iPhone Upgrade Program [MERGED]

[CE3]

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

But how can they refuse iPhones on their networks when there are already millions of customers with existing contracts using them? The contracts they have with their customers wouldn't allow them to do this. The only thing they could do at this point is stop selling iPhones, which would be a disaster, resulting in even greater losses and probably wouldn't last a month.

I agree with you, though: I think if Apple wants to do this right, there should be absolutely no carrier or carrier plan restrictions for their upgrade program.. and I hope that's the direction its headed in.

 

[wpn]

I'm on AT&T. I own my iPhone 5 as it came off contract in March 2015. Coincidentally AppleCare+ replaced the unit a month or so later. Currently my month to month plan offers 6GB of data which is more than sufficient for my needs. It costs $79.27 a month including all taxes and fees. In order to upgrade to a new 16GB iPhone 6S it will cost me an activation fee plus close to $40 a month extra with taxes and fees.

I'll wait another year for an iPhone 7.

 

[mattopotamus]

This is what prepaid customers will see.

 

[rui no onna]

They could refuse to allow Apple-sold phones on their networks.

Verizon can't actually do this. If they do, they'll probably face heavy fines from the FCC. AT&T and T-Mobile both have open networks so it's unlikely they'll start blocking what is probably a huge percentage of a profitable customer base.

 

[randian]

Verizon can't actually do this. If they do, they'll probably face heavy fines from the FCC. AT&T and T-Mobile both have open networks so it's unlikely they'll start blocking what is probably a huge percentage of a profitable customer base.

Then what leverage did they have with Apple to lock out MVNO and prepaid customers?

 

[nrvna76]

So.. Couldn't you just use a friends phone number to get past this screen and then activate on prepaid and make your payments?

 

[HEK]

Yea I was thinking of upgrading another line to at&t next for $27
But this seems like a better deal $31 and you get Apple care + plus is unlocked

Do you get to keep the phone if you want after its paid or do you have to return it next year ?

Sure Apple will let you keep the phone after only paying half for it. NO.....It's not paid until you make the 24th payment. I calculated it out and for the 6s plus the Apple program cost just under $100 dollars a year les than the AT&T Next 12/20 program. Dont't forget to add in AppleCare+.

 

[maxsix]

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

Actually I did. Being a new program from Apple I read all terms and agreement info on Apple's site.

It's no surprise that if you buy via Apple's program you will pay more for the phone than you would with AT&T.

I'm going to buy through AT&T like I did last year. AT&T will save me a whopping $144 for the year.

So if just some of the buyers also have AT&T and excellent credit like I have thats $144 per customer that goes directly to Apple's coffers.

Now you see why Apple is Fat and Happy, Flush with Cash...

 

[noles1983]

Too many idiots abuse the applecare system, the price hike was unavoidable. It didn't make sense for me personally to have it, now it really doesn't.

 

[rui no onna]

Then what leverage did they have with Apple to lock out MVNO and prepaid customers?

Umm, how about the millions of customers who still upgrade via carrier subsidies and/or financing? Right now, most folks still get their devices through their carrier. As I mentioned earlier, I think Apple's proceeding slowly with the transition so it doesn't step on carrier toes until Apple has a bigger foothold on the market.

By the way, it seems like now Apple is allowing all "carrier-branded" iPhone 6s and 6s Plus to be bought from their website full-price.

 

[sjc83]

So what if I get the phone after 12 months give the phone to wife can I still get a new phone ?

 

[HEK]

The site is up now

http://www.apple.com/shop/iphone/iphone-upgrade-program
6S 6S+
16GB $32.41/mo. $36.58/mo.
64GB $36.58/mo. $40.75/mo.
128GB $40.75/mo. $44.91/mo.

It seems a little pricey?

They take price of phone plus price of AppleCare+ and divide by 24 months. You pay zero interest and phone costs you 50%. Could you do better selling yourself, perhaps, but the their are the hassles. The carriers didn't want to continue with the subsidy pricing and hidden balance of phone costs in the phone plan. So now Apple sticking it to them with their own monthly plan. I calculated that Apple plan saves me $97 dollars for the year over the ATT Next 12/20 plan.

 

[mb2008]

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.

I suspect this has more to do with credit-worthiness than keeping the carriers happy. I see on the Apple Store app there is an option to buy unlocked (T-Mobile) full price. I don't know how/what credit check process will be used, but knowing that the iPhone installment buyer has credit with one of the big carriers is an extra layer of credit protection for the bank.

I have 5 unsubsidized phones on ATT (bought with Next and then paid off), it would be cheaper to prepay but it's not worth the hassle trying to manage usage across three households. I would probably use this program but Apple has priced me out of Applecare. I will just use Next or buy unlocked, whichever gets me a phone faster.

 

[HEK]

It's essentially the NEXT program with a little bump for AppleCare.

Of course NEXT was blasted as evil, greedy and stupid and any customer who used it was getting duped because AT&T introduced it. But since this upgrade program is from Apple it'll be considered groundbreaking and forward thinking.

