Apple Announces iPhone Upgrade Program for Annual iPhone Purchasers

[neurocutie]

so... I'm an MVNO prepaid customer... can I get this iphone upgrade program for the 6S?
(i.e. if I'm on Cricket, or Boost, or PagePlus, or Airvoice, or...) Why should Apple care which carrier I'm on?

if the answer to the above question is No (must be on one of the big four), then... what's to stop me from sign up NO contract on, say Verizon, then dropping that service in a month and moving the phone to my MVNO?

 

[HalfNelson]

yep, the in store thing and a concern about AT&T not liking that apple is doing it and removes the per device discount for bring your own. If they removed it, for me, my service bill would then be $25 more a month because I am on the 15GB plan.

The $25 discount that AT&T gives you, is for remaining off contract. That is it. the only way you loose that is if you purchase a phone through AT&T at a discounted price in exchange for signing a two year service contract. AT&T does not want people to sign 2-year service contracts anymore, so the $25/month discount is how they are incentivizing people to stay off contract. They don't care how you get your phone, they care that you stay OFF contract, which means they didn't have to buy your phone for you.

 

[steele711]

I called Apple and asked for some more details on the program and the employee that helped me said, "If you are not eligible for an upgrade with your current carrier, you will not qualify for the iPhone Upgrade Program"

 

[eww7633]

I called Apple and asked for some more details on the program and the employee that helped me said, "If you are not eligible for an upgrade with your current carrier, you will not qualify for the iPhone Upgrade Program"

Since this program is only running in the retail stores, I wouldn't put too much stock into what you heard over the phone. They probably have no idea or training on how it all actually works.

 

[JFK1979]

Literally double the price of T-Mobile's offering. But includes AppleCare+.

here are T-mos prices if you add the $8 protection/insurance that is not included in the JOD fee it comes up pretty close to Apples program:
http://newsroom.t-mobile.com/news/t...g-your-phone-with-jump-and-jump-on-demand.htm

 

[bradl]

So don't kill me if this doesn't come true, but I have a friend that works at the Apple Store (used to work there myself years ago) and I asked her "what if I just want to upgrade with [Apple] and stay with my carrier? Can I upgrade with [Apple] even if AT&T says I'm not eligible"? She said yes, this program is not a "true" upgrade. It's like a line of credit you get toward the phone that is paid off eventually.

It just sucks for us to find out everything on Saturday to be sure.

Since this program is only running in the retail stores, I wouldn't put too much stock into what you heard over the phone. They probably have no idea or training on how it all actually works.

Agreed. Seeing that this is offered in the Apple Retail Stores, Saturday is going to be irrelevant for those wanting to use the Apple Upgrade program, unless you can pre-order in the store.

However, this does bring up another problem. Referencing the following thread:

Angela Ahrendts: 'The Days of Waiting in Line' at Apple Stores are Over

The update program is going to exacerbate the very thing that Ahrendts is eliminating. With AppleCare+ being included, getting an unlocked phone, and paying less during the first 12 months versus ATT's Next 12, there are going to be MORE people waiting in line the day the phones launch in the stores. I don't know if Apple realizes that while the update program has a lot of advantages, they've shot themselves in the foot as far as lines on product launch day goes.

BL.

 

[neurocutie]

I don't know if Apple realizes that while the update program has a lot of advantages, they've shot themselves in the foot as far as lines on product launch day goes.

Why would Apple be unhappy that even more customers will now be locked in to the iphone for the foreseeable future? Unlike most of these carrier upgrade programs, Apple's pretty much guarantees that these customer will be iphone customer for a long time... long lines at product launch is what nearly all vendors would want...

 

[bradl]

Why would Apple be unhappy that even more customers will now be locked in to the iphone for the foreseeable future? Unlike most of these carrier upgrade programs, Apple's pretty much guarantees that these customer will be iphone customer for a long time... long lines at product launch is what nearly all vendors would want...

