Did I Upgrade A Year Too Early?

[Jabar18]

Had an iPhone 6 since 2015 launch. Had to get it replaced with another iPhone 6 last year from apple, for $99 as the battery on my original one was toast. My battery capacity on my year-old iPhone 6 was down to 90% when I ended up selling it to upgrade to an 8.

Now seeing rumors that next year's iPhones will have bezel-less LCD screens, making them much cheaper than the iPhone X.
http://www.businessinsider.com/appl...-8-will-have-nearly-bezel-less-front-panels-1

Did I upgrade too early? I certainly would want a bigger screen than the iPhone 8. (I first bought an 8+ but returned it because I couldn't handle the larger size and weight.) How much should I be able to sell a 1-year old iPhone 8 for? It is worth keeping it for only one year?

I'm certainly the type of person that keeps my iPhones for 2-3 years, but I may only keep my fully paid, unlocked iPhone 8 for one year if the 2018 iPhones end up being as intriguing as the early rumors indicate.

Would love to hear people's thoughts.

 

[xsimplyjosh]

Had an iPhone 6 since 2015 launch. Had to get it replaced with another iPhone 6 last year from apple, for $99 as the battery on my original one was toast. My battery capacity on my year-old iPhone 6 was down to 90% when I ended up selling it to upgrade to an 8.

Now seeing rumors that next year's iPhones will have bezel-less LCD screens, making them much cheaper than the iPhone X.
http://www.businessinsider.com/appl...-8-will-have-nearly-bezel-less-front-panels-1

Did I upgrade too early? I certainly would want a bigger screen than the iPhone 8. (I first bought an 8+ but returned it because I couldn't handle the larger size and weight.) How much should I be able to sell a 1-year old iPhone 8 for? It is worth keeping it for only one year?

I'm certainly the type of person that keeps my iPhones for 2-3 years, but I may only keep my fully paid, unlocked iPhone 8 for one year if the 2018 iPhones end up being as intriguing as the early rumors indicate.

Would love to hear people's thoughts.

You have to decide does the features it offer over the iPhone 8 apart from design are worth the tradeoffs of a year lifespan... Again rumors are rumors... take them with a grain of salt lol. I mean we are just talking about iPhone X let alone 9 already.

 

[Jabar18]

You have to decide does the features it offer over the iPhone 8 apart from design are worth the tradeoffs of a year lifespan... Again rumors are rumors... take them with a grain of salt lol. I mean we are just talking about iPhone X let alone 9 already.

I think if I'm talking about from a $ standpoint, it makes sense. I got $175 for my iPhone 6. Paid $699 for an iPhone 8. That's a net loss of $525. I should be able to get at LEAST $400 by selling a 1-year old iPhone 8 next year if I end up wanting to upgrade to a 2018 iPhone. Therefore in essence I'd get a year's worth of the iPhone 8 for $150, or around $12.50/mo. (Which, might I add is FAR less than the approximately WHOPPING $300 that I would be paying Apple for a year's worth of the iPhone 8 - $39.50/mo x 12 months - $175) Plus then I'm still locked in to purchasing another iPhone through Apple's upgrade program, and around the Hamster wheel we go.

Now from a features standpoint, if the design of the 2018 iPhones look ANYTHING like the iPhone X and don't add too much weight or size to the "regular sized" iPhone form factor, I'm DEFINITELY upgrading.

If anything, this only reinforces for me the absolute necessity of ALWAYS buying a Sim-Free unlocked phone, even if you pay full price upfront. That way, the phone is YOURS, you're not tied to Apple or another financing plan, and get sell it whenever you want if you feel that something better arrives in another year or two.

 

[Givmeabrek]

Therefore in essence I'd get a year's worth of the iPhone 8 for $125, or around $12.50/mo.

There are 12 months in a year. Just saying....

 

[Jabar18]

There are 12 months in a year. Just saying....

Whoops, Fuzzy Math. Fixed.

