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iPhone Upgrade Program Causing Headaches for Some Launch Day Customers

shanmugam said:
Just the verizon iPhone, which has all the BANDS including CDMA (so it can work on any carrier and prepaid plans as well).
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This pricing is confusing, and it seems the apple upgrade program is significantly more expensive than a 2yr contract. For example, the cheapest apple upgrade program is $32.41/mo. That's $388.92 after 12 months. Afterwards, you have to give the phone back. Previously, with a 2yr contract, you paid $199 up front. After two years, you can even trade it in for credit, say $100. So after 2 years, you paid $99 ($199-$100).

The argument can be, fine, you're not locked into a contract. Ok, i can see that. So using the logic above, by avoiding the contract and choosing Apple's upgrade program, you end up paying $289.92 ($388.92-$99) extra to avoid an additional 12 months contract.

In other words, by doing the apple upgrade program, your paying $24.16/mo ($289.92 / 12) for the ability to upgrade every year versus every two years, and you get apple care included.

Am I missing something? IMO, not worth it.
 
gijoeinla said:
Not my experience at all. In fact I purchased THREE NEW iPHONES via Apple's new program and all went super super smooth. The contracts say that they (the card you used to secure the "loan") will charge the tax and first payment in 3 days.

Even one of my older iPhone 6+ was on a Next plan contract with At&t... I can either turn in that phone, pay it off and keep it or sell it. This Apple Plan is totally separate for those wondering.

I'm actually THRILLED that I am CONTRACT FREE from the grip of At&t!!!!!!!!!!!!!!!!! Yahhhhhhhhooooooooooooeeeeee!!!

I will say WITHOUT A DOUBT this is BY FAR for ME the best and most easiest iPhone on-sale experience I have EVER had to date. HUGE IMPROVEMENT over last years nightmare. HUGE!

Thank you Apple!!!

This rocks!!
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Exact same experience here. Walked in and got three phones under the program. Monthly payment with zero interest? Shut up and take my money... slowly.
 
WowAppleWow said:
It is a proven fact that you will spend more when using a credit card vs. cash. The extra you spend could be invested and earn more than your credit card points....
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Dude, I think you should probably give it a rest. This forum is loaded with plenty of well healed individuals who really don't need your advice; not to mention your advice is not even financially sound. Just because SOMEONE may spend more money when using a credit card, doesn't mean EVERYONE does.
 
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It was honestly a pretty simple and easy process, I mean it could've been a shorter process, however still not bad. I'm 19 years old and I got approved..
 
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Got my iPhone 6S yesterday in South Windsor, CT via the iPhone Upgrade Program (IUP). Overall checkout process was smooth with no hitches. Slight issue setting up with beta. Here's what I have to say about it.

1. There was an option to pay off the phone in 24 installment payments without AppleCare+ in addition to the IUP.

2. Since my 2-yr contract on the iPhone 5S wasn't over until Oct. 17th, the $25 discount I got from AT&T despite my 5S on contract went away and I'll have to pay $40 (possibly prorated at this point) until Oct. 17.

3. There is no upgrade fee from AT&T and it is clearly shown during on the EasyPay phone.

4. No SIM swap required. And activation was completed through the EasyPay phone without the 6S being opened.

5. Convenient desk near the Genius Bar to set up or migrate to the new 6S. If you have beta and want to set up the 6S in store, you can either (a) downgrade from beta, back it up, and restore without a Mac needed or (b) back up the beta on to a Macbook, bring your Macbook and restore it once the 6S has beta installed.
 
dimabear said:
This pricing is confusing, and it seems the apple upgrade program is significantly more expensive than a 2yr contract. For example, the cheapest apple upgrade program is $32.41/mo. That's $388.92 after 12 months. Afterwards, you have to give the phone back. Previously, with a 2yr contract, you paid $199 up front. After two years, you can even trade it in for credit, say $100. So after 2 years, you paid $99 ($199-$100).

