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iPhone Upgrade Program Causing Headaches for Some Launch Day Customers

Can someone who has gone through the process by putting the new phone on an existing account verify something for me?

I have an appointment to go to the Apple Store tonight. The idea of doing this was attractive to me for two reasons. First, I could use other peoples' money to finance the phone over two years. Second, I could do this without involving Verizon, and thereby avoid their stupid $40 upgrade/activation fee.

But the fine print on the deal leads me to believe that I have to somehow bring Verizon into the mix on this, and "activate" the new phone with them. This is technically unnecessary, because all I really need to do is put my existing SIM in the new phone and it will work. If I have to involve Verizon in this transaction in any way I am not interested in doing it. I'll just pay cash for an unlocked phone and go on my way.

Can anyone verify that they tried, and were successful in just buying the phone without involving giving carrier account information?
 
caligurl said:
hahahahaha! "stupid" at&t next is the same thing as apple's upgrade program... EXCEPT you don't have the credit check issues and you don't have one extra bill to worry about since it's added into your phone bill!

BOTH come out to the same price whether you trade in or not!
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Actually, to upgraded every year with AT&T, the price is higher (not by much, but still more) and you don't get Apple Care. If you opt in for AT&T's warranty service, it's 6.99, which covers everything from LOSS to Water Damage (with a deductible). So, it's really not the same thing. It actually costs more.

One thing that bothers me, is a few years ago when I traded in my 4 16gb for a 5 64gb, AT&T gave me $390 for my 4, today, my 6Plus 128GB is not worth $350. Time to start selling on e-bay.
 
mantan said:
Yeah, it can never be Apple's fault - right?

I'm sure if this was a carrier everybody would be rushing to burn them at the state. But we mother Apple can't do anything wrong....
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Except that it is being financed by a bank who is actually doing the credit report. We don't know the whole story but certainly keep jumping to conclusions.

mantan said:
It was related to the comment Steve made during the antenna problems that 'you're holding it wrong.'

it was actually a pretty good joke. But it clearly went way over your head.
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This type of joke that you thought was funny is really overused and not really funny anymore. As long as you thought it was funny though.
 
Rafagon said:
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?
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In no particular order:

1. I'd rather earn interest on my money than let Apple make interest on my money (including applecare cost)

2. Avoid transaction costs and hassle of selling my phone when ready to upgrade (many/most people who can afford an $800 phone don't want ebay hassle, nor are they dumb enough to sell below value to a reseller).

3. Removal of uncertainty, hassle, and need to stay apprised: you'll always have latest phone, always have applecare, with very few steps/hassle/risk/uncertainty. If that's what you want, anyway, you may as well streamline and amortize.

4. Not promised, but I'd imagine some level of priority access to new phones (i.e. not waking up at 3am to pre-reserve)
 
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MacRumors, you should note in the article that whatever credit card you use, there need to be enough available funds to cover 3 months of payments + taxes & fees. They only charge 1 month payment + taxes & fees but it needs to pre-authorize the full 3 months. I had this issue this morning, thankfully was able to resolve it, but it was the only part of the iUP program I wasn't aware of before going in.
 
MacRumors said:



Apple launched its iPhone Upgrade Program today in the U.S., enabling customers to purchase the iPhone 6s or iPhone 6s Plus with AppleCare+ coverage included for 24 equal payments of between around $30 and $45 per month depending on the model. After at least 12 monthly payments, the customer can upgrade to a new iPhone and restart the 24-month payment cycle.

apple-iphone-upgrade-program.jpg

Apple stipulates that the iPhone Upgrade Program is available to qualified customers only with a valid U.S. personal credit card, since the program is based on a 24-month installment loan with a 0% APR from Citizens Bank. For customers with good credit, most did not expect this requirement to be an issue. But, as launch day unfolds, some customers have had frustrating experiences.

MacRumors user onujpt writes that he was declined from the program, despite having good credit and an Apple Barclaycard with a $4,000 available balance, in the iPhone Upgrade Program Experience Thread in our discussion forums. Many other users shared similar experiences in the thread.MacRumors user inkyoto echoed similar frustration in his thread Nightmarish Experience With Apple Upgrade Program in our discussion forums, noting that he was denied approval for the iPhone Upgrade Program with both Chase and Bank of America credit cards despite having "flawless credit."It is possible that iPhone Upgrade Program approvals have been experiencing problems due to the high volume of traffic today in Apple Stores, but in the meantime some customers with good credit may be forced to pay upfront or walk away empty handed. Alternatively, some customers may opt for a carrier financing plan from AT&T, Verizon, Sprint or T-Mobile.