Because this goes against the issue that Ahrendts brings up, which is the lack of respect for the customer's time. They already know that the phone is going to sell, and they don't want a repeat of the issue they had with the iPhone 4, with very limited stock, crashing of multiple carrier's websites, crashing of Apple's websites, hellaciously long lines, only to be told 3 hours after you finally get to the front of the line that they don't have any more phones, and that they are on 8 week backorder.

As someone did point out in that thread:

I think the lines were good publicity at one point but those days seem to be long gone. I think the iPhone 6 launch killed it.

Since the AW and Macbook were released, they were trying to find the balance between respect of the customer's time and the shopping experience. This may cause yet another imbalance.

BL.

 

[neurocutie]

Because this goes against the issue that Ahrendts brings up, which is the lack of respect for the customer's time.

as I think you're really saying... I don't think Apple cares *that much* about the long lines and out of stock problems -- its just good PR to pretend to care. Otherwise it would be easy for them to allow folks to buy online, not just at the Apple stores, do credit checks online like every credit card company already does. There is no need for in-store only transactions for this upgrade program. And why tie it to the big four carriers, forcing a carrier-specific account review or activation? Just sell the phone or the financing program and get rid of the complications...

(they probably get a small kickback from the carriers for activations... not enough of a reason to tie it to the big four though.)

 

[MikeyMike01]

I was prepared to pay roughly $800 for a new iPhone, but now I think I might be better off going with this plan. Getting a subsidized phone like Next or Jump is not an option for me, and I'd of course rather upgrade to the 7 when it comes instead of waiting until the 7S like I did with the 6. It seems to cost a little more in the end but: I don't have to lay out $800+ right this second, I can upgrade to the 7, and I get AppleCare+.

What happens if you decide you'd like to stop? Can I decide the 7 isn't for me, (or the 7s, or the 8...) and pay off whatever balance the current phone is owed and then continue using it without future payments?

 

[DustinLH00]

I was prepared to pay roughly $800 for a new iPhone, but now I think I might be better off going with this plan. Getting a subsidized phone like Next or Jump is not an option for me, and I'd of course rather upgrade to the 7 when it comes instead of waiting until the 7S like I did with the 6. It seems to cost a little more in the end but: I don't have to lay out $800+ right this second, I can upgrade to the 7, and I get AppleCare+.

What happens if you decide you'd like to stop? Can I decide the 7 isn't for me, (or the 7s, or the 8...) and pay off whatever balance the current phone is owed and then continue using it without future payments?

1) I don't think Next or Jump are considered "subsidized"
2) Apple's plan is a 24 month finance plan with an early upgrade option, so not sure why this would be an option for you when Next or Jump (which are basically the same) are not
3) You don't have to decide to stop. You pay your device off after 24 months and just don't exercise the early upgrade option

 

[bradl]

I was prepared to pay roughly $800 for a new iPhone, but now I think I might be better off going with this plan. Getting a subsidized phone like Next or Jump is not an option for me, and I'd of course rather upgrade to the 7 when it comes instead of waiting until the 7S like I did with the 6. It seems to cost a little more in the end but: I don't have to lay out $800+ right this second, I can upgrade to the 7, and I get AppleCare+.

What happens if you decide you'd like to stop? Can I decide the 7 isn't for me, (or the 7s, or the 8...) and pay off whatever balance the current phone is owed and then continue using it without future payments?

That's exactly what you'd do: continue paying on the phone that you have, and when it is paid off, you own it outright. No other payments would be required.

EDIT: Dustin ninja'd me.

BL.

 

[_Dubs_]

All I need to know, like others have said, is will I still get my $15 discount/month from AT&T if I do the Apple Upgrade? If so, it's an easy decision for me to go with the Apple program. If not, stick with AT&T.

 

[jmelrose]

I am trying to weight options on upgrading to a 6S 128GB on ATT

I am an annual upgrader. I'm moving from a 6+ to a 6S (not plus) and just paid off the balance due to ATT for the 6+ on their NEXT program. Nextworth gave me about $500 for trading it in, which more than covered the amount which was still due to ATT.

I get Applecare+ when I get a phone.

So if I understand correctly:

AT&T Next: I pay around $45/month for 18 months, I can upgrade my phone in 12 months, I keep the phone once it is paid off either via installments or paying off the balance early.

