not really for the device, they found a very deceptive way to milk money out of millions of people
This is an excellent point, certainly it's a trap many fall into. I usually sell my phones so it's a selling point, although I don't get all the value of course. It's also better to use squaretrade in terms of your post because you can cancel your plan and you get money back which is prorated, where with apple you don't get anything back.
Seeing the awesome resale value of the iPhone I'll bet it's still better to sell it. Heck a 16gb 6+ is still averaging around $500 on swappa and that's after the 6s+ announcement. So if I paid $749 for it and sold it for $500 then I'm paying $249/12=$20.75 for that year of use. Although realistically tack on another $15 for shipping and swappas $10 fee, but still better than the carrier or apple.
If they honor that, I'd consider it the "this-changes-everything plan" (Portlandia reference). That would remove any incentive to finance the phone as opposed to paying full price up front, maybe that's why they'd honor it. I'll look into it since I have one line on a 2 year contract that is coming due and I'm not sure we'll be updating the phone on that line anytime soon.
I think the $129 is the cost of adding AppleCare+ to a phone on AT&T Next.