 

[Knowimagination]

I think if I'm talking about from a $ standpoint, it makes sense. I got $175 for my iPhone 6. Paid $699 for an iPhone 8. That's a net loss of $525. I should be able to get at LEAST $400 by selling a 1-year old iPhone 8 next year if I end up wanting to upgrade to a 2018 iPhone. Therefore in essence I'd get a year's worth of the iPhone 8 for $150, or around $12.50/mo. (Which, might I add is FAR less than the approximately WHOPPING $300 that I would be paying Apple for a year's worth of the iPhone 8 - $39.50/mo x 12 months - $175) Plus then I'm still locked in to purchasing another iPhone through Apple's upgrade program, and around the Hamster wheel we go.

Now from a features standpoint, if the design of the 2018 iPhones look ANYTHING like the iPhone X and don't add too much weight or size to the "regular sized" iPhone form factor, I'm DEFINITELY upgrading.

If anything, this only reinforces for me the absolute necessity of ALWAYS buying a Sim-Free unlocked phone, even if you pay full price upfront. That way, the phone is YOURS, you're not tied to Apple or another financing plan, and get sell it whenever you want if you feel that something better arrives in another year or two.

Or you know you could just put it on the monthly payments and then if you decide you want to sell it you just pay it off and sell it.

I really don't understand why people are always trying to make IUP look like a bad deal. If you want applecare anyway for most people it is a perfectly good deal.

 

[johnny hotsauce]

Plus then I'm still locked in to purchasing another iPhone through Apple's upgrade program, and around the Hamster wheel we go.

Or you know you could just put it on the monthly payments and then if you decide you want to sell it you just pay it off and sell it.

I really don't understand why people are always trying to make IUP look like a bad deal. If you want applecare anyway for most people it is a perfectly good deal.

You're also not locked into turning the phone in every year to get a new one unless you want to. If you decide to keep your phone, just continue the remaining 12 payments for year 2 and the phone is yours after your last payment. I like having the option to either get a new phone every year or just pay it off if I want to keep it. There's really no hamster wheel unless you decide to turn in the phone every year for a new one.

 

[xxray]

Or you know you could just put it on the monthly payments and then if you decide you want to sell it you just pay it off and sell it.

I really don't understand why people are always trying to make IUP look like a bad deal. If you want applecare anyway for most people it is a perfectly good deal.

IUP costs quite a bit more money than selling the phone each year.

Current average selling price for a base iPhone 7 on Swappa: $449
Original base iPhone 7 price: $650
Cost for 1 year of ownership: $201

Base iPhone 8 monthly cost (IUP): $34.50
Cost for 1 year of ownership: $414

 

[Jabar18]

Or you know you could just put it on the monthly payments and then if you decide you want to sell it you just pay it off and sell it.

I really don't understand why people are always trying to make IUP look like a bad deal. If you want applecare anyway for most people it is a perfectly good deal.

because you're paying FAR more over the life of the phone. What you can sell an iPhone 8 for privately at the one year or two year mark nets you a much greater return than if you're utilizing apple's payment plan.

 

[Knowimagination]

because you're paying FAR more over the life of the phone. What you can sell an iPhone 8 for privately at the one year or two year mark nets you a much greater return than if you're utilizing apple's payment plan.

You are paying 699 plus apple care for the phone either way, there is literally no difference if you are already planning on purchasing apple care.

 

[Jabar18]

You are paying 699 plus apple care for the phone either way, there is literally no difference if you are already planning on purchasing apple care.

That's patently not true, at all. As I and others have detailed, you end up paying more for a year, or two years of the IUP than what you can do when you pay full price for an iPhone and then sell it on the open market/trade it in later at the one or two year mark.

The #s don't lie.

 

[Knowimagination]

IUP costs quite a bit more money than selling the phone each year.

Current average selling price for a base iPhone 7 on Swappa: $449
Original base iPhone 7 price: $650
Cost for 1 year of ownership: $201

Base iPhone 8 monthly cost (IUP): $34.50
Cost for 1 year of ownership: $414

You are paying the same price for the phone either way.