Enrolling in the iPhone Upgrade Program requires visiting an Apple Store. Apple states you must be at least 18 years old and bring your current iPhone, a valid personal credit card, your personal information and two forms of identification and your carrier information, such as your wireless account password. The full terms and conditions are posted on Apple's website.

Article Link: iPhone Upgrade Program Causing Headaches for Some Launch Day Customers
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Macrumors, without seeing the credit reports I would hazard a guess that most of the declines are due to the person having used too much of their open credit. The credit score does not mean sky's the limit. It means good payer. In you example above, ask the person how many cards they have active, and how much is used. Ask them to assess the Debt to Income ratio. The person had 4K of open credit. So use it. Instead they want to open more.

I suspect, being this is their first time, Apple may have tweaked the requirements a bit, but most people who think their credit is good don't understand credit, and are wrong. A decent score these days exceeds 760.
 
shanmugam said:
one question I have on this program, do we have to pay for apple care or is it FREE with the program?
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AppleCare+ is included in the monthly price. Now the question I have is, if you turn in the phone after 12 months for the upgrade to the iPhone 7 will you get a refund on the remaining 12 months of AppleCare+.
 
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ineedhalp said:
MacRumors, you should note in the article that whatever credit card you use, there need to be enough available funds to cover 3 months of payments + taxes & fees. They only charge 1 month payment + taxes & fees but it needs to pre-authorize the full 3 months. I had this issue this morning, thankfully was able to resolve it, but it was the only part of the iUP program I wasn't aware of before going in.
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So your credit card is being used to guarantee the loan?
 
Taz Mangus said:
AppleCare+ is included in the monthly price. Now the question I have is, if you turn in the phone after 12 months for the upgrade to the iPhone 7 will you get a refund on the remaining 12 months of AppleCare+.
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No, you have not paid those remaining months. Your program just extends by 12 months.
 
shanmugam said:
Argh I see, it is included in the monthly plan; it is more expensive then. most of the credit cards double the warranty
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Your monthly fee is based upon the cost of the phone, applecare, taxes divided by the number of payments
 
WowAppleWow said:
Why don't people just pay for the phone upfront? Knowing we upgrade every year.... buying the phone outright has been simple for us.
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If a lot of people choose to lease, the used market will have a glut a year from now as the carriers and Apple start to unload the off-lease units. That's probably going to put downward pressure on the prices that individual sellers can get. I don't think that's the reason why so many people aren't paying upfront, but I bet that a year from now, even more will go the lease route when they see what happens to the resale market.
 
mantan said:
Yeah, it can never be Apple's fault - right?

I'm sure if this was a carrier everybody would be rushing to burn them at the state. But we mother Apple can't do anything wrong....
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Your words. Not mine. However, I don't take a few anecdotal accounts as evidence of a systemic issue on anyone's part. Apple doesn't want to lose sales. Citizens has a motivation not to extend credit to non-creditworthy customers. So when credit applications are being denied, why assume that it's the retailer's fault?
 
CoMoMacUser said:
If a lot of people choose to lease, the used market will have a glut a year from now as the carriers and Apple start to unload the off-lease units. That's probably going to put downward pressure on the prices that individual sellers can get. I don't think that's the reason why so many people aren't paying upfront, but I bet that a year from now, even more will go the lease route when they see what happens to the resale market.
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I am thinking the same also; iPhone may not hold the value (similar to what happened iPad nowadays compared to couple of years back).
 
Taz Mangus said:
I am wondering if the bank did not require some form of insurance on this.
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They did. It's called Apple Care. If you read the terms of the plan you are required to purchase Apple Care, and if the phone is damaged when you take it back you are required to use one of your Apple Care incidents, and pay the deductible to have it repaired before you return it. If you are out of Apple Care incidents you are liable for the repairs to the phone.
 
Attempted this in Apple store in CT. I was trying to replace/upgrade a T-Mobile line. This baffled Apple computer system and they were either not able to get the IMEI to take or there was some other problem. Part of the issue appeared to be the requirement that the phone leaves activated when you use their payment plan.

The rep scampered around to ask if anyone knew how to resolve it. They tried calling T-Mobile. Dumb looks all around. Gave up and paid full price.

TL;DR: Never got as far as supplying a credit card since the Apple system at around 11:30am was not able to process a replacement T-Mobile line.
 
I guess I got lucky, smooth as silk, well not that lucky... I have a great credit score.

I was wondering why the apple rep looked nervous.
 
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