The argument can be, fine, you're not locked into a contract. Ok, i can see that. So using the logic above, by avoiding the contract and choosing Apple's upgrade program, you end up paying $289.92 ($388.92-$99) extra to avoid an additional 12 months contract.

In other words, by doing the apple upgrade program, your paying $24.16/mo ($289.92 / 12) for the ability to upgrade every year versus every two years, and you get apple care included.

Am I missing something? IMO, not worth it.
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All depends on how many lines you have, how much data you use and what plan you are in and with whom (and coverage in your area and your travel needs).

do some math, you will find what you need; one size does not fit all.
 
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I had an issue signing up for the upgrade plan with excellent credit, I was denied and had to buy the phone out right. I called Citizens One later and they told me that you must link to a "Major Credit Card" I had to inquire as to how my Chase Visa could not be considered a "Major Credit Card" apparently if the card is issued by a bank it does not qualify. You would think the apple sales personnel would know of this issue. Second note credit karma is reporting the credit pull as a hard credit inquiry.
 
Scott38660 said:
I had a really frustrating experience at the Apple Store last night too. Even though I have a credit limit of $5600 and a credit score of 730, my credit check failed with two cards... I wonder if it's possible to go back and return this phone, then buy one with the upgrade program. Any thoughts?
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730 I not high. How much of that $5600 is free. How many cards do you have. How much of their limits are used up. No one ever provides enough information in these posts.
 
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CJarr said:
I had an issue signing up for the upgrade plan with excellent credit, I was denied and had to buy the phone out right. I called Citizens One later and they told me that you must link to a "Major Credit Card" I had to inquire as to how my Chase Visa could not be considered a "Major Credit Card" apparently if the card is issued by a bank it does not qualify. You would think the apple sales personnel would know of this issue. Second note credit karma is reporting the credit pull as a hard credit inquiry.
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You mean you don't know the difference between a debit and credit card?
 
brinary001 said:
Yup. A couple of nice-to-have features and gimmick thrown in as per usual with an s device. Nothing that makes every single iPhone owner run out and wait in line. The fact that it'll be fully stocked in a couple weeks in all stores will prove this.
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You're right I did not run out and wait in line, I pre-ordered on-line. The phone was delivered directly to my door.
 
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DotCom2 said:
Here is what has me a bit concerned about the Apple Upgrade program, and if anybody know the answer to this, I would greatly appreciate it.

I've read the terms and conditions http://www.apple.com/legal/sales-support/iphoneupgrade_us/ and it seems quite understandable until you get to the part about trading in your old phone. It says you have the "OPTION" to turn in you phone after 12 months and get a new phone and start the plan all over again. OKAY, fine.

But what if you DON'T want to turn in your phone at the 12 months and instead just want to wait out the next 12 months and eventually pay off your phone and keep it.
It doesn't say anything about being able to just keep your phone after the term is up.
In fact, at one point it even says "you must" turn in your old phone!

I know on the ATT NEXT plan, it clearly states that at the end of your term you can do nothing and keep your old phone, and at any time pay off your remaining balance and keep your phone. Why doesn't it say that on the Apple contract terms?
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Contact Apple and get clarification, that is what I would do.
 
mdlooker said:
If you get a phone on the plans, such as this, you're paying at a rate of 1/2 the price of the phone in 1 year. You have two options at that point:

1) Turn the phone in for a new upgraded phone and start over paying for that new phone at the same rate or..

2) Keep the phone and at the end of 2 years, you would have paid full retail price of the phone.

If you get the phone on a 2year subsidized, you're paying half the retail price and just paying your monthly bill. The monthly bill shouldn't change because the plan prices are set regardless of the smart phone you bring in.

