'Apple Upgrade' Program Launching on Tuesday

[AdmiralKirk]

For the same reason I tell people not to lease cars, Don’t do this either.

“you’ll own nothing and be happy”

That's not sensible advice in lots of cases

In the UK I pay £400 a month for 3 years for a brand new Kia. I get free servicing for 3 years. It's under warranty for anything that isn't "fair wear and tear". I do about 10,000 miles a year, so nothing wears out after 30,000 miles after 3 years except the tyres. At the end of the 3 year agreement I get a new car and do the whole thing again.

Or £400 a month can cover a used car with a loan. Something that has already had decent use, maybe an intermittent problem or two to solve. I have to pay for servicing, repairs, and after 3 years it's probably worth whats left on the loan.

I know which one I'd rather. Leasing isn't automatically rubbish because it isn't ownership. Leasing exists for a reason, and it's often cheaper than ownership with less risks.

 

[Lounge vibes 05]

Buying an iPhone from Apple directly using Apple Card Monthly Installments gets you an unlocked device. It's not using carrier financing. But, you have to have an Apple Card and live in the US.

This is incorrect. If you want the 0% APR, you have to connect it to one of the big three carriers at checkout.
This is a requirement that Apple added in 2024 or 2025, but now the only way to actually finance a phone through Apple is if you connect it to a carrier. Otherwise, you are paying the APR, or you are paying all upfront.

You can even verify this yourself, go to the iPhone page, select one, say that you want to set it up with a carrier later, and watch the 0% APR options vanish or become grade out.

 

[triumvirate]

I can't help but think capitalism is on its knees when I see this. The amount of credit pushing year on year is becoming extreme. Everything is credit and non-ownership. It feels like the death throes of everything becoming too expensive and CEO's trying every last option to extract cash in a high pricing environment.

I think the issue is more so poorly-regulated capitalism and people today being so pampered and assuming they deserve nice things. We live in the best times thus far for a human being to live & yet many trap themselves into leasing everything on broken credit. Many people live way above their means because they’ve been told they deserve to… but these tech prices are getting bizarre.

 

[Alexrat1996]

At least current iPhone upgrade users will have an option to upgrade as normal

I think they’re gonna have an option when you do the preapproval process in the Apple Store app is going to say iPhone upgrade existing users only.


I’m glad according to what is being said they’re gonna keep it.

 

[Seamaster]

“We could not be more excited about you owning nothing!”

 

[Mlrollin91]

You can replicate all of this simply by using Apple Card Monthly Installments.

This is simply not true. You cannot replicate the ability to trade in the phone and have the balance forgiven. You have to pay off the device and trade it in for likely less value, or deal with selling it. I’ve opted for the iPhone upgrade program since it first launched a decade ago because of the ease of upgrading yearly.

 

[svish]

Don't think this program will ever expand outside the US. It is good to see that Macs and iPads too will be a part of the program. Not sure how many opt for this.

 

[G19]

No debt. No more unnecessary "things" ... this is the way.

 

[Knowimagination]

You can replicate all of this simply by using Apple Card Monthly Installments. 0% APR is free money and you'll own the device outright at the end. If you can't afford the payments of a product when divided by 12 or 24 monthly payments, you probably shouldn't buy it.

Except apple wont allow me to do this on an unlocked phone.

Up until recently I was able to get around this with the T-Mobile model but now that they have closed that loop there are no options for unlocked phones and I doubt that this new plan will be any different.

 

[hovscorpion12]

Don't think this program will ever expand outside the US. It is good to see that Macs and iPads too will be a part of the program. Not sure how many opt for this.

Yes. Klarna is offered globally.

 

[N0ughtsAndCr0sses]

Klarna being the service in use here makes me want to vomit.

What they said

 

[hovscorpion12]

No debt. No more unnecessary "stuff" ... this is the way.

No Debt is the way, however as the Ai push continues [with no signs of slowing down] prices will continue to rise.

I won't be surprised if the 18 starts at $999, 18 Pro starts at $1,299, iPhone Air starts at $1,199 and the 18 Pro Max at $1,599. All the way to $2,200.

By 2028, I won't be surprised if $1,500 is the official base price of all smartphones. Don't get me started on PC/Macs prices going forward.

 

[Anon_99154842]

...

Dude, read the sentence literally right before the portion you highlighted… Come on, now…

 

[PatriotInvasion]

Dude, read the sentence literally right before the portion you highlighted… Come on, now…

Just because you have to choose a carrier for activation does not mean the phone is "locked" to that carrier. You are still using Apple Card Monthly Installments so the financing is between you, Apple, and Goldman Sachs. To the carrier, the phone is essentially paid in full and is unlocked.

As Apple's own support page states, "An iPhone purchased with ACMI is always unlocked..."

What are we not understanding?

