iPhone Upgrade Program Causing Headaches for Some Launch Day Customers

[techwhiz]

I find it interesting that you need to bring your current iPhone. What if you have an Android phone?
On the web they don't state a current iPhone required.

I was thinking about switching and paying the first 12 months up front, knowing that at 13 months I'd either upgrade or pay it off and sell it.

 

[Taz Mangus]

The biggest incentive for me was the included Apple Care as part of the iPhone Upgrade program. Turns out, it is not included. They still charge you for it. The website is quite misleading! Here is the wording that confuses me:

With AppleCare+ included, you get up to two years of hardware repairs, software support, and coverage for up to two incidents of accidental damage (AppleCare+ for iPhone 6s and iPhone 6s Plus is $129 when sold separately).2 If you have questions about using your iPhone or just want to know how to set up email, we’re here to help.
​

Notice also the features advertised and no footnotes:

• Get a new iPhone every year
• Unlocked — choose your carrier
• Low monthly payments
• iPhone protection with AppleCare+

So as an example, the pricing for the iPhone 6s space gray with 128GB capacity then ends up being $849 + $129 (AppleCare+). + tax. Rather than just $849 being financed.


So to me this is very misleading and I'm not satisfied with the way the website
http://www.apple.com/shop/iphone/iphone-upgrade-program makes this out to be.

Is that what you were told when you went to purchase the phone? A 16GB iPhone 6S is $649, AppleCare+ is $129. $649+$129=$778. The upgrade program for the 16GB iPhone 6S is $32.41/month for 24 months which works out to be $777.84. Not sure about taxes though.

 

[bstpierre]

If they're both truly the same cost, then Next isn't as good of a deal since with the iPhone Upgrade Plan, you get AppleCare+.

Why do you need AppleCare if you are keeping the phone for 1 year
EDIT: I realize the 2 accidental damage events have value.

Ahh man, anyone remember and miss the days of walking in, paying $200 bucks and walking out with a phone? Yeah, they said customers don't want contracts, because they are difficult.

Right.

I'll take a 2 year contract over all this mess. It really makes me nervous when my contract is up for the iPhone 7. I'm not looking forward to that at all.

I wouldn't worry about your contract being up. I am still on my original contract over several phones and long after the 2 years were up.

 

[KPandian1]

... to upgrade after one year you hand your current phone back after half paying it off??!?? That doesn't sound like a good deal!

This program is great if you pay it off over two years without a carrier contract and get to keep the phone, but handing it back after you've half paid it off sounds like a rotten deal.

Am I reading this wrong?

You are on point - exactly! This is not a $45000+ auto that you lease every three years to stay current - it is a (expensive) performance phone. 24 months - lease or buy is same, as Apple Care covers the exact period.

Foolish to lease a $900 phone perpetually!

 

[dkdkdk]

Is that what you were told when you went to purchase the phone? A 16GB iPhone 6S is $649, AppleCare+ is $129. $649+$129=$778. The upgrade program for the 16GB iPhone 6S is $32.41/month for 24 months which works out to be $777.84. Not sure about taxes though.

Right, so really the only "deal" you're are potentially getting here is 0% APR. Otherwise there is no point to do the iPhone Upgrade program.

 

[dwsolberg]

The Apple program worked fine for me. I would have otherwise just bought the phone, but I really like the 12-month upgrade cycle: Just turn the "old" phone in next fall and get a new one. It's so much easier than selling it myself and spending all that time thinking about the best way to do things. Next fall, I'll walk in, get a new phone, then walk out. Nothing to think about.

Also, it's an immediately unlocked phone versus using a carrier plan, which makes travel less complicated.

 

[Taz Mangus]

Right, so really the only "deal" you're are potentially getting here is 0% APR. Otherwise there is no point to do the iPhone Upgrade program.

For those that don't want to front the whole amount it might be worth it for them. Or others who don't want to be tied to a 24 month contract. And then there are others who don't want to bother with reselling the phone.

 

[WowAppleWow]

The number one reason not to finance.... If the phone is lost or stolen you are still liable for the cost of the phone and the replacement cost of a new one. *If I understand the carriers position correctly.

 

[predation]

Pay your bills dead beat. lol

 

[coolerkid]

I got denied too. I have excellent credit and never get turned down for any kind of loan. They couldn't tell my at the store why I got denied.

 

[Rafagon]

Why are folks who have $4000 of available credit on a credit card dealing with this Apple Upgrade Program hassle? Why not buy the iPhone and put it on that already-established credit card, and go home happy with a new iPhone 6s or 6s Plus?

 

[Taz Mangus]

The number one reason not to finance.... If the phone is lost or stolen you are still liable for the cost of the phone and the replacement cost of a new one. *If I understand the carriers position correctly.

I think most homeowners policies cover lost ot stolen items. I would think the phone would be covered as well. Of course there is the deductible though.

 

[Gjwilly]

The biggest incentive for me was the included Apple Care as part of the iPhone Upgrade program. Turns out, it is not included. They still charge you for it. The website is quite misleading! Here is the wording that confuses me:

With AppleCare+ included, you get up to two years of hardware repairs, software support, and coverage for up to two incidents of accidental damage (AppleCare+ for iPhone 6s and iPhone 6s Plus is $129 when sold separately).2 If you have questions about using your iPhone or just want to know how to set up email, we’re here to help.
​

Notice also the features advertised and no footnotes:

• Get a new iPhone every year
• Unlocked — choose your carrier
• Low monthly payments
• iPhone protection with AppleCare+

So as an example, the pricing for the iPhone 6s space gray with 128GB capacity then ends up being $849 + $129 (AppleCare+). + tax. Rather than just $849 being financed.