That's how my plan works anyway. Maybe there are different scenarios for other plans.
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The two year subsidized plan on Verizon is $25 more per month than a plan with no subsidized price. That's what I just told you in my last post. Carriers always built the price of the phone into the subsidized price, and they never took that extra charge off when your contract was up. Now that TMO has turned the US mobile industry on its head carriers like Verizon are allowing you to reduce your bill when your phone goes off contract. My iPhone went off contract yesterday, so I called Verizon and told them to give me the month to month discount, which dropped my bill $25 per month. Same is true with my girlfriend's phone. We put her on a Next plan a few months ago. We're paying $31 a month for the phone, but they dropped our monthly access on the line by $25. Once her phone is line access will still be $25 cheaper, but the $31 will no longer be charged.

So, in reality you're paying more for a subsidized phone. Because a 64GB subsidized phone costs $299, and the extra $25 per month you're paying totals $600. So, over two years you're paying $899 for a phone you could have bought for $749, or used interest free carrier financing, or the Apple Upgrade program, which is interest free as well to get the phone for the same price as cash paid out over two years.

Subsidized plans are actually for suckers these days, to tell the truth.
 
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PNutts said:
I was in the store for about 11 minutes (had reservation).
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My genius rep didn't know the process really, however I was her first customer doing the upgrade program. When it asked for my password on my AT&T account, she didn't know if that was asking for my password or passcode (it ended up being the passcode, I believe). It still ended up not going through from there, because she had asked me to enter the last 4 of my SSN, but it was the primary account last 4 it was asking for.

So it kinda seemed liked a trial and error going through some of those steps.^ Also she didn't know if was going to be a soft or hard pull on my credit (it ended up being reported as a hard pull).
 
rdlink said:
My iPhone went off contract yesterday, so I called Verizon and told them to give me the month to month discount, which dropped my bill $25 per month. Same is true with my girlfriend's phone. We put her on a Next plan a few months ago. We're paying $31 a month for the phone, but they dropped our monthly access on the line by $25. Once her phone is line access will still be $25 cheaper, but the $31 will no longer be charged.

So, in reality you're paying more for a subsidized phone. Because a 64GB subsidized phone costs $299, and the extra $25 per month you're paying totals $600. So, over two years you're paying $899 for a phone you could have bought for $749, or used interest free carrier financing, or the Apple Upgrade program, which is interest free as well to get the phone for the same price as cash paid out over two years.

Subsidized plans are actually for suckers these days, to tell the truth.
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Cute! lol. I'm glad it's working for you as Verizon is hooking you two up.

But this sucka is staying on a subsidized plan because I pay no more than that...ever.
 

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rdlink said:
Well, this sucka is paying $139 for two iPhones and an iPad. And once the second iPhone is paid off it'll be around $107.
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Yea it seems to be working for you but I don't think, from what I'm reading around this thread, that others are as fortunate. Once I sell my older version phone, I end up paying $80 out of pocket because of those crazy taxes that uncle sam demands.
 
pcmike said:
Dude, I think you should probably give it a rest. This forum is loaded with plenty of well healed individuals who really don't need your advice; not to mention your advice is not even financially sound. Just because SOMEONE may spend more money when using a credit card, doesn't mean EVERYONE does.
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Dude, that was so yesterday. I gave up trying to be logical with anyone here. lol
 
dimabear said:
This pricing is confusing, and it seems the apple upgrade program is significantly more expensive than a 2yr contract. For example, the cheapest apple upgrade program is $32.41/mo. That's $388.92 after 12 months. Afterwards, you have to give the phone back. Previously, with a 2yr contract, you paid $199 up front. After two years, you can even trade it in for credit, say $100. So after 2 years, you paid $99 ($199-$100).

The argument can be, fine, you're not locked into a contract. Ok, i can see that. So using the logic above, by avoiding the contract and choosing Apple's upgrade program, you end up paying $289.92 ($388.92-$99) extra to avoid an additional 12 months contract.

In other words, by doing the apple upgrade program, your paying $24.16/mo ($289.92 / 12) for the ability to upgrade every year versus every two years, and you get apple care included.

Am I missing something? IMO, not worth it.
Click to expand...
You're overlooking the fact that your carrier will drop your monthly cost by $25 if you 'bring your own device', so that's $600 over the 24 months you need to factor in...
 
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