'Apple Upgrade' Program Reportedly Launching Next Week

[NJRonbo]

How does this differ from just trading in your old one and financing a new one like most people are doing today already?

The BIG difference, if I understand correctly, is that Apple Care is not forced into the deal.

That means, for those of us who don't want Apple Care, we will be paying less to lease the phone than we are now, though certainly, hardware costs are going up.

 

[sw1tcher]

Here is some advice: if you need to finance a new phone or computer buy a refurbished unit and save some money.

Even if someone can afford to buy the device outright, getting a zero percent interest loan to finance the purchase over a 24 or 36 month period isn't a bad idea.

 

[turbineseaplane]

I can’t remember the last Apple non-accessory I’ve paid for in full up front. If you can afford to pay something off over time interest free why not do that?

Because you're still paying full MSRP when doing a financing scheme, even at 0%.

Preowned or even new on sale are far more prudent ways to go about it.
That will become even more true here with them axing AppleCare+ out of the deal now.

 

[imola.zhp]

Klarna is predatory lending, this is a new low for Apple.

 

[johnediii]

They are going to position it as a way to have lower payments vs current financing options.

This should help folks stomach the $2500+ iFold pricing.

Just like a car dealership, they will get people thinking in terms of "how much payment can you afford?"

Like I always say.
Apple is really a financial engineering firm nowadays, that happens to make tech products.

This is what happens with 15 years of the financial guy as your CEO instead of the innovation guy.

 

[turbineseaplane]

Klarna is predatory lending, this is a new low for Apple.

To keep "number going up", the behavior must go lower and lower.

Car lot financing schemes, jamming ADs in more and more and more places, jacking prices "because they can", pruning included accessories down to "here's your thing in a white box"...

This is the legacy of Tim Cook.

As i was posting this, @johnediii brilliantly hit on it in the post above this

 

[deckard666]

A great way to get (or keep) people paying for things they can't afford and probably shouldn't be buying.


But hey ... “number must go up”, right?

That’s the important thing here.

Um isn't that the whole consumer thing ? Most people dont need anything bar food and housing but they keep on buying a new pair of shoes or a book or tv etc etc etc

 

[Happy_John]

Even if someone can afford to buy the device outright, getting a zero percent interest loan to finance the purchase over a 24 or 36 month period isn't a bad idea.

It isn't a bad idea.

The worry though is that buyers might not take into account rises in other expenses while their income doesn't rise.

Deferring payment doesn't make the obligation to pay vanish. You can argue that's purely the responsibility the buyer, and it is, but the problem with regular monthly payments, as we've seen with subscriptions, is that they add up, and so the regular monthly outgoings creep up and are far higher than expected, leading to difficulties later down the road.

So I'd say, it's not a bad idea at all, if people are realistic and are on top of their budgeting, and factor in a safety net against price increases in all parts of their lives.

 

[STOCK411]

Again, I feel like the official details will be telling, especially wrt to those already in the IUP program, (and what happens to those in IUP who are want to do this)

IUP lets you upgrade every year, which makes sense.. New laptops rarely have many changes (outside of chips) Y2y so wonder what the breakdown is for upgrading early under this new program

 

[macman01101]

I used a margin loan from my Robin Hood account to buy my house. If my stock ever go down, I can just get a home equity line of credit to make my margin call.

And I use some of the extra to buy new iPhones every year. It’s not that hard people.

 

[sw1tcher]

Because you're still paying full MSRP when doing a financing scheme, even at 0%.

Preowned or even new on sale are far more prudent ways to go about it.
That will become even more true here with them axing AppleCare+ out of the deal now.

That is true. But you cannot get a new just released iPhone with a discounted sale price unless you switch carriers (e.g. free upgrade on us when you switch and with trade-in) and pay for one of the carrier's overpriced unlimted plans. And the iPhone will be locked to that carrier until it's paid off, or you have to stay with that carrier for the full term (usually 36 months) to get all the bill credits.

Some people might prefer to hold onto their grandfathered plans.

 

[daneoni]

Probably in anticipation of jacking the iPhone 18 prices up.

Sure its 1400 but you can finance it for 38 per mth for 36 mths

 

[turbineseaplane]

Probably in anticipation of jacking the iPhone 18 prices up.

Sure its 1400 but you can finance it for 38/m for 36 mths

Exactly this.
It's a very old playbook that is still used today at car lots.

Ask anyone who's ever worked in car sales. The goal is always steer folks towards financing schemes and get them thinking and talking in terms of "how much per month" and not at ALL thinking about the actual cost they will be paying over the long term (the MSRP and a lot more in car financing usually.).