If it makes more financial sense for you to pay off and sell there is nothing stopping you from doing that on IUP. The last couple years dealing with buyers on the used market I would much rather lose a little money and trade it in after a year than have to deal with the hastle of selling, but lets not pretend like the phone costs more.

 

[Jabar18]

You are paying the same price for the phone either way.

If it makes more financial sense for you to pay off and sell there is nothing stopping you from doing that on IUP. The last couple years dealing with buyers on the used market I would much rather lose a little money and trade it in after a year than have to deal with the hastle of selling, but lets not pretend like the phone costs more.

Yet you recoup more money to use towards your next new iPhone/smartphone when you buy outright and pay the full price upfront. Not sure why you can't see that.

 

[Knowimagination]

That's patently not true, at all. As I and others have detailed, you end up paying more for a year, or two years of the IUP than what you can do when you pay full price for an iPhone and then sell it on the open market/trade it in later at the one or two year mark.

The #s don't lie.

Are you being obtuse intentionally? Either way you pay the full price of 699 for the phone that's literally what I said. I'm not talking about cost of ownership over a year. you can do anything you want with the phone when it is time to purchase the next year model on the IUP from trading it in to paying off the remaining balance and selling.

 

[Jabar18]

Are you being obtuse intentionally? Either way you pay the full price of 699 for the phone that's literally what I said. I'm not talking about cost of ownership over a year. you can do anything you want with the phone when it is time to purchase the next year model on the IUP from trading it in to paying off the remaining balance and selling.

Within the original context of the post I started this thread with, you're the one who's being obtuse.

I'm literally looking at the "cost of ownership for an iPhone 8 for a year" for someone like me who might want the option of getting a 2018 model iPhone. It makes more sense for me to pay off the phone fully so my yearly "cost" of using the iPhone 8 isn't as high as it would be if I used the IUP.

Stop trying to hijack the thread.

 

[Knowimagination]

You are paying 699 plus apple care for the phone either way, there is literally no difference if you are already planning on purchasing apple care.

That's patently not true, at all. As I and others have detailed, you end up paying more for a year, or two years of the IUP than what you can do when you pay full price for an iPhone and then sell it on the open market/trade it in later at the one or two year mark.

The #s don't lie.

lol ok I laid out clearly that I was talking about the 699 price. It's not my fault you don't understand how the IUP works.

I think if I'm talking about from a $ standpoint, it makes sense. I got $175 for my iPhone 6. Paid $699 for an iPhone 8. That's a net loss of $525. I should be able to get at LEAST $400 by selling a 1-year old iPhone 8 next year if I end up wanting to upgrade to a 2018 iPhone. Therefore in essence I'd get a year's worth of the iPhone 8 for $150, or around $12.50/mo. (Which, might I add is FAR less than the approximately WHOPPING $300 that I would be paying Apple for a year's worth of the iPhone 8 - $39.50/mo x 12 months - $175) Plus then I'm still locked in to purchasing another iPhone through Apple's upgrade program, and around the Hamster wheel we go.

Now from a features standpoint, if the design of the 2018 iPhones look ANYTHING like the iPhone X and don't add too much weight or size to the "regular sized" iPhone form factor, I'm DEFINITELY upgrading.

If anything, this only reinforces for me the absolute necessity of ALWAYS buying a Sim-Free unlocked phone, even if you pay full price upfront. That way, the phone is YOURS, you're not tied to Apple or another financing plan, and get sell it whenever you want if you feel that something better arrives in another year or two.

Also it can hardly be considered thread jacking when you are the one who brought all this crap up.

 

[Jabar18]

lol ok I laid out clearly that I was talking about the 699 price. It's not my fault you don't understand how the IUP works.




Also it can hardly be considered thread jacking when you are the one who brought all this crap up.

And it's not my fault that you're not competent enough to understand that I'm primarily concerned with the "cost of ownership for me for an iPhone 8 over the next year."