 

[Knowimagination]

Just because you have to choose a carrier for activation does not mean the phone is "locked" to that carrier. You are still using Apple Card Monthly Installments so the financing is between you, Apple, and Goldman Sachs. To the carrier, the phone is essentially paid in full and is unlocked.

As Apple's own support page states, "An iPhone purchased with ACMI is always unlocked..."

What are we not understanding?

You are not understanding that it is the inability to BUY the phone that is the problem. Not whether or not a phone I cannot buy would be unlocked or not.

 

[PatriotInvasion]

This is simply not true. You cannot replicate the ability to trade in the phone and have the balance forgiven. You have to pay off the device and trade it in for likely less value, or deal with selling it. I’ve opted for the iPhone upgrade program since it first launched a decade ago because of the ease of upgrading yearly.

It is true. There are numerous 3rd party trade-in sites like ItsWorthMore.com that will quote you just about the cost of (or even higher!) your remaining balance on the the device to essentially "forgive" the remaining debt. I've been doing this successfully for years to always have the latest/greatest iPhone.

It's slightly more work, but you are not wedded to any program. Use the latest iPhone for 12 months, you'll owe 50% of its value to Apple Card to pay it off, and you'll get that value from a trade-in site after they receive it. Repeat.

You're basically just leasing the first 50% depreciation of the device every year.

 

[Martyimac]

All this chatter about leasing or going through the carriers or Apple card use.
Maybe I'm in the minority here but for at least the last 10 years, I have been buying iPhone from the Apple store outright using my OWN credit cards. No issues, no apple asking me if I want to align with a carrier since I always opt for an unlocked phone. Once I receive my new phone, I go right to my bank and pay it off fully, usually before any interest has accrued. And I am a senior on SS so fixed income and all that comes with that. And guess what, I have a GREAT credit score.

Choose your battles but going debt free 20 years + ago was one of the smartest things I ever did.

 

[PatriotInvasion]

You are not understanding that it is the inability to BUY the phone that is the problem. Not whether or not a phone I cannot buy would be unlocked or not.

Maybe that's our misunderstanding, but why do you want to buy the phone without a cellular plan? Thats not really a thing most people are worried about in the US because it's going to be bought and used on one of the big 3 anyway.

The point I was making is that the device is indeed unlocked when purchased through ACMI. So even if you're forced to choose a carrier at checkout, you can switch at any time.

 

[Knowimagination]

Maybe that's our misunderstanding, but why do you want to buy the phone without a cellular plan? Thats not really a thing most people are worried about in the US because it's going to be bought and used on one of the big 3 anyway.

The point I was making is that the device is indeed unlocked when purchased through ACMI. So even if you're forced to choose a carrier at checkout, you can switch at any time.

The point we are making is that those of us choose not to be on one of the big 3 have no way to take advantage of 0% monthly payments on our Apple Card with no real good reason as to why.

Also you can’t just choose a carrier you have to give an account number and pin with an account from the big 3 to even purchase.

 

[PatriotInvasion]

The point we are making is that those of us choose not to be on one of the big 3 have no way to take advantage of 0% monthly payments on our Apple Card with no real good reason as to why.

Also you can’t just choose a carrier you have to give an account number and pin with an account from the big 3 to even purchase.

Well your situation is a bit niche compared to the vast majority of buyers. We're both right in separate contexts.

 

[zenmacx]

Klarna being the service in use here makes me want to vomit.

Yes indeed... revolting

"You will own nothing and be happy"

And the number of people accepting this trash is even more revolting.

 

[bmustaf]

Makes sense, these things will, in the coming years, become more expensive than the cars a large portion of the population own/drive/lease...

 

[TJFDenver]

Unless you’re rich or can write off the expenses, buy last years model after the new model release + 6 months

That’s the financial / performance sweet spot

 

[Lounge vibes 05]

You are not understanding that it is the inability to BUY the phone that is the problem. Not whether or not a phone I cannot buy would be unlocked or not.

Also Apple’s terms and conditions state that you have to activate the phone with one of the big three carriers, within 60 days of purchase, and if you don’t, it’s considered fraud.
So literally the only way to do this appears to be purchasing the phone on a carrier, buying a month’s worth of service to that carrier, activating the phone with that carrier, and then canceling the service a month later. A convoluted costly process, and it also likely violates the terms of service.
So now, the phone may not technically be locked as in you can probably put a SIM card from a different carrier on it, but you have to connect it to one of the big three carriers when you purchase the phone, which for most people is basically the same as it being locked to that carrier. Because people aren’t going to swap, then swap again, then swap again.

 

[Lounge vibes 05]

Well your situation is a bit niche compared to the vast majority of buyers. We're both right in separate contexts.

No, you are stating that you can purchase an unlocked, as in not connected to a carrier, iPhone with 0% Apple card financing. This is not correct, you must connect it to a carrier, and you must activate it with that carrier.
You can say that it’s niche all day, that doesn’t make it not true. And there are several people who use prepaid carriers, government carriers, all sorts of other carriers.