iPhone 6s Apple Upgrade Program - whats wrong with my math?

[mcamm]

I am trying to compare the price of buying a full price 6s 64g + Apple Care+ compared to getting it via the upgrade program. I am not interested in upgrading after 12 months. I plan to keep it for the full 24 months.

My math is as follows:

Full price of iPhone 6s 64G is $749 - unlocked
Apple Care Plus $129
Total = $878

Compared to Apple Upgrade Program
iPhone 6s 64G is $36.58 * 24 = 877.92 - this price includes Apple Care Plus and is unlocked

So I calculate that the prices are the same. If I buy via the upgrade program then apple funds the purchase over 24 months. If I buy it outright then I have to come up with the cash.

Given that the $$ seem to be the same (please check my math and assumptions) what am I missing? The upgrade program seems like a better deal. Other than the step for credit check I don't see the downside. I am assuming that at the end of the 24 months on the upgrade program that I own the phone, correct?

Please let me know what I am missing or if my assumptions are correct?

Also, does anyone know if the 36.58 includes state tax (I am in MA) or is there tax on top of that amount?

Thanks!

 

[tgi]

Other than the step for credit check I don't see the downside.

The other downside is they are forcing you to get Apple Care+. If you always get Apple Care and want to pay for the phone monthly, then it seems like a decent deal.

If I didn't want Apple Care and can pay for the phone up front, would the Apple Upgrade Program be a good deal for me?

 

[unobtainium]

The other downside is that you need to go in to an Apple Store to complete your order, and afaik, you'll have to pick up your phone at the store as well. It's a bit of an added hassle.

 

[question fear]

Your math is correct. Apple's financing plan, much like the ones offered by the carriers, is a 24 month zero interest plan.

 

[CodeSpyder]

Cost wise, it's a wash. I am not sure that one can buy out of Apple's program.

 

[enthusiastic]

Cost wise, it's a wash. I am not sure that one can buy out of Apple's program.

This. If I can't pay off the phone and sell it after a year, it is not worth it.

 

[jhearty99]

This. If I can't pay off the phone and sell it after a year, it is not worth it.

Completely agree. I just tried to check the full terms, and they have not updated that page yet. If you cannot pay it off and are forced to turn it in, then not as good of a deal.

 

[wlossw]

do you have to return your old phone or keep it when you upgrade?

 

[CodeSpyder]

I was just told by an Apple Specialist that one can pay off the phone after 6 months in the program and own it outright.

 

[fanboi4lyfe]

Apple's program is the same as buying the phone outright with AC+. However, if you buy the phone outright with AC+ you lose a year of AC and then the next year when you want the new iPhone you have to pay for it outright again setting you back another $878 with AC+.

If you go through the plan you end up paying $438.96 for the first year and then are able to upgrade to the new phone with another 24-month lease and do it all over again.

Doing Apple's program is specifically designed for people who want the newest iPhone at the time it comes out without being locked down into a carrier contract, but you have to turn in the phone you have been using (iPhone 6S 64gb). If you want to own the phone outright and keep it for a couple years or have the option to sell it back, I probably wouldn't do this program.

*But if Apple is allowing you to buy the phone outright after 6 months then that kind of changes some things.*

 

[mcamm]

thanks!