Which as I and others have pointed out, does not benefit me as much if I use the IUP instead of paying for the phone outright. Not everyone wants to be forced to finance a phone with AppleCare included.

 

[Knowimagination]

And it's not my fault that you're not competent enough to understand that I'm primarily concerned with the "cost of ownership for me for an iPhone 8 over the next year."

Which as I and others have pointed out, does not benefit me as much if I use the IUP instead of paying for the phone outright. Not everyone wants to be forced to finance a phone with AppleCare included.

lol ok. I literally just pointed out that for people who were already planning on purchasing apple care its no different.

The whole point and benefit of IUP over outright purchase is that for me for the X rather than laying out my 1000 all at once I can break it into monthly payments until I decide if it is better for me to sell it after purchasing or to just trade it in when I am ready to upgrade. For people who don't purchase apple care then sure you save a bit more money by buying outright, but I'm just sick of people trying to make IUP out to be some horrible option for consumers it's ignorant.

 

[timeconsumer]

lol ok. I literally just pointed out that for people who were already planning on purchasing apple care its no different.

The whole point and benefit of IUP over outright purchase is that for me for the X rather than laying out my 1000 all at once I can break it into monthly payments until I decide if it is better for me to sell it after purchasing or to just trade it in when I am ready to upgrade. For people who don't purchase apple care then sure you save a bit more money by buying outright, but I'm just sick of people trying to make IUP out to be some horrible option for consumers it's ignorant.

IUP is a no interest payment plan that includes AppleCare. I think the OP doesn’t want to be required to pay for AppleCare if he/she is only keeping the phone for a year. It’s $129 extra due to AppleCare, therefore the yearly cost of ownership would be higher since in order to sell at the yearly mark the OP would need to pay $699+$129 instead of $699 only.

Also, another thing to point out with the Apple iPhone Upgrade Program (IUP) is that it requires a hard credit pull which will stay on your credit report for two years. I don’t believe getting a hard pull is worth it for a phone.

 

[Jabar18]

http://mashable.com/2017/09/11/apple-iphone-upgrade-program-not-worth-it/#HRwyCuYnomqy

lol ok. I literally just pointed out that for people who were already planning on purchasing apple care its no different.

The whole point and benefit of IUP over outright purchase is that for me for the X rather than laying out my 1000 all at once I can break it into monthly payments until I decide if it is better for me to sell it after purchasing or to just trade it in when I am ready to upgrade. For people who don't purchase apple care then sure you save a bit more money by buying outright, but I'm just sick of people trying to make IUP out to be some horrible option for consumers it's ignorant.

It actually is a horrible option for consumers, as detailed below.

http://mashable.com/2017/09/11/apple-iphone-upgrade-program-not-worth-it/#HRwyCuYnomqy

The "iPhone X" is rumored to cost as much as $1,200, a painful sum that will look much more reasonable sliced into 24 gobs. But the Upgrade Program sets a bad precedent. You don't have to complete your loan to get a new iPhone every year: You just need to pay off 12 portions, and then you're eligible for an upgrade. Trading in your iPhone for a new one triggers the plan all over again, putting you on a hamster wheel of endless upgrades and cash paid to Apple.

If you don't upgrade every year and choose instead to pay off and own your iPhone after two years, you're left with a less valuable, outdated device. And if you do upgrade, the single benefit is dodging a one-time payment of around $1,000: not a minor thing, but a questionable one all the same. Every benefit is reserved for Apple. Namely:

• The iPhone Upgrade Program keeps you locked into Apple's ecosystem. If you can upgrade to a new iPhone every year, with no obvious downside, why wouldn't you? Thus, you will always be inclined to purchase a new iPhone when the time comes to replace your device, rather than buying a phone from a competitor.
  
  
• It forces you to buy AppleCare+. Not a major expense in the grand scheme of things, but an otherwise avoidable one all the same.
  
