They subtract it from the cost of the phone and the remainder is divided into 24 equal payments.
Got a tip for us?
Let us know
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Apple Announces New 'Trade Up With Installments' 24-Month iPhone Payment Plan
- Thread starter MacRumors
- Start date
- Sort by reaction score
Apple has partnered with a bank. THe bank pays Apple for the device (likely at some number under retail but that both parties profit from) and the bank deals with the payments. THe bank takes the risk (since Apple is not a bank) and in the vast majority of cases profits because the buyer does not wish to default on their loan.
Loans are just the American way. Banks have sold us on theidea that we can have what we can't afford today by picking up an "easy to afford loan". Apple is capitalizing on the changing market (no more subsidies). I'd be more worried for Apple if they decided not to adapt.
Be worried for stupid people who put themselves into debt for things they WANT and can't afford. This is among the smarter loans that one can get as they donn't incur interest. Carriers are, however, starting to give incentives for buying through them (i.e. discounts). I know ATT Next is doing a buy one get one free deal right now. IMO you're a fool to not jump on something like that if you're already set on financing anyone. Not only is it a 0% loan, they're giving you another phone to go through them (essentially setting you in a two year contract on the second device).
[doublepost=1455820164][/doublepost]
Keep in mind ATT does run promos with their next. RIght now it's a buy one get one iPhone (I haven't looked into it in much detail, it may be specific models and colors, but even the base model means a $650 discount). You are required to keep the "free" phone with ATT for 24 months in order for it to come out free though (they calculate free based on monhtly bill credits so you cant just do the bogo, pay off the phone and leave).
Anyway, I had to return a Next device to ATT once and only once. It was pretty painless. I was a little nervous, but I just dropped it in a box with bubble wrap and slapped the label they gave me on it. It was taken off my account within a week of shipping. I am sure this increases the risk of error though (as happened to me with TMO, though eventually sorted). Not sure why ATT doesn't do on site returns. Would be so much nicer.
Last edited:
EXACTLY!
This sounds like a better deal to me but the devil is in the details so I'll wait and see. ON the surface from what I've seen though, this does sound better.
Good to know.
I believe the buy one, get one, required the free one to be a brand new line though.
I may be wrong but I think this is what I remembered from it.
Lol, everybody thought Apple was researching in making a car but all they really have done is researched and adopted the scheming, slimey and deceptive sales tactics of ******* car salesmen.
All these kinds of trade-in and installment payment programs do is obscure the real cost of the product. Nobody wants to buy a $800 phone up front, but paying $35/month for two years sounds a whole lot more affordable, eh?
Also trading back a product to the original company is incredibly stupid. Say the original phone retailed for $800 and Apple buys it back from you for $200 but then they turn around and sell it through an official "refurb" program for $450, Apple just made $1050 on a phone that only ever had an $800 tag on it. On top of that Apple stole $150 from you because you could have sold the phone for $350 on eBay yourself.
What is next? Is Apple going to offer a lease program with their own financing program so Apple can make 8% interest on lending you money to pay for 3/4 of the phone you have either return or re-finance after 12 - 18 months?
Lemmings...
All these kinds of trade-in and installment payment programs do is obscure the real cost of the product. Nobody wants to buy a $800 phone up front, but paying $35/month for two years sounds a whole lot more affordable, eh?
Also trading back a product to the original company is incredibly stupid. Say the original phone retailed for $800 and Apple buys it back from you for $200 but then they turn around and sell it through an official "refurb" program for $450, Apple just made $1050 on a phone that only ever had an $800 tag on it. On top of that Apple stole $150 from you because you could have sold the phone for $350 on eBay yourself.
What is next? Is Apple going to offer a lease program with their own financing program so Apple can make 8% interest on lending you money to pay for 3/4 of the phone you have either return or re-finance after 12 - 18 months?
Lemmings...
Unlocked eh?
So does that mean I can trade in my unlocked iPhone 5 (uses StraightTalk for service) and get a new iPhone that can work with my StraightTalk Sim Card?
So does that mean I can trade in my unlocked iPhone 5 (uses StraightTalk for service) and get a new iPhone that can work with my StraightTalk Sim Card?