Apple Upgrade: I pay around $45/month for 24 months. After 12 months I can trade in my phone towards the next year's model, or I can keep the phone and continue making payments. If I don't upgrade, I own the phone after 24 months. If I do upgrade, I trade in the phone PLUS I start the 24 months of payments over again? Applecare+ included.

So essentially by trading in towards the upgrade with Apple, I'm paying off my second 12 months and then restarting again with the upgraded model?

There is zero snark/sarcasm here... I'm just trying to get my head around which offer appeals to me more.

 

[DustinLH00]

I'm moving from a 6+ to a 6S (not plus)

You are the third person I have seen this week that is moving from a 6 Plus to a 6S. I wonder how common this is going to end up being. You won't miss the larger screen? Is it a comfortability/portability decision?

 

[PinkyMacGodess]

If you use a credit card to pay at the grocery store, do you worry about if you 'own' those groceries (or not) before your credit card balance is entirely paid off?

To me, it takes about 10 minutes worth of work (either on paper, or in a spreadsheet) to figure out the total cost of buying with a subsidy, or buying with a device installment plan. Then you know what's going to cost you least. In some cases, the subsidy is cheaper. In other cases, the device installment plan in cheaper.

I don't get what's hard about that, or why the concept of 'ownership' is suddenly important to some folks, when IMO nothing's really changed with it (in terms of phones).

Because Apple, through this new program, offers 'unlocked' phones to be used on 'any' carrier.

If AT&T 'locks' the iPhone to their contract, who really 'owns' it? You?

Has AT&T announced whether they are going to require a lock for any of these iPhones?

I'llw ant to know that before calling this any thing other than a new way to subsidize the device.

 

[PinkyMacGodess]

You are paying to eventually own the device just like any other payment plan. The only difference is you can trade in your device to pay for the remaining 12 payments after one year. You can...you don't have to, it's just an option. You can just as easily keep paying the monthly amount for months 13 through 24 and then the phone is yours free and clear.

It would make more sense to have a 14, or 16 month buyout rather than 24. At least to me. I usually gift my iPhones to other family members. I suppose they could pay the last 12 months? Hmm...

 

[outlanderbz]

All I need to know, like others have said, is will I still get my $15 discount/month from AT&T if I do the Apple Upgrade? If so, it's an easy decision for me to go with the Apple program. If not, stick with AT&T.

I have brought this up a few times in this thread already. This is my concern also. Many have said that AT&T doesn't really want to worry about being in the hardware business but I do not buy that. I think they want your old phone's back. I think I am going to stick with Next this year and see how this all shakes out. Last thing I want to lose is my $25 off my $40 on my device 15GB family plan.

not to mention this have to go to a store nonsense...

 

[bradl]

Because Apple, through this new program, offers 'unlocked' phones to be used on 'any' carrier.

If AT&T 'locks' the iPhone to their contract, who really 'owns' it? You?

Has AT&T announced whether they are going to require a lock for any of these iPhones?

I'llw ant to know that before calling this any thing other than a new way to subsidize the device.

The issue you're having here is that there is no subsidy. If you notice that regardless of which way you approach it (Apple update program, or ATT Next), you are paying the full retail price for the phone. You'll be paying the $978 (price for the 6S at 128GB as an example). You are simply making monthly payments on it in addition to the phone service.

This isn't locking you into their service at all; you could pay off the rest of the phone and own it outright, or turn in the phone (which would cover the remaining balance left to pay on it) and walk away.

ATT's other conditions would still apply for NEXT, however; this means that if you get the phone through ATT, it will be locked to ATT until you fulfill the terms of the payments. After that, pending good standing, they will unlock the phone. The Apple Update program has no such restriction, as the phone would already be unlocked, as you already noted.

BL.

 

[jmelrose]

You are the third person I have seen this week that is moving from a 6 Plus to a 6S. I wonder how common this is going to end up being. You won't miss the larger screen? Is it a comfortability/portability decision?

