daneoni
macrumors G5
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Apple Upgrade: 20 Things to Know Before Leasing an iPhone, iPad, or Mac
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Skwoodge
macrumors regular
"20 Things to Know Before Leasing an iPhone"
1) Don't
2) Don't
3) Don't
4) Don't
5) Don't
6) Don't
7) Don't
8) Don't
9) Don't
10) Don't
11) Don't
12) Don't
13) Don't
14) Don't
15) Don't
16) Don't
17) Don't
18) Don't
19) Don't
20) Don't
1) Don't
2) Don't
3) Don't
4) Don't
5) Don't
6) Don't
7) Don't
8) Don't
9) Don't
10) Don't
11) Don't
12) Don't
13) Don't
14) Don't
15) Don't
16) Don't
17) Don't
18) Don't
19) Don't
20) Don't
sw1tcher
macrumors 604
You own it when you pay off the difference between purchase price and total lease payments made.
In the case of a base MBA priced at $1,299.00, you can choose either a 24 month lease at $34.99/mo or a 36 month lease at $24.99/mo
$34.99 x 24 months = $839.76
$24.99 x 36 months = $899.64
At the end of the lease period, you just pay the difference if you want to keep the MBA.
At the end of the 24 month lease, you'd have to pay $1,299.00 - $839.76 = $459.24
At the end of the 36 month lease, you'd have to pay $1,299.00 - $899.64 = $399.36
Do that and the MBA is yours. You own it.
Rafagon
macrumors 68000
Lost me at postpaid plans only.
Rafagon
macrumors 68000
That's a lot of wasted bytes here on MacRumors just to say the same thing 20 times.
Skwoodge
macrumors regular
You're still gambling that the Spigen will do what the tin says. I support 1000+ phones. It doesn't always do what it says. 😉
And I was referring more to MacBooks than phones, but my opinion that AppleCare+ on a lease is a must still stands.
Skwoodge
macrumors regular
I've been using Spigen cases for years. I've cartwheeled my phone across asphalt, concrete, rocks, and many things over the years, and my phones have always been fine. I still have Apple Care because anything can happen, but they've been very reliable cases.
Skwoodge
macrumors regular
sw1tcher
macrumors 604
It's not hard to get around that.
1) Sign up for a postpaid plan using eSIM #2 on current iPhone. Pick the cheapest plan.
2) Once line is active and working, buy new iPhone through Apple Upgrade and activate it. You'll be transfering eSIM #2 from old iPhone to the new iPhone. This will become eSIM #1.
3) Since the new iPhone is unlocked, transfer eSIM #1 from old iPhone to new iPhone. This will become eSIM #2
4) After you verify all eSIMs are working, cancel the postpaid plan (eSIM #1 on new iPhone). Do this within 2 - 3 days of activating postpaid line. When you cancel it within 3 days, the carrier will waive activation fee. You'll just pay a few dollars for the 2-3 days of service you had it for.
5) Delete eSIM #1 from new iPhone.
jz0309
macrumors P6
keep the revenue steady and increasing ...
as tech pricing has been going up significantly, "new lower payments" make it easier for people to afford new tech
Completely disagree. It’s expensive insurance. I have cracked one iPhone screen in my life, and it was covered by my credit card (minus $50). Over the Apple devices I have owned I have saved the cost of several iPhones by not having AppleCare. I understand I will be unlucky from time to time but it more than comes out in the wash.
I looked at the numbers and the trade-in Back Market would offer for my phone in good condition with some marks was within a dollar or two of the end-of-lease value. Knowing how Klarna will describe fair wear and tear and police it is crucial. I imagine Apple knows the difference between a little dent at the corner and a cracked screen — and will not want enraged customers — but I’d love to know. In theory, taking the guesswork and randomness out of the trade-in is potentially pretty interesting, but the devil is in the details…
Plutonius
macrumors G4
The amount ive saved over the years from not buying any insurance (other than home, car and life), especially for random electronics more than makes up for the purchase of several new devices if i ever broke one (never happened but ive dropped them plenty). Plus you can add the interest you can earn on investments from money saved over time.
