iPhone Upgrade Program [MERGED]

[rui no onna]

Very simple. When you're buying it from a carrier, you're not really buying it. They are just the middle man. They make zero money on the transaction itself, it's all on the service. The only upside for the carrier selling it is they can get you into a service agreement. That's the win for them.

Technically, they do make money off the device. That 0% installment plan isn't quite 0% since they're likely paying Apple just $400-500 for each phone (latest non-Plus 16GB). Of course, they make lots, lots, lots more on the service so it's good for carriers to be able to lock customers into long-term contracts.

 

[xerenthar]

John Legere (T-Mobile CEO) tweeted that T-Mobile is coming out with a new deal/version of JUMP that is better than the iPhone Upgrade Program.

 

[jpcarro]

#1: yes that's not good. I assume you wouldn't have to do that every year.
#2: According to the Upgrade Program page your phone is indeed unlocked
#3: If you upgrade annually you'll only have paid $64.50 for AppleCare+. Just as good as a refund. Probably why the deductible went up to $99.

#2 Yeah, and I recall Eddie Cue saying it would be unlocked.
#3 Oh right, that works.

I like the iPhone Upgrade Program. Maybe next year, they'll do credit checks at preorder time and the appointment won't be necessary. And we'll get to see all the credit check agencies servers crash.

 

[mattopotamus]

Yep. That's a big question for some folks. Does it require you to have a traditional carrier plan? I do wonder if they're going to run a credit check. One of the requirements is having a US credit card so maybe if you have one they assume you're an OK risk? If they don't run a credit check, it's possible they might need you to have a postpaid plan as support of your credit worthiness. Alas, when I clicked on the link for the full terms and conditions, it just said Coming Soon.

Oh yeah, this will also increase iPhone ASPs because of all the folks who'll "buy" AC+ that wouldn't have gotten it if not for the installment plan. 😛

I am almost certain you have to do a traditional post paid plan. I entered my number on the apple website and it did not find my account with ATT b.c I am on prepaid. Said I could do it with a new line.

 

[BerMuc]

I assume it works as follows:
You go the website, shop the phone, on checkout you select the Annual Upgrade program. Then you pay off your monthly installments. Next year, when the new phones come out (pre-order), you do the same thing, shop your phone, if it's the same size (GB), nothing will change (installment rate-wise), you simply select that you want to upgrade since you are a Annual Upgrade program customer. Then you probably have 1 or 2 weeks after you received the device to ship your old one in. Done. If you decide to not continue the program, you own the device 2 years after the last upgrade.

CC check will probably be somewhat hard on this one.

 

[imlynxy]

John Legere (T-Mobile CEO) tweeted that T-Mobile is coming out with a new deal/version of JUMP that is better than the iPhone Upgrade Program.

He better twitts when we have LTE 12 here in MA. His home state far behind NY and Fl. OPS!!!!.... he lives in NY, that's why. I have constant partially disabled 4G on t-mo and 0.5 bar LTE at home. Just have it for international usage now.

His Jump will be on a locked phone.

 

[titans1127]

Another thing for you to think about, you can't use your subsidy unless you order from At&t. You can't order from apple for a 2 year contract anymore.

Very true. I actually work at an ATT retail location that can still do 2-year contracts though there is no guarantee that they will have what I want on launch day so I will have to risk ordering from ATT's website on Saturday instead.

 

[CE3]

I am almost certain you have to do a traditional post paid plan. I entered my number on the apple website and it did not find my account with ATT b.c I am on prepaid. Said I could do it with a new line.

And that is ridiculous. With iPhones being as popular as they are, a program like this has the potential to shake up the carrier market, which it desperately needs (because as far as I'm concerned, they all suck). If the phone is unlocked, I should be able to set it up with any carrier I want, or, for that matter, not even set it up with a carrier plan at all. Apple will still be getting more money from me paying full price direct to them, so why do they care?

 

[mattopotamus]

And that is ridiculous. With iPhones being as popular as they are, a program like this has the potential to shake up the carrier market, which it desperately needs (because as far as I'm concerned, they all suck). If the phone is unlocked I should be able to set it up with any carrier I want, or, for that matter, not even set it up with a carrier plan at all. Apple will be getting more money from me paying full price direct to them, so why do they care?