Does this require in store activation on a major carrier like the original iPhone upgrade program? I am on Cricket and did not want to activate with one of the 4 major carriers just to get the financing. I would like to be able to use my Cricket SIM immediately without having to sign and cancel service with another carrier.
it is obvious that banks involve in all loans. "the American way" is not the best way, which is digging the hole deeper. that was why we had the real estate market crash and the worst recession ever. we save the economy by digging deeper. Do some research on the Fed printing money and paying the gov debt.
all of these loans are to fool alot of naive people into spending.
but my point is not about the bank, Fed, or loan. My point is that Apple revenue growth record is no longer based on logical consumer needs but now depends on consumer debt at a massive scale.
That's a good point. However I'm lazy and would rather not deal with that hassle and the risk of being scammed. I'll stick with the scam where I know how bad I'm getting screwed up front
No, next Apple will GIVE YOU a $200 check or gift card by signing up to pay $50 per month for a 16gb for 24 months! It's cheaper than free, they're paying you to take the phone! Lol. Never mind that over 24 months you would be paying $1200 for that $650 phone, that's just details, it's only $50 a month!
The fact that they have added a loan option doesn't mean their entire business model depends on massive consumer debt. I can concede your point if the majority of phones bought from Apple turn out to be financed through them. This being a relatively new program (this specific one being brand spa king new) I hardly see how you can make this assessment. Apple, in the US, always relied on consumer up front costs to be low on every model iPhone they ever sold beside he original.
To be clear about my "American way" statement, I wasn't saying is it the best or even a good way of thinking. But for a business to dismiss that this is how Americans buy stuff is foolish. As mentioned I would be more worried if Apple dismissed this way of selling product in the current market because people do very much want to finance phones. Once again, why worry for Apple? Worry for people who are willing to buy phones with money they don't have, if you want to worry about someone.
[doublepost=1455826213][/doublepost]
It did. It's easy to add a line and have them transfer phone a phone number from one line to another line (unless they change that, I did it when selling an unlimited
Line about two years ago) and then closing the old line. Since there are no ETFs the only caveat is the old line can't have a next device plan attached to it, but I think that's a logical given.
Last edited:
>The amount doesn't change based on how much storage you have.
Is there a reason for this? We paid a good $100 or $200 extra to have the additional storage, why does that difference go away on trade-in?
It seems to be universal, too. Pretty much all the "we buy your old phone" services give you only $10 extra or some other trivial amount for the larger capacities. Why is this?
Is there a reason for this? We paid a good $100 or $200 extra to have the additional storage, why does that difference go away on trade-in?
It seems to be universal, too. Pretty much all the "we buy your old phone" services give you only $10 extra or some other trivial amount for the larger capacities. Why is this?
[
These are probably heading to the refurb program and Apple doesn't see more money for refurbishing a 128gb versus a 16gb phone. And if not to the refurb program, they'll be sold in bulk lots where, again, they don't really see more for a 128gb phone versus a 16gb phone when the "per unit" value is calculated.
These are probably heading to the refurb program and Apple doesn't see more money for refurbishing a 128gb versus a 16gb phone. And if not to the refurb program, they'll be sold in bulk lots where, again, they don't really see more for a 128gb phone versus a 16gb phone when the "per unit" value is calculated.
Does this comparison seem correct for upgrading/trading in my current 5S 16GB to a 6S 64GB?
Apple program: 24*22.87=$548.88
TMobile: 27.09*24=$650.16, plus $99 upfront for 64GB= $749.16, minus $121 trade-in value for my 5S= $628.16
If my math is correct, this seems to point to the benefits of the Apple program if you are interested in a standard 2-year deal to own (not lease) the phone.
Of course there are still costs for data service. But if just comparing apples to apples for the cost of the phone, wouldn't it be better to get the phone from Apple and then bring it to TMobile? Am I missing something?
Apple program: 24*22.87=$548.88
TMobile: 27.09*24=$650.16, plus $99 upfront for 64GB= $749.16, minus $121 trade-in value for my 5S= $628.16
If my math is correct, this seems to point to the benefits of the Apple program if you are interested in a standard 2-year deal to own (not lease) the phone.
Of course there are still costs for data service. But if just comparing apples to apples for the cost of the phone, wouldn't it be better to get the phone from Apple and then bring it to TMobile? Am I missing something?
