Quicksilver867
macrumors 6502
Because a used (and likely succeeded by a new model after 12mos) iPhone is no longer worth full retail.
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Apple Upgrade: Is Leasing Your Next iPhone Worth It?
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Because a used (and likely succeeded by a new model after 12mos) iPhone is no longer worth full retail.
There's also the carrier subsidized option which may be the lowest cost option.
I too hate that it’s with Klarna which has a stigma attached to it but I get why Apple isn’t doing it themselves.
It’s just like the Apple Card being partnered with Chase. If Apple were to totally own all ends of it (like Apple typically prefers to do…) it gets messy. The more you start to look like a bank, the more the government starts to poke their heads in and push to regulate you like a bank. I imagine that’s something Apple (and many other tech companies) don’t want.
One approach would be to spin off an entire separate company focused on that (aka Apple Financial… maybe a subsidiary like FileMaker/Claris) but that’s not really how Apple likes to operate.
It’s just like the Apple Card being partnered with Chase. If Apple were to totally own all ends of it (like Apple typically prefers to do…) it gets messy. The more you start to look like a bank, the more the government starts to poke their heads in and push to regulate you like a bank. I imagine that’s something Apple (and many other tech companies) don’t want.
One approach would be to spin off an entire separate company focused on that (aka Apple Financial… maybe a subsidiary like FileMaker/Claris) but that’s not really how Apple likes to operate.
While I fully agree with most of your post, I recently bought an IPhone 17 Pro with my Apple card and didn’t have to finance through a carrier. Maybe I was one of the last to do that. But expect whatever carrier you choose to hit you with a “upgrade” fee… just because they can.
nburwell
macrumors 603
I like leasing my cars because I can get a new one every 2-3 years. I am not leasing an iPhone. I also have Apple Card so I prefer the 0% financing on iDevices, especially when Apple partnered with Klarna for this program. No thanks.
mansplains
macrumors 68000
Right, so if you choose to upgrade, you’re not paying full retail. However, if you don’t, you still had the device for 12 months, instead of not having it. It was worth full retail when you bought it.
Do you use one of the big three? The financing isn’t necessarily through them, but you must choose to either open a new line or select an existing line with one of them before you can continue. I tried it with my own 17 Pro Max shortly after release.
1rottenapple
macrumors 603
Some people, here upgrade yearly. I think this is for them, why no you can cust the cost down and the hassle of reselling. Me.... now my air is paid off.
mansplains
macrumors 68000
The amount of comments for articles relating to this topic almost treating consumer electronics as investments astounds me. Unless you’re being paid to have these devices, the best deal will usually be buying an older used model.
I was with Verizon for years and now been with AT&T for years. I do the "On Us" deals and my iPhone is essentially free, as long as I am OK with using the same phone for 3 years and then starting over. With Verizon, it used to be every 2 years which was even better, but now it's every 3 years for me. I will be eligible for an iPhone 18 Pro or whatever comes out this September. I may pay an extra $10/month to have the option to upgrade annually.
Of course, I don't believe for a minute I am really getting a free iPhone. Myout-of-pocket (taxes, surcharges, everything) is about $85 a month for unlimited talk, text, and data and the phone.
Of course, I don't believe for a minute I am really getting a free iPhone. Myout-of-pocket (taxes, surcharges, everything) is about $85 a month for unlimited talk, text, and data and the phone.
Scooby_Snacks
macrumors member
In 2030, the cities gleam with borrowed light, towers stitched from glass and algorithms, their windows reflecting lives that were never truly ours. The streets hum with silent drones and smiling billboards that remember what we once desired before we forgot how to want. Children grow up in subscription playgrounds, their laughter archived and monetized, their memories updated overnight by terms and conditions no one reads. Doors no longer lock because nothing inside belongs to you, and yet you are always the one under surveillance, your pulse and dreams streamed to distant servers that decide what comfort feels like. Somewhere, behind firewalled skies, a handful of unseen hands still owns the code that owns the world, while you cradle rented moments, leased identities, and trial versions of joy. They tell you this is freedom, this is progress, this is the end of burden and doubt—and in the softened glow of curated content, you whisper their creed with a tranquilized smile: you will own nothing and be happy.