I agree, but it makes sense from a apple/carrier relationship standpoint. One of two things would happen: 1) it is not offered to prepaid customers 2) it is, and the price of prepaid goes up to compensate.

I would be willing to put money on it not being an option unless you are post paid. For example, on launch it is going to tell me my number is not associated with ATT and I need to set up a new plan. The new plans will all be post paid options.

That is why it is tied to just the big 4 anyways. Otherwise they would just finance you a unlocked phone. Why do they care where you take it? Oh yeah, that is b.c it is just another arrangement with the carriers.

 

[kybldmstr]

Did anyone notice that the service fee for iPhone 6s has gone up to $99?

 

[mattopotamus]

Did anyone notice that the service fee for iPhone 6s has gone up to $99?

and AC+ is now $129. It may actually make sense to NOT get AC+.

 

[kybldmstr]

and AC+ is now $129. It may actually make sense to NOT get AC+.

How much is a single out of warranty replacement?

 

[randian]

I agree, but it makes sense from a apple/carrier relationship standpoint. One of two things would happen: 1) it is not offered to prepaid customers 2) it is, and the price of prepaid goes up to compensate.

You can already BYOD on most prepaid plans, why would BYOD iPhones cause a pricing change?

 

[mattopotamus]

You can already BYOD on most prepaid plans, why would BYOD iPhones cause a pricing change?

Imagine you can buy your phone from apple (finance though them instead of the carrier) and get your plan from just ATT or another carrier. Why would anyone be post paid and pay the extra $15 per smartphone?

This iPhone finance will only be for post paid customers. I do prepaid b.c it is cheaper and buy my phones outright. However if ATT would let me do next with prepaid I would. They do not b.c the monthly plans are cheaper.

I hope that makes sense. Apple is not trying to ruffle the feathers of the carriers. Offering this plan would push people to stop financing through the carriers and only get a phone plan from them. If you are only getting a phone plan from them, prepaid makes the most sense b.c there is no device fee. Otherwise apple would let you just finance the phone. They make you activate it or have an active line (which I bet has to be post paid).

If this is only available to post paid customers, it really changes nothing at all....and that is exactly what this is...a mind Fu** for people 🙂

 

[jamezr]

IBut don't forget if you buy from carrier you are stuck with them for 24 months. Buying from Apple might cost a small premium but you can switch service providers at will.

That part should be a sticky in this thread. Consumers win when they can buy a phone and use it wherever they want. Now carriers will have work harder to get customers. That means better rates and plans.

 

[randian]

Imagine you can buy your phone from apple (finance though them instead of the carrier) and get your plan from just ATT or another carrier. Why would anyone be post paid and pay the extra $15 per smartphone?

Why would the carrier distinguish between a 3rd-party financed phone and one paid for with cash? Either way it's BYOD. I financed a Moto X through Motorola. The carrier didn't care that i didn't finance the phone through them. I see no evidence that BYOD has caused prepaid prices to increase. If the carriers are so scared of that why didn't they forbid Apple from selling phones for cash or simply deny BYOD phones? Other than ignorance, postpaid has typically had features prepaid didn't, like included roaming and international calling. That's valuable to some people.

 

[mattopotamus]

Why would the carrier distinguish between a 3rd-party financed phone and one paid for with cash? Either way it's BYOD. I financed a Moto X through Motorola. The carrier didn't care that i didn't finance the phone through them. I see no evidence that BYOD has caused prepaid prices to increase. If the carriers are so scared of that why didn't they forbid Apple from selling phones for cash or simply deny BYOD phones? Other than ignorance, postpaid has typically had features prepaid didn't, like included roaming and international calling. That's valuable to some people.

I guess I am not explaining it right, and you will have to wait until you see with your own eyes the iPhone upgrade plan will not be an option for prepaid customers.

 

[CE3]

Imagine you can buy your phone from apple (finance though them instead of the carrier) and get your plan from just ATT or another carrier. Why would anyone be post paid and pay the extra $15 per smartphone?