So to me this is very misleading and I'm not satisfied with the way the website
http://www.apple.com/shop/iphone/iphone-upgrade-program makes this out to be.

Edit: I should be more clear the $40.75 monthly payment (23 month) is accurate, what they don't mention is the first installment of is actually $108.67 rather than $40.75. This is in California.

I'm fairly sure you're mistaken.
That $108 charge wasn't Applecare+ -- it was the taxes.

 

[rdlink]

5% return on 400 is $20 bucks.....So you are correct there is a return. I just don't see the point. We are allowed to have opinions correct? Just because we disagree doesn't mean that I think you have an attitude...

Having a difference of opinions, or deciding which method of purchase is best for one's self is fine.

But you swooped into the discussion with such statements as:

"If someone needs to finance a phone they shouldn't be buying it."

and:

"A phone should be a tool and not a frivolous purchase. If an Apple product will cause you to go into debt...don't buy one."

Statements like that come off as judgmental, myopic, narrow minded and patronizing to others. The fact is, buying a new iPhone every year is a poor financial choice. Especially if it is to be viewed as a tool. But one's own finances are one's own business. If you don't find any benefit to financing a phone, even at no interest I see that as being a valid choice on your part, for your own needs and desires. I was just pointing out the fact that others may have valid reasons for financing it, and your proclamation that your choice was somehow a better choice financially to be objectively wrong. Which it was.

Enjoy your new phone. I hope it's a great experience for you. Sincerely.

 

[KentuckyHouse]

Why do you need AppleCare if you are keeping the phone for 1 year

First, I was wrong in my original post. I misread and thought AppleCare+ was included, but I see now you still pay full price for it, it's just rolled into the plan.

As to your question, because stuff happens, and I don't want to have to pay another $329 to get another new 6S+.

 

[Taz Mangus]

Why are folks who have $4000 of available credit on a credit card dealing with this Apple Upgrade Program hassle? Why not buy the iPhone and put it on that already-established credit card, and go home happy with a new iPhone 6s or 6s Plus?

Most credit cards aren't interest free. The Apple program is interest free.

 

[GIZBUG]

" I wasn't able to get the new iphone the hour it was released.........." Tear.

 

[sulpfiction]

I was the first person to get a 6S this morning in the Ardmore, pa store. Not a single issue with the upgrade plan. Used my apple rewards Barclay card as well.

 

[0970373]

Call your CC Company in advance let them know your going to swipe for a possible cash advance/purchase from Citizens One... I was declined 3 times then I got a text message and approved it and it worked.

Free Text Msg: Citi Cards Fraud Dept.Did you attempt a charge at IPHONE CITIZENS in the amount of $109.74 on 09-25? Yes,reply 1, No,reply 2.You may also call 8003866624 and enter pin ******. To Opt-Out reply STOP.

Yeah. I called my CC before I went to my appt to let them know. It went well for me. It's more and more looking like credit card co problems than your FICO score. Also, it is run as a loan, not a line of credit from the Citizen's Bank side so that may have something to do with it depending on your personal situations. It's not always about credit score, even if it's high.

 

[Taz Mangus]

First, I was wrong in my original post. I misread and thought AppleCare+ was included, but I see now you still pay full price for it, it's just rolled into the plan.

As to your question, because stuff happens, and I don't want to have to pay another $329 to get another new 6S+.

I am wondering if the bank did not require some form of insurance on this.

 

[WowAppleWow]

Why are folks who have $4000 of available credit on a credit card dealing with this Apple Upgrade Program hassle? Why not buy the iPhone and put it on that already-established credit card, and go home happy with a new iPhone 6s or 6s Plus?

I agree. Seems odd.

 

[KentuckyHouse]

I am wondering if the bank did not require some form of insurance on this.

That's a very good point and something I'd never thought about. Probably so.

 

[Taz Mangus]

I agree. Seems odd.

Credit cards charge interest.

 

[WowAppleWow]

Having a difference of opinions, or deciding which method of purchase is best for one's self is fine.

But you swooped into the discussion with such statements as:

"If someone needs to finance a phone they shouldn't be buying it."

and:

"A phone should be a tool and not a frivolous purchase. If an Apple product will cause you to go into debt...don't buy one."

Statements like that come off as judgmental, myopic, narrow minded and patronizing to others. The fact is, buying a new iPhone every year is a poor financial choice. Especially if it is to be viewed as a tool. But one's own finances are one's own business. If you don't find any benefit to financing a phone, even at no interest I see that as being a valid choice on your part, for your own needs and desires. I was just pointing out the fact that others may have valid reasons for financing it, and your proclamation that your choice was somehow a better choice financially to be objectively wrong. Which it was.

Enjoy your new phone. I hope it's a great experience for you. Sincerely.

I can see where you are coming from. I don't feel my intent was to come off that way, I apologize. For me, I have trouble understanding why someone would finance something while possessing the cash.

 

[Shanpdx]

it is much easier to go with carrier (ATT, Verizon, T-mobile or Sprint) than opening another credit application.

in many ways this is not a good program (one could even go with barclays card installment plan than this option)