  
• You'll keep buying new iPhones. Great for Apple's bottom line! Who would say no to a new iPhone every year if the asking price doesn't appreciably increase? The difference in monthly payments between a $969 iPhone 7 Plus and a $1,200 iPhone X would be less than $10, which might be easier to swallow than $231 all at once.
  
  
• Apple gets your old iPhone, which it can refurbish, and re-sell. Maybe it's not fair to call this "greedy," exactly. Although, screw it, it's greedy: When you turn your iPhone back in after 12 months, Apple can turn around and sell it for something close to full price (typically, they're sold for 15 percent off), which means you've essentially paid for a year-long iPhone rental.
  
  
• It helps Apple control, and drive up, the base price for the iPhone. The average price paid for iPhones has increased over the past couple of years, as noted by Quartz reporter Mike Murphy in this graph:

All of the points outlined in this article are more reasons why the IUP is in-fact, not a great option for consumers, but agree to disagree.

 

[Jabar18]

IUP is a no interest payment plan that includes AppleCare. I think the OP doesn’t want to be required to pay for AppleCare if he/she is only keeping the phone for a year. It’s $129 extra due to AppleCare, therefore the yearly cost of ownership would be higher since in order to sell at the yearly mark the OP would need to pay $699+$129 instead of $699 only.

Also, another thing to point out with the Apple iPhone Upgrade Program (IUP) is that it requires a hard credit pull which will stay on your credit report for two years. I don’t believe getting a hard pull is worth it for a phone.

Bingo. Someone who gets it. Thank you.

 

[Knowimagination]

http://mashable.com/2017/09/11/apple-iphone-upgrade-program-not-worth-it/#HRwyCuYnomqy


It actually is a horrible option for consumers, as detailed below.

http://mashable.com/2017/09/11/apple-iphone-upgrade-program-not-worth-it/#HRwyCuYnomqy

The "iPhone X" is rumored to cost as much as $1,200, a painful sum that will look much more reasonable sliced into 24 gobs. But the Upgrade Program sets a bad precedent. You don't have to complete your loan to get a new iPhone every year: You just need to pay off 12 portions, and then you're eligible for an upgrade. Trading in your iPhone for a new one triggers the plan all over again, putting you on a hamster wheel of endless upgrades and cash paid to Apple.

If you don't upgrade every year and choose instead to pay off and own your iPhone after two years, you're left with a less valuable, outdated device. And if you do upgrade, the single benefit is dodging a one-time payment of around $1,000: not a minor thing, but a questionable one all the same. Every benefit is reserved for Apple. Namely:

• The iPhone Upgrade Program keeps you locked into Apple's ecosystem. If you can upgrade to a new iPhone every year, with no obvious downside, why wouldn't you? Thus, you will always be inclined to purchase a new iPhone when the time comes to replace your device, rather than buying a phone from a competitor.
  
  
• It forces you to buy AppleCare+. Not a major expense in the grand scheme of things, but an otherwise avoidable one all the same.
  
  
• You'll keep buying new iPhones. Great for Apple's bottom line! Who would say no to a new iPhone every year if the asking price doesn't appreciably increase? The difference in monthly payments between a $969 iPhone 7 Plus and a $1,200 iPhone X would be less than $10, which might be easier to swallow than $231 all at once.
  
  
• Apple gets your old iPhone, which it can refurbish, and re-sell. Maybe it's not fair to call this "greedy," exactly. Although, screw it, it's greedy: When you turn your iPhone back in after 12 months, Apple can turn around and sell it for something close to full price (typically, they're sold for 15 percent off), which means you've essentially paid for a year-long iPhone rental.
  
  
• It helps Apple control, and drive up, the base price for the iPhone. The average price paid for iPhones has increased over the past couple of years, as noted by Quartz reporter Mike Murphy in this graph:

All of the points outlined in this article are more reasons why the IUP is in-fact, not a great option for consumers, but agree to disagree.

I’m totally cool with agreeing to disagree but you and I both know that this article is trash. I’m not arguing for every person using IUP I’m just sick of seeing people trash it like it isn’t the same as buying a phone and AppleCare outright when it is.