Insurance doesnt make financial sense for cheaper things unless youre breaking phones left and right. And if someone can barely affort a device, id argue they cant afford the luxury of insuring them on top so i dont see a scenario where it makes sense. The only one I see is for someone who has money and is just paying more for the perceived peace of mind regardless of the net gains or losses. Well i guess thats also what insurers are banking on, you can insure a 30$ purchase now its wild.
If you have kids, it's a foregone conclusion that they will at some point break yours/their devices.
davitur
macrumors newbie
Great question! Let's do the math:
Toby walks into the Apple Store and decides to buy an iPhone Pro for ($1099) using the upgrade program. (We'll exclude tax and any cellular service fees, to try and keep it simple). They do the 24 month option with Klarna for $31.99.
- Month 1: $31.99 (Cumulative Klarna payment: $31.99)
- Month 2: $31.99 ($63.98)
- Month 3: $31.99 ($95.97)
Toby decides they don't like the phone and resells it to their friend Andrew for $900. Klarna doesn't care, because their contract is with Toby. Toby is past his 14-day cancelation policy, so he has to pay Klarna the remaining 21 monthly lease payments and the remaining phone payout. In essence, it is the MSRP less what he paid, so $1099-$95.97 = $1003.03.
Klarna expects this amount to be paid to them before the end of your 24 month contract. If you don't pay Klarna the full amount, they are more than happy to send you to collections and trash your credit. (remember that soft credit check?)
So, if Toby is honest and pays his full bill to Klarna, he is out $103.03 on this transaction and doesn't have a phone. (Sales tax and potential cellular early termination fees apply in reality, so the loss is likely more than this.)
Note: The math looks similar with Apple Card Monthly installment, only the amount paid is $45.79x3=$137.37. So, remaining balance due to Apple Card is $961.63. Klarna likely accepts customers with much lower credit scores than are required for Apple Card.
Yup. I have used my Apple Card with iPhone upgrade for years for the cash back. Guess that isn’t allowed anymore.
Right and i did say if youre breaking phones left and right. Also I was replying to someone who said it was dumb not to get apple care+ for any device.
Regarless, you just have to look at yearly average spending for repairs or replacements vs insurance spending over time to see if it makes sense for you.
But kids is a good point, im awaiting a first child so maybe ill reconsider my position haha
iPhone 8 Plus, iPhone XS Max, iPhone 12 Pro Max, LG G8, Pixel 3 XL, OnePlus 9, Pixel 7 Pro, S23 Ultra, S24 Ultra, OnePlus 12, iPhone 16e, iPhone 16 Pro Max, and iPhone 17 Pro Max. All protected by Spigen Tough Armor. None of them have broken. I even chucked my 8 Plus off the second story balcony onto the tile floor below one night when I was drunk to demonstrate how good the case is to my roommate at the time and it was unscathed.
Not here. The maximum the lease can cost you is the full MSRP of the device.
Mac_tech
macrumors 6502
You can use your Apple Card. The author of the article didn't do their research as one can use a credit card as well.
From the apple upgrade page:
"Customers can also earn 3 percent Daily Cash back when making their lease payments with Apple Card"
"You can use all debit cards and most major credit cards for your Klarna payments. However, some card networks, like AMEX and UnionPay — and some card issuers, like Chase and Capital One — are not accepted at Klarna.
Apple accepts major credit and debit cards for charges associated with AppleCare and any accessories that are not financed. Apple Pay and PayPal are not accepted for Apple Upgrade."
bunnicula
macrumors 68040
Hmm... as iPhones go, it still makes more sense to do a trade in (or sell outright) and buy the phone using Apple Card for zero percent. I haven't do the math on the MB, but I assume it still is a better deal overall. I'm most concerned with the damage assessments and not owning my device. It seems like an unnecessary step, though I admit it's good if you can qualify for Klarna and not Apple Card (or pay cash outright).
davitur
macrumors newbie
The Apple revenue incentive is simple, they get the full MSRP retail sale (less kick-back) when the customer walks out of the store with the new phone. Klarna is financing the sale.
I'm still trying to understand Klarna's revenue/profit model. Are they hoping people cancel contracts early and send back the phone sooner? It feels like Klarna is betting on the resale value of the used phone market. Or will they will be aggressively charging "damage" fees for those without AC+?