 

[gummybear2026]

Next iPhone upgrade program requires kidney, arm & leg but you will be eligible for the iPhone Ultra.

 

[turbineseaplane]

If they REALLY want to juice this, make it a status symbol to be making payments.

Make a special color or model that is ONLY available through "Apple Upgrade".

 

[neuropsychguy]

I used a margin loan from my Robin Hood account to buy my house. If my stock ever go down, I can just get a home equity line of credit to make my margin call.

And I use some of the extra to buy new iPhones every year. It’s not that hard people.

Normally I pick up on sarcasm and satire, but I'm not sure if you are making a low key funny comment or are serious so I have to check in this case.

What you described is very complicated.

 

[gummybear2026]

Details are even more depressing (to me).


Apple plans to advertise the program as a way to have lower payments versus current financing programs. The company is planning to discontinue new enrollments for its current iPhone payment programs — the iPhone Upgrade Program and standard financing — to make way for the Apple Upgrade initiative.

Unlike the iPhone Upgrade Program of today, Apple Upgrade doesn’t include AppleCare.

Totally agree. The fact that the Macbook Neo is considered a lower cost device is laughable and not eligible for this program.

 

[gummybear2026]

Even if someone can afford to buy the device outright, getting a zero percent interest loan to finance the purchase over a 24 or 36 month period isn't a bad idea.

Where does this say it's a zero percent interest loan? Klarna is in the business to profit off customers who sign up for this upgrade program.

 

[turbineseaplane]

Where does this say it's a zero percent interest loan?

Good catch!

The Apple Upgrade service will work like a subscription and users can pay off the device early during their term, upgrade early to a new model or keep it at the end of the leasing period. In certain cases, those transactions will incur an additional fee. Like a car lease, it can also be returned at the end of the term.

 

[mattopotamus]

Even if someone can afford to buy the device outright, getting a zero percent interest loan to finance the purchase over a 24 or 36 month period isn't a bad idea.

While true, it really seems like there are two camps. People who can afford to drop $1k and people who cannot. The ones that can afford it pay outright and those that cannot finance.

 

[lenard]

If I can't get an unlocked phone on this program am out. Don't want to pay for something that someone else
controls.

 

[Nibo10]

Details are even more depressing (to me).


Apple plans to advertise the program as a way to have lower payments versus current financing programs. The company is planning to discontinue new enrollments for its current iPhone payment programs — the iPhone Upgrade Program and standard financing — to make way for the Apple Upgrade initiative.

Unlike the iPhone Upgrade Program of today, Apple Upgrade doesn’t include AppleCare.

Why is this depressing? It offers anyone who doesn’t want Apple Care the chance to pay less, while allowing those who want it to add it separately as a yearly or monthly cost alongside the upgrade. This arrangement is a win-win.

 

[turbineseaplane]

Where does this say it's a zero percent interest loan? Klarna is in the business to profit off customers who sign up for this upgrade program.

Klarna is a money making operation, right?

I'm not sure why folks think they aren't making money off you somehow if you use their "services".

 

[turbineseaplane]

Why is this depressing? It offers anyone who doesn’t want Apple Care the chance to pay less, while allowing those who want it to add it separately as a yearly or monthly cost alongside the upgrade. This arrangement is a win-win.

For that slice of user yes, but what tends to happen with an unbundling is that the discrete offerings on their own add up to more money overall.

It is a win win ... mainly for Apple though.

You have to remember, as the forum loves to point out, Apple is a business.
Basically every single they do now, every tweak, every addition or subtraction or change is to make them more money.

 

[macduke]

I wonder if they're going to offer a 36 month option on the iPhone Ultra, since it's supposed to be so expensive? Although it seems odd that the iPhone Pro costs as much as the iPad Pro, in many cases more depending on models, but the iPad Air will get 36 month terms? Doesn't make sense.

They're definitely expanding this program because of the price increases. They know many people can't afford this anymore. Even someone like me isn't seeing the value proposition here, and I upgrade every year. Why? Because I would upgrade every two years anyway, and it was the same price for me every year for a long time. Even with the $100 increase last year, I was already paying for the 256GB Pro, so it didn't change my monthly payment. If we were going into year two of iPhone Ultra, and year one was mostly without issues, I might consider the 36 month plan for that.

Even if someone can afford to buy the device outright, getting a zero percent interest loan to finance the purchase over a 24 or 36 month period isn't a bad idea.

Yeah, I can afford it, but I do this all the time and leave my money invested and earning interest.

That being said, this new program is probably better for someone like me who has never had to use AppleCare and has the money to replace a device. But that's only if there is no interest or fees. With Klarna, I highly doubt it.