 

[bufffilm]

What's done is done.

How about just waiting to see what Apple unveils next year and then you can take it from there.

 

[nilk]

http://mashable.com/2017/09/11/apple-iphone-upgrade-program-not-worth-it/#HRwyCuYnomqy


It actually is a horrible option for consumers, as detailed below.

http://mashable.com/2017/09/11/apple-iphone-upgrade-program-not-worth-it/#HRwyCuYnomqy

The "iPhone X" is rumored to cost as much as $1,200, a painful sum that will look much more reasonable sliced into 24 gobs. But the Upgrade Program sets a bad precedent. You don't have to complete your loan to get a new iPhone every year: You just need to pay off 12 portions, and then you're eligible for an upgrade. Trading in your iPhone for a new one triggers the plan all over again, putting you on a hamster wheel of endless upgrades and cash paid to Apple.

If you don't upgrade every year and choose instead to pay off and own your iPhone after two years, you're left with a less valuable, outdated device. And if you do upgrade, the single benefit is dodging a one-time payment of around $1,000: not a minor thing, but a questionable one all the same. Every benefit is reserved for Apple. Namely:

• The iPhone Upgrade Program keeps you locked into Apple's ecosystem. If you can upgrade to a new iPhone every year, with no obvious downside, why wouldn't you? Thus, you will always be inclined to purchase a new iPhone when the time comes to replace your device, rather than buying a phone from a competitor.
  
  
• It forces you to buy AppleCare+. Not a major expense in the grand scheme of things, but an otherwise avoidable one all the same.
  
  
• You'll keep buying new iPhones. Great for Apple's bottom line! Who would say no to a new iPhone every year if the asking price doesn't appreciably increase? The difference in monthly payments between a $969 iPhone 7 Plus and a $1,200 iPhone X would be less than $10, which might be easier to swallow than $231 all at once.
  
  
• Apple gets your old iPhone, which it can refurbish, and re-sell. Maybe it's not fair to call this "greedy," exactly. Although, screw it, it's greedy: When you turn your iPhone back in after 12 months, Apple can turn around and sell it for something close to full price (typically, they're sold for 15 percent off), which means you've essentially paid for a year-long iPhone rental.
  
  
• It helps Apple control, and drive up, the base price for the iPhone. The average price paid for iPhones has increased over the past couple of years, as noted by Quartz reporter Mike Murphy in this graph:

All of the points outlined in this article are more reasons why the IUP is in-fact, not a great option for consumers, but agree to disagree.

Some good points, but IUP is not bad for everyone. IUP is good in this situation:

* You're going to get AppleCare+ anyway
* You can easily afford to buy the phone full price if you wanted to
* You have your own free will to choose when and what to buy

In this situation (where you have enough cash to buy the phone outright), you can pay off IUP any time you want, so that you can sell the phone or whatever.

In my case I bought a 128GB 6S using IUP, decided I didn't want the 7 when upgrade time came along (wanted headphone jack a little longer), and ended up paying off the phone after 2 years. This fall I bought a used 7 and handed off the 6S to my wife after getting it's battery replaced for free, which would've been covered under AC+ because it was below 80% life, but I did it via the battery recall. The 6S still runs fine, despite being less valuable for resale. At any point during IUP I could've paid it off and bought an Android phone and sold the iPhone or whatever if I wanted to. But I got to keep my cash longer with no downside (hard credit pull has negligible impact on me).

I get what you're saying, and Apple being able to drive up the price is a real concern, but IUP isn't universally bad for anyone.

That said, I wouldn't pay $500 for horrible design like the iPhone X, let alone $1000 or more. If this is the future of the iPhone, I'm going to be looking at alternatives.
[doublepost=1507834164][/doublepost]

Did I upgrade too early? I certainly would want a bigger screen than the iPhone 8. (I first bought an 8+ but returned it because I couldn't handle the larger size and weight.) How much should I be able to sell a 1-year old iPhone 8 for? It is worth keeping it for only one year?

