Apple upgrade program math

Discussion in 'iPhone' started by mooty, Sep 10, 2015.

  1. mooty macrumors regular

    Joined:
    Mar 7, 2006
    Location:
    UK
    #1
    Hey Guys

    Humor me... am I understanding this correctly:

    Get Apple upgrade plan, lets say I pay for it over 7 years.

    With basic phone, thats $32.45 per month ($389.40 per year). Over 7 years assuming cost is fixed thats $2725.80

    During this period, I will get 6 phones (one on day 1, then a new one every year.). After phone 6 I decide its my last and I pay for 24 months from that point, which is the 7 years total.

    If I purchased these unlocked at full price, every year, I'd pay ($649 * 6) $3894.00 plus the cost of AppleCare which is included with Apple Upgrade Plan.

    My employer pays my phone contract for me, seems like Apple Upgrade plan is way more financially viable to me... am I doing the math right?
     
  2. spades1412 macrumors 6502

    Joined:
    Jun 12, 2009
    #2
    Buying outright at full cost each year.
    Basic iPhone 6s+, 16gb. $649 Applecare+ $129
    $649+$129= $778
    $778x6= $4668 total cost

    Apple Upgrade Plan
    $32.45x12= $389.40/yearly cost
    $389.4x7= $2725.80 total cost and you own the 6th phone after paying it off.

    There is a huge savings in going this route of $1942.20

    The difference using the Apple Upgrade Program, trading in, and upgrading yearly is you only own 1 phone at the end of it all.
    Buying outright at full cost means you own each phone free and clear with Applecare+ every year. Im sure you could sell each phone when upgrading and make make much more then the $1942 you end up saving.
     
  3. mooty thread starter macrumors regular

    Joined:
    Mar 7, 2006
    Location:
    UK
    #3
    Sure - I guess a benefit to me is that, my phones are usually not worth selling after a year with bumps, scratches etc. Assume Apple doesn't care what condition you return the phone in... I hope!
     
  4. LKN macrumors 6502a

    Joined:
    Oct 3, 2012
    Location:
    Yorkshire
    #4
    I think bumps and scratches apple wont mind!!

    They may have some sort of criteria such as, no third party parts, switches on and off etc. but allows some kind of wear and tear as long as it doesnt stop you from using the phone i think
     
  5. n8ivg33k macrumors newbie

    Joined:
    Sep 6, 2007
    #5
    The on
     
  6. n8ivg33k macrumors newbie

    Joined:
    Sep 6, 2007
    #6
    The one caveat I read is that Apple and the carriers will be refurbishing and selling the phones turned in on the lease programs. This could reduce the amount you get in the resale market. Not saying it couldn't work but something to keep in mind.
     
  7. jediuia macrumors regular

    Joined:
    Sep 12, 2014
    #7
    Does this price get added on to your phone bill, or a separate invoice from Apple?
     
  8. spades1412 macrumors 6502

    Joined:
    Jun 12, 2009
    #8
    Not sure. Im guessing the payment will be made directly to the partner bank Apple is using for the financing plan.
     

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