The size definitely wasn't a huge issue for me, but the larger screen never became something I found more useful than the 5S's. I told myself it was an experiment to try for a year and if I didn't like it, no harm done. The part I am more worried about missing out on was the image stabilization in the 6+ camera. I also will like being more comfortable (less nervous) using the phone with one hand.

 

[jmelrose]

I have brought this up a few times in this thread already. This is my concern also. Many have said that AT&T doesn't really want to worry about being in the hardware business but I do not buy that. I think they want your old phone's back. I think I am going to stick with Next this year and see how this all shakes out. Last thing I want to lose is my $25 off my $40 on my device 15GB family plan.

not to mention this have to go to a store nonsense...

I just got done unlocking my phone with ATT and I asked about the discount. I was worried that since I paid off the balance, I was no longer on the "Next Plan" and the monthly rate would go up. Apparently the rate goes up if you go back on contact, but otherwise the $25 off sticks. I asked what happens if I get a new handset from Apple and not ATT and they said it didn't make a difference. I'm off contract and therefore get the $25 discount on the data plan.

 

[bradl]

I just got done unlocking my phone with ATT and I asked about the discount. I was worried that since I paid off the balance, I was no longer on the "Next Plan" and the monthly rate would go up. Apparently the rate goes up if you go back on contact, but otherwise the $25 off sticks. I asked what happens if I get a new handset from Apple and not ATT and they said it didn't make a difference. I'm off contract and therefore get the $25 discount on the data plan.

This actually sounds like another bonus for the Apple update program. By going through Apple, you still wouldn't be on any of the Next plans, meaning the $25 discount would still stick if you purchased through the update program. That way, at least you know that the bill for your service wouldn't increase.

BL.

 

[jmelrose]

This actually sounds like another bonus for the Apple update program. By going through Apple, you still wouldn't be on any of the Next plans, meaning the $25 discount would still stick if you purchased through the update program. That way, at least you know that the bill for your service wouldn't increase.

BL.

Agreed. I am looking at going with Apple since the Applecare+ is wrapped up in it. With ATT Next you still have to pay for the AC+ as an add-on (not financed).

I was thinking the upside to the Next was being able to pre-order but I see that you just make an appointment to get your phone when you do the Apple Upgrade pre-order instead. Sounds good to me.

 

[aristobrat]

If AT&T 'locks' the iPhone to their contract, who really 'owns' it? You?

You own it.

It's common practice for US carriers to lock phones that are being paid for monthly (either via 2-year contracts, or installment plans like ATT Next, etc) so they can only be used on their network (until paid for).

Locks aren't on the contract level. If you're still paying for your phone, you're free to sell that locked phone at any time. Anyone wanting to use it on the carrier that it's locked to can do so. The phone is locked to ATT's network, not to your specific contract.

IMO, it's unusual (but cool) that Apple isn't locking these phones that it's selling on monthly payment plans. They may be the first major player to not do so.

 

[outlanderbz]

Agreed. I am looking at going with Apple since the Applecare+ is wrapped up in it. With ATT Next you still have to pay for the AC+ as an add-on (not financed).

I was thinking the upside to the Next was being able to pre-order but I see that you just make an appointment to get your phone when you do the Apple Upgrade pre-order instead. Sounds good to me.

My wife has a 5S that is off contract and I just paid the remaining balance on my Next iphone so we are both clear to do what we want. I am going to do 1 more year on Next with the new 6S and see how this apple program works for others. I do not like the having to go into the store thing. They are close to me but I can see it getting messy and ending up in some backorder situation. I also want to see if AT&T responds to this in any way by changing the per device discount.

Cost wise it is the same - device price plus applecare - so it really doesn't matter who I am paying the monthly installment to and I have no urge to leave AT&T. I can buy applecare + also. at the end of 12 months I can buy the phones, sell them, return half the applecare + and move to Apple only if for some reason I think that is better. end result is the same place either way.

To me, I really feel the 12/18 AT&T Next plan and the Apple Upgrade Plan are the same. I had the 12/18 plan for the last year and it worked out well. it actually made more sense to pay off the device and sell it, get a little profit instead of just handing over the phone.