I'm certainly the type of person that keeps my iPhones for 2-3 years, but I may only keep my fully paid, unlocked iPhone 8 for one year if the 2018 iPhones end up being as intriguing as the early rumors indicate.

Would love to hear people's thoughts.

I think you made the right choice and should just enjoy your iPhone 8. You want a bigger screen, but the 8+ is too large so it's a non-starter. The iPhone X's screen is not wider, it's only taller, and has some questionable design decisions. I wouldn't want to be an early adopter in this case (or an adopter at all). If all of next years iPhones are going to have the notch and they can't fix their software choices by then, the 8 might continue to be the best iPhone into 2019.

If you do want to sell your iPhone 8, you'll probably recover a decent chunk of your money back.

My wife had an iPhone 6 whose battery was done, but decided to upgrade her to a 6S because performance of the 6 has always been terrible and it's not worth spending money on. I think you made the right call on getting off of the 6 instead of spending $100 on it.

 

[timeconsumer]

http://mashable.com/2017/09/11/apple-iphone-upgrade-program-not-worth-it/#HRwyCuYnomqy


It actually is a horrible option for consumers, as detailed below.

http://mashable.com/2017/09/11/apple-iphone-upgrade-program-not-worth-it/#HRwyCuYnomqy

The "iPhone X" is rumored to cost as much as $1,200, a painful sum that will look much more reasonable sliced into 24 gobs. But the Upgrade Program sets a bad precedent. You don't have to complete your loan to get a new iPhone every year: You just need to pay off 12 portions, and then you're eligible for an upgrade. Trading in your iPhone for a new one triggers the plan all over again, putting you on a hamster wheel of endless upgrades and cash paid to Apple.

If you don't upgrade every year and choose instead to pay off and own your iPhone after two years, you're left with a less valuable, outdated device. And if you do upgrade, the single benefit is dodging a one-time payment of around $1,000: not a minor thing, but a questionable one all the same. Every benefit is reserved for Apple. Namely:

• The iPhone Upgrade Program keeps you locked into Apple's ecosystem. If you can upgrade to a new iPhone every year, with no obvious downside, why wouldn't you? Thus, you will always be inclined to purchase a new iPhone when the time comes to replace your device, rather than buying a phone from a competitor.
  
  
• It forces you to buy AppleCare+. Not a major expense in the grand scheme of things, but an otherwise avoidable one all the same.
  
  
• You'll keep buying new iPhones. Great for Apple's bottom line! Who would say no to a new iPhone every year if the asking price doesn't appreciably increase? The difference in monthly payments between a $969 iPhone 7 Plus and a $1,200 iPhone X would be less than $10, which might be easier to swallow than $231 all at once.
  
  
• Apple gets your old iPhone, which it can refurbish, and re-sell. Maybe it's not fair to call this "greedy," exactly. Although, screw it, it's greedy: When you turn your iPhone back in after 12 months, Apple can turn around and sell it for something close to full price (typically, they're sold for 15 percent off), which means you've essentially paid for a year-long iPhone rental.
  
  
• It helps Apple control, and drive up, the base price for the iPhone. The average price paid for iPhones has increased over the past couple of years, as noted by Quartz reporter Mike Murphy in this graph:

All of the points outlined in this article are more reasons why the IUP is in-fact, not a great option for consumers, but agree to disagree.

It is a rental of the device if you turn it back in. However, if you purchase it full price + AppleCare and keep it for the full 2 years, it's no different than buying outright in terms of cost. But if you want to upgrade every year, it's just a rental and it benefits Apple for sure. Apple wouldn't offer it if it didn't benefit them more than the customers as that's how businesses work.

The biggest benefit to me with the Apple IUP is that you don't get locked into a greedy carrier contract/agreement that they like to give by giving monthly credits, so you can move around to different carriers if you don't like the one you're currently on. Now, if you find a carrier you like and plan to stick with, then take those monthly credits and it's much cheaper to own an iPhone.