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iPhone Upgrade Program Penalty

P

ProMod

macrumors 6502a
Original poster
Dec 29, 2005
566
51
Normally, so what if you didn't get your iPhone on launch day? Get it in a few weeks or a month. No harm done.

With the iPhone Upgrade Program, however, you actually pay a penalty by missing out on the preorder. Those that enrolled in the program on iPhone 6S launch day, such as myself, will now pay a penalty by not being able to preorder the 7 for launch day.

Instead of upgrading to the new phone right at 12 months, we'll now most likely make at least one extra payment on our old phones. And when we do get the iPhone 7, say in a month, our new loan will begin in October, meaning when next year's iPhone is released in September we'll have to pay an extra payment to "catch up" before we're upgrade eligible on launch day.

This, coupled with the fact you have to go to an Apple Store to complete the transaction and have your credit pulled every single year have me figuring out how to bail from this not-so-consumer-friendly plan.
 
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It's extra bad if you don't live near an Apple Store. I live on the Big Island of Hawaii and I have to fly to Honolulu to jump through Apple's hoops... I had to forego the jet black option because it was not even available for reservation in Hawaii at all (nor a few dozen other states), and I have to book plane tickets to get to the store so I can't wait a while and try for a same-day reservation.

The least they could have done is add a disclaimer that it's not available in all states for launch day. That's pretty crappy...
 
Both 7plus blacks were immediately sold out so now I have to take a white phone if I want it at launch. Never had a white face phone before
 
kupkakez said:
Don't you just have to make 12 payments to be able to upgrade to next years model?
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Yes. But if you now start your new set of 12 payments in October or November, when next September rolls around you either have to fork out the extra cash to "catch up" on your payments and enable the upgrade, or wait until October or November again. When you actually begin your payments is very key.
 
ProMod said:
Normally, so what if you didn't get your iPhone on launch day? Get it in a few weeks or a month. No harm done.

With the iPhone Upgrade Program, however, you actually pay a penalty by missing out on the preorder. Those that enrolled in the program on iPhone 6S launch day, such as myself, will now pay a penalty by not being able to preorder the 7 for launch day.

Instead of upgrading to the new phone right at 12 months, we'll now most likely make at least one extra payment on our old phones. And when we do get the iPhone 7, say in a month, our new loan will begin in October, meaning when next year's iPhone is released in September we'll have to pay an extra payment to "catch up" before we're upgrade eligible on launch day.

This, coupled with the fact you have to go to an Apple Store to complete the transaction and have your credit pulled every single year have me figuring out how to bail from this not-so-consumer-friendly plan.
Click to expand...

Agreed, 100%!

I think a genius needs to rework the ordering process for existing iUP folks- because, you know, about 90% of them WILL UPGRADE. Apple should allocate an inventory so plan participant's can exercise their upgrade option as the contract describes.
 
Sheboygan said:
Agreed, 100%!

I think a genius needs to rework the ordering process for existing iUP folks- because, you know, about 90% of them WILL UPGRADE. Apple should allocate an inventory so plan participant's can exercise their upgrade option as the contract describes.
Click to expand...

Apple knows exactly what they're doing. Restricting stock for existing IUP customers and allocating more for other purchase methods will ensure higher profits.

JayLenochiniMac said:
So maybe beat Apple at their own game and pay it off after one year, sell it and find another means to get launch day delivery?
Click to expand...

Yeah that's an option, but no one could have known this is how Apple would do a disservice to its IUP customers until now. Live and learn.
 
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I'm on the IUP but I have no intention to upgrade. I only took it because heck, why not spend someone else's money if it's 0% APR?

If I get iP7+, maybe I will just pay outright for the sim free version when it comes out. Or maybe I will keep dragging my feet until 7S. I'm generally not a fan of upgrading. I don't like the idea of paying for half a phone and then giving the phone back. That is essentially a rental.

Plus, the 6S series is massively overpowered, so I don't see a whole lot of need to upgrade at this point.
 
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ProMod said:
Normally, so what if you didn't get your iPhone on launch day? Get it in a few weeks or a month. No harm done.

With the iPhone Upgrade Program, however, you actually pay a penalty by missing out on the preorder. Those that enrolled in the program on iPhone 6S launch day, such as myself, will now pay a penalty by not being able to preorder the 7 for launch day.

Instead of upgrading to the new phone right at 12 months, we'll now most likely make at least one extra payment on our old phones. And when we do get the iPhone 7, say in a month, our new loan will begin in October, meaning when next year's iPhone is released in September we'll have to pay an extra payment to "catch up" before we're upgrade eligible on launch day.

This, coupled with the fact you have to go to an Apple Store to complete the transaction and have your credit pulled every single year have me figuring out how to bail from this not-so-consumer-friendly plan.
Click to expand...

I hit the same wall. It's absolutely infuriating.
 
This issue is something I thought about when signing up for the AUP for the first time last night for my iPhone 7 pre-order. But getting a next phone on the absolute earliest date possible is not a priority for me. Older iPhones are still really good devices. I can wait a bit. Weeks here and there are a drop in the bucket. Having to go an Apple Store, however understandable, is another hassle but survivable. I live over 300 miles from the closest Apple Store. As long as I can tease out next year's release timeframe, I can work out the travel. Traveling places is part of life here. And none of those issues stopped me. So, I'll be honest here and say that I don't have a lot of sympathy for people in other locations with easy Apple Store access who can wait a few weeks to get their new phone. It's not a big deal.
 
aristobrat said:
How will doing this ensure higher profits for Apple?
Click to expand...