HaHaHa nailed it! It's all abou perception not reality. Reality they are basically identical zero interest payment plans. Perception is AT&T try's to cheat customers, has poor service and inconsistent customer relationships. Apple has genious, great trade in/repair policies, no restocking fees, no activation fees and has the interests of customer at heart.

 

[randian]

HaHaHa nailed it! It's all abou perception not reality. Reality they are basically identical zero interest payment plans. Perception is AT&T try's to cheat customers, has poor service and inconsistent customer relationships. Apple has genious, great trade in/repair policies, no restocking fees, no activation fees and has the interests of customer at heart.

AT&T's Next program itself didn't cheat customers, it was the fact that they were trying add it on top of subsidy-level service pricing that cheated customers. AT&T has since corrected that problem.

 

[HEK]

I don't see how this is a great deal, you basically pay for the entire phone, to 'rent' it? If you got to keep the phone at then end of the year it would be ok.

Come on, think, you pay for phone over 24 months. In a year you only paid half.

 

[HEK]

3d grade Math problem is a real problem on the forum .

128 iPhone 6s (not plus) = 849, New Apple care for 6s is 129. We have 849 + 129 = 978/(12+2)=978/24=40.75. It is 0 percent financial loan for iphone 6s 128+ apple care.

We should have only tech. questions here

1. Will we preorder online and go to the store day one to obtain the iPhone and sign credit documents?
2. If it is unlocked - what model is it GSM with LTE band 30 or VZW?Sprint CDMA without LTE30? LTE 30 is the future band for Att.
3. The main question : Can I get it day 1?
4. I don't care if I can pay it faster since it is ZERO PERCENT LOAN. BUT... every year when I sell my old iPhone I call Apple and get refund for unused part of Apple Care. Not easy, they transfer me 2-3 times, but I get it. Can I make the same with Apple credit-upgrade program?
5. How much will it be to unlock iPhone 6s with 3d part vendors if I go with Att 2 years contract?


remarks:
1. If we need to go to the store = Apple is not as efficient as should be. Same story like trying to show that we can recycle all the iphone, but it has highest possible SAR level. Do they like nature so much?!
2 We don't know what happens with Att next. Today they buy Mexican, tomorrow when they finally realize that they alone without customers and they implement LTE 30 in 2 months
3. My assumption is NO

You are not paying full AppleCare so don't need second year refund. You are paying monthly. In twelve months you paid for 1st year only of AppleCare.

 

[pragmatous]

You have to trade it in. It says so on the buyback webpage.

I wonder if one can pay it off early and own the phone or does one have to trade it in.

 

[fjd726]

I'm curious if this will void my unlimited plan on Verizon by moving toward their upgrade program. I'm thinking not but hesistant to be the first to try it.

 

[crazymeeshu]

You have to trade it in. It says so on the buyback webpage.

Can you link to the buyback webpage?

Based on what I understand, you have the option of trading it in after 12 months. You can keep using and paying the monthly installments until all 24 are paid off, at which point you own the device. You're not required to trade it in after 12 months.

 

[nostresshere]

Could I buy the 6S from Apple on the installment plan and then activate it on my off-contract Verizon account that I still have with a grandfathered unlimited data plan?

You can put any phone you want on your service. An old iphone3, and flip phone or even a 6s. It is just a phone.

 

[HEK]

How much is a single out of warranty replacement?

Bet that goes up too

 

[nostresshere]

I'm curious if this will void my unlimited plan on Verizon by moving toward their upgrade program. I'm thinking not but hesistant to be the first to try it.

Your service and your phone are two different things. You can continue your unlimited with an Iphone3 if you want. You know people break or lose their phones all the time and replace it with somethingelse.

 

[pragmatous]

That's 538.92 for the iPhone 6s plus 128GB. That's half the cost.

So it'll cost you 1077.84 to pay it out right. Lets say you sell it on craigs list a year later and get $600 back. You would have paid 477.84 for the phone. It's a gamble though. You might not get $600 dollars. You might get $400 back. Depends right?

So 538.92 a year guaranteed for a new phone every year, OR,
$477.84 a year but it's a gamble. You might not get that lucky.

I'd rather go for the sure thing to be honest. Less hassle. Less chance of getting it stolen on you from a bad sale. Or dealing with the wrong people to sell your iphone. You deal with Apple directly no hassle.

The site is up now

http://www.apple.com/shop/iphone/iphone-upgrade-program
6S 6S+
16GB $32.41/mo. $36.58/mo.
64GB $36.58/mo. $40.75/mo.
128GB $40.75/mo. $44.91/mo.

It seems a little pricey?

 

[pragmatous]

You forgot the tax.

You also neglected the cents which is important if you're doing correct math.

32.41 x 12 = 388.92
Cost of phone = 388.92 x 2 = 777.84 (this would include tax and applecare+)

When you trade in your phone for a new phone, assuming you trade it in right away, you're getting half for the phone. Which is pretty good. The longer you keep it the less it's worth doing. So it's really designed for people who want the new phone every year right away.

Did you actually do the math?

$32/mo for 12 months is $384. The 6S 16GB is $549 brand new. Add in $99 for AppleCare+ and the difference is $264. Do you think a 12 month old iPhone is only worth $264? You could sell it for a lot more yourself.