Apple today announced a "Trade Up With Installments" payment plan that will let users trade in an old iPhone, Android, or Windows Phone and put the value of that device towards a new 24-month iPhone installment plan (via CNET). Available only in Apple Stores within the United States, the new program is a combination of Apple's classic reuse and recycle program and the newer 12-month iPhone Upgrade Program that launched alongside the iPhone 6s and iPhone 6s Plus last year.
According to Apple, Trade Up With Installments is "really geared toward people who have older generation iPhones." As with most trade-in programs, the older model of the phone that is traded in, the lesser its value. With Apple's new initiative, a new factor is thrown in depending on the model of iPhone that users are looking to pay off on the 24-month installment plan. So, for example, if someone were to trade in an iPhone 4 for a 16GB iPhone 5s and receive maximum trade in value, the monthly payment would be on the lower end, equating to $14.58/month.
Using the same iPhone 4 to trade in for a 128GB iPhone 6s Plus would net a $35.37 monthly payment on the new program. AppleCare+ isn't included in these new plans, so users will have to pay extra if they seek the Apple iPhone insurance. Specifics weren't given regarding Android and Windows Phone value, but Apple ballparked their trade-in value to somewhere between $100 and $300, lining up with the monthly values of the iPhone 4, 4s, 5, 5c, 5s, and 6.
Unlike the iPhone Upgrade Program that offers a monthly installment plan but lets you upgrade your device yearly with a trade-in of your old device, the Trade Up With Installment program requires the device to be completely paid off before it can be traded in for an upgrade.
For a full breakdown on the trade-in values of old devices and the cost of new installment plans, check out CNET's comparison chart.
Article Link: Apple Announces New 'Trade Up With Installments' 24-Month iPhone Payment Plan
At least through the official Apple online trade-in program, the maximum trade-in value for the iPhone 4/4s recently decreased from $100 to $50 so I guess the in store trade-in program is a better bet for those with older phones. Still sucks that they require you to make a purchase immediately when you go into the Apple store to trade-in.
The $100 online trade-in used to be easy money to spend on Apple products. A month ago you could buy iPhone 4's on eBay for $45 and make a quick $55.
The $100 online trade-in used to be easy money to spend on Apple products. A month ago you could buy iPhone 4's on eBay for $45 and make a quick $55.
The now defunct subsidized model hid the actual cost of the phone. The new system, even with no interest, is still in your face every month. A family of 4 could easily see $120 a month for their phones in addition to the monthly wireless bill. If you did the math on the old vs new billing the difference may not be that significant. However, perception is another subject. I suspect that many will start seeing the actual costs and decide to delay new phone purchases unless the need to do so is great. Like my phone went through the washer or significant needed features arise. Thus, Apple may see a slow down of phones sales over time, somewhat like the iPad.
I really thought the iPhone 5C was going to be Apple's entrance into the emerging markets or BRIC with a new, lower price product. The bill of materials was not all that impressive and the retail price was shockingly high. You might as well spend another $100 to get the flagship iPhone instead. In the end it ends up sold and killed off with 8 GB models with fused memory.
I will just settle with a more affordable phone without any antics to "hide the price".
These were my hopes as well. The rumored 5SE would entice me IF the entry price was $400, but I am not getting my hopes up AT ALL based on what they did with the 5C. To some degree I am sure this is the goal though. They don't want to cheapen the brand. They are now more about giving more options (fit, finish, screen size) than price points.
Completely agree!
Friends have already told me that they have no reason to upgrade their 5S and 6/6+ units, and in my case I'm still using a 5. People tell me that once their device is paid off they will ride on the lower Service-only bill until their phone begins to break.
Ever since T-Mobile pushed the U.S. wireless industry towards separating Service charges from Device payments, it has become blatantly obvious what people are really paying for their devices.
The same people that were "spending" every time they put $199 down and signed a 2-year contract (and made 24 monthly payments to their wireless company to pay off the phone) every time they got a new phone?
That's been going on since smartphones came out in the early 2000s.
IMO, there's nothing new here, other than the $199 down barrier being gone, and people who don't buy a new phone every two years will actually pay less per month, for the first time ever (on most carriers).
Meanwhile, anyone wanting a new phone will pay monthly for it, just like they did back in the 2-year contract days.