CharlesShaw
macrumors 68030
I think this is for people who are paying for their leased cars using income they earn by delivering cold fast food to other people. They need a phone for this income.
Personally, I believe this new upgrade programme suits Macs better, though I am in no position to tell anyone how to spend their money. I simply wish to note that in the third option - paying the remaining price to own the device - the article should mention that the device can then serve as a trade-in for the newer device if you restart the lease with that model. Because resale value was included in the first two scenarios, it should be highlighted here as well.
Likely for revenue recognition purposes. If Apple did it themselves, they would most likely not be able to recognize the full revenue of the sale right away. In this Klarna arrangement, Klarna becomes the owner of the device and is leasing it to the customer. It's a 100% sale for Apple and they can recognize 100% of the revenue immediately.
Being a bank (essentially) would put them in regulatory hell, and let the current administration have their grip on them, like no Tim Apple nightmare has ever had.
100% this exactly. The more you walk like a bank and talk like a bank the more you start to get regulated like a bank. And Apple is already dealing with *enough* regulatory hell around the world for all kinds of other issues.
LogicalApex
macrumors 68000
The carrier deals are FAR better. I'm with T-Mobile and I would spend $0 owning an iPhone if I traded in my current phone of the new one (T-Mobile will give me bill credits for the iPhone cost). That's the cheapest way to own an iPhone and upgrade it... The best part... After it is all over I own the iPhone free and clear too! So no money out of pocket and I own my device.
In the FAQs, Apple says they give you 14 days to return your old device after you receive your new one.
xaqt93
macrumors 6502a
The only problem I see about leasing and people comparing the lease agreements to Phone Carriers is that with phone carriers, you are usually locked into some kind of contract. Not always, but like...the ones that are like, "Trade in your current iPhone and we will make the next one free" type of deals. You usually have to put it on a "Payment plan" and you get credited for the device payment to make it come out to $0/month for the current iPhone you got. If you decide to switch, you don't get the free iPhone anymore and you are hit with a bill for the pay off amount.
Me persoanlly, I don't like doing it that way. And again, this is just personal. I like to do everything in cash and my strategy has always been to just save money through out a year or two using my budgeting app, and then when it comes time, I have the money to just go in and buy the iPhone that I want in cash. Unlocked, no contract, nothing. I can do whatever I want with it because its my iPhone and I don't want to worry about giving it back, paying it off, or feeling locked to a carrier.
Again, just my opinion on it all. I won't personally be leasing or going through a carrier to pay off my iPhone. But again, that is just me. I know that does not work for everyone and I know everyones financial plan and system works different than mine.
Me persoanlly, I don't like doing it that way. And again, this is just personal. I like to do everything in cash and my strategy has always been to just save money through out a year or two using my budgeting app, and then when it comes time, I have the money to just go in and buy the iPhone that I want in cash. Unlocked, no contract, nothing. I can do whatever I want with it because its my iPhone and I don't want to worry about giving it back, paying it off, or feeling locked to a carrier.
Again, just my opinion on it all. I won't personally be leasing or going through a carrier to pay off my iPhone. But again, that is just me. I know that does not work for everyone and I know everyones financial plan and system works different than mine.
No for me. One reason is no upgrade path for the mini size, and the second reason is I can afford the full asking price upfront (and I’m not even rich rich)
Tying it to major carriers (who often have their own financing promos, the only reason the postpaid pricing makes sense for many) makes this a bad deal all around. I’m just hoping they keep the Apple Card financing options.
If you ask me, I think they're doing this because Chase is going to severely cut back or eliminate ACMI.
Just choose T-Mobile. As long as it's not a base model that has the $30 extra charge for not being activated on a carrier, it won't make you verify anything. Then when you get the phone if it prompts you to activate on T-Mobile just skip out of it, tell it that you didn't get the verification code. A few tries and it will give up and you now have a fully unlocked iPhone on your chosen financing method. Seems to also be the same for Apple Upgrade because I tried it yesterday and it let me get all the way to the part where you would apply for the Klarna financing.
Definitely a great program for Macs and I may well do that when I get my next one if the program is still around although trade in value with Apple for Macs absolutely sucks so I would have to try to sell it or hand it down to someone locally.