This iPhone finance will only be for post paid customers. I do prepaid b.c it is cheaper and buy my phones outright. However if ATT would let me do next with prepaid I would. They do not b.c the monthly plans are cheaper.

I hope that makes sense. Apple is not trying to ruffle the feathers of the carriers. Offering this plan would push people to stop financing through the carriers and only get a phone plan from them. If you are only getting a phone plan from them, prepaid makes the most sense b.c there is no device fee. Otherwise apple would let you just finance the phone. They make you activate it or have an active line (which I bet has to be post paid).

If this is only available to post paid customers, it really changes nothing at all....and that is exactly what this is...a mind Fu** for people 🙂

Yeah, your reasoning makes sense and you're probably right, but some ruffling of feathers is mostly definitely in order!

Since these installment plans are all the rage now, someone needs to start a company that offers truly unlocked and carrier-free smartphones on installment pricing.. or even an existing company like Amazon could do it.

 

[rui no onna]

I agree, but it makes sense from a apple/carrier relationship standpoint. One of two things would happen: 1) it is not offered to prepaid customers 2) it is, and the price of prepaid goes up to compensate.

I would be willing to put money on it not being an option unless you are post paid. For example, on launch it is going to tell me my number is not associated with ATT and I need to set up a new plan. The new plans will all be post paid options.

That is why it is tied to just the big 4 anyways. Otherwise they would just finance you a unlocked phone. Why do they care where you take it? Oh yeah, that is b.c it is just another arrangement with the carriers.

True. That said, I see this move more like Apple trying not to alienate carriers right away. Apple still has to tread carefully given carriers are Apple's biggest customers. Rather, Apple's introducing changes little by little so that more "carrier customers" become "Apple customers". Once that transition's done, Apple will probably do away with the carrier restriction for the iPhone Upgrade Program.

 

[HeyKatie]

Hoping this will slowly make its way to Canada.

 

[mattopotamus]

Yeah, your reasoning makes sense and you're probably right, but some ruffling of feathers is mostly definitely in order!

Since these installment plans are all the rage now, someone needs to start a company that offers truly unlocked and carrier-free smartphones on installment pricing.. or even an existing company like Amazon could do it.

exactly. Obviously we could get 0% intere

True. That said, I see this move more like Apple trying not to alienate carriers right away. Apple still has to tread carefully given carriers are Apple's biggest customers. Rather, Apple's introducing changes little by little so that more "carrier customers" become "Apple customers". Once that transition's done, Apple will probably do away with the carrier restriction for the iPhone Upgrade Program.

I could absolutely see it working that way in the future. Literally just get the phone from apple, SIM free, without brining a plan into the equation.

 

[CE3]

Why would the carrier distinguish between a 3rd-party financed phone and one paid for with cash? Either way it's BYOD. I financed a Moto X through Motorola. The carrier didn't care that i didn't finance the phone through them. I see no evidence that BYOD has caused prepaid prices to increase. If the carriers are so scared of that why didn't they forbid Apple from selling phones for cash or simply deny BYOD phones? Other than ignorance, postpaid has typically had features prepaid didn't, like included roaming and international calling. That's valuable to some people.

They can't forbid Apple from selling their own products.. they could only stop carrying their phones, which would be a huge PR disaster for any of them to do.

 

[nikster0029]

So if I don't have an upgrade, can I still go through this route? I am confused because I am a business user on Verizon and I never have the opportunity to upgrade early since Apple doesn't deal with business customers

 

[randian]

They can't forbid Apple from selling their own products.. they could only stop carrying their phones, which would be a huge PR disaster for any of them to do.

They could refuse to allow Apple-sold phones on their networks. The fact that they do not says that this linkage between Apple's financing program and having a postpaid carrier line is unnecessary. Why forbid a Cricket or Straight Talk customer from financing a phone through Apple? That sure doesn't help Apple.

 

[sniffies]

John Legere (T-Mobile CEO) tweeted that T-Mobile is coming out with a new deal/version of JUMP that is better than the iPhone Upgrade Program.

But won't be available to prepaid customers.