This is pretty obvious. New customers who cannot get a launch day delivery may decide not to purchase it (and so they're erring on the side of caution and reserving more stock for them), but Apple is guaranteeing themselves repeat customers with the Upgrade Program.
 
mtcowdog said:
This issue is something I thought about when signing up for the AUP for the first time last night for my iPhone 7 pre-order. But getting a next phone on the absolute earliest date possible is not a priority for me. Older iPhones are still really good devices. I can wait a bit. Weeks here and there are a drop in the bucket. Having to go an Apple Store, however understandable, is another hassle but survivable. I live over 300 miles from the closest Apple Store. As long as I can tease out next year's release timeframe, I can work out the travel. Traveling places is part of life here. And none of those issues stopped me. So, I'll be honest here and say that I don't have a lot of sympathy for people in other locations with easy Apple Store access who can wait a few weeks to get their new phone. It's not a big deal.
Click to expand...

It's not a super high priority to me either. It's more of a principle thing. Apple hypes the program as "the best way to buy iPhone" but in this case that isn't true. It would have been much easier for me to go ATT Next, which had the model/color/capacity that I want. Apple was showing only rose gold 32gig 7 Plus models at each of the two Apple stores that were even showing reservations at all.

Seems to me that they didn't think the program all he way through. Since this is the first year of upgrades on it I expect them to re-evaluate how it's done next time.
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JayLenochiniMac said:
This is pretty obvious. New customers who cannot get a launch day delivery may decide not to purchase it (and so they're erring on the side of caution and reserving more stock for them), but Apple is guaranteeing themselves repeat customers with the Upgrade Program.
Click to expand...

Not necessarily. As a frustrated returning customer on the program I seriously considered jumping back to ATT for a subsidized phone. I doubt I'm the only one.
 
Surf Monkey said:
Not necessarily. As a frustrated returning customer on the program I seriously considered jumping back to ATT for a subsidized phone. I doubt I'm the only one.
Click to expand...

Subsidized iPhone? Not possible because ATT got rid of the subsidy and it's why I'm now on this program. I've had subsidized iPhones up to the 6s and ATT finally ditched the subsidy for grandfathered unlimited data customers at the beginning of this year. It's either this program/NEXT plan/other forms of financing or pay the full price upfront.
 
JayLenochiniMac said:
Subsidized iPhone? Not possible because ATT got rid of the subsidy and it's why I'm now on this program. I've had subsidized iPhones up to the 6s and ATT finally ditched the subsidy for grandfathered unlimited data customers at the beginning of this year. It's either this program/NEXT plan/other forms of financing or pay the full price upfront.
Click to expand...

Right. Wrong word. Point still stands. I was about to give my money to ATT Next instead of Apple IUP.
 
AndrewR23 said:
it is the best way to buy iPhone, just not on day 1.
Click to expand...

We can probably figure out a way to beat Apple at their game and still consistently get launch day iPhone through the iPhone Upgrade Program from doing device swapping. For example, if you have other lines on your plan, do the IUP on one of the lines every other year and device swap to your line.
 
AndrewR23 said:
it is the best way to buy iPhone, just not on day 1.
Click to expand...

Having to go into the store and get a hard pull on your credit does not seem like the best way to get an iPhone to me. And if you can't get it in the launch month, as has been mentioned throughout this thread, you have to make extra payments. So it is perhaps one of the worst ways to get an iPhone if Apple continues to operate it this way.
 
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ProMod said:
Normally, so what if you didn't get your iPhone on launch day? Get it in a few weeks or a month. No harm done.

With the iPhone Upgrade Program, however, you actually pay a penalty by missing out on the preorder. Those that enrolled in the program on iPhone 6S launch day, such as myself, will now pay a penalty by not being able to preorder the 7 for launch day.

Instead of upgrading to the new phone right at 12 months, we'll now most likely make at least one extra payment on our old phones. And when we do get the iPhone 7, say in a month, our new loan will begin in October, meaning when next year's iPhone is released in September we'll have to pay an extra payment to "catch up" before we're upgrade eligible on launch day.

This, coupled with the fact you have to go to an Apple Store to complete the transaction and have your credit pulled every single year have me figuring out how to bail from this not-so-consumer-friendly plan.
Click to expand...

Wow this is terrible. I just wouldn't recommend using the upgrade plan. You are better off buying it full price and selling it yourself every month.
 
So what does this mean for someone like me who just signed up and is getting a launch phone on the 16th and already paid for a month.

Will I be able to get a launch day phone next year or no?
 
JayLenochiniMac said:
We can probably figure out a way to beat Apple at their game and still consistently get launch day iPhone through the iPhone Upgrade Program from doing device swapping. For example, if you have other lines on your plan, do the IUP on one of the lines every other year and device swap to your line.
Click to expand...
Quite likely, the only way to beat Apple is to stop buying Apple products. Also, the IUP includes mandatory AppleCare+ which is practically pure profit for Apple so that's kinda like a finance charge already. Doing IUP on two lines means you've got 2 ongoing device payments. If you're gonna go that route, you're better off just getting the regular installment plan (without annual upgrade option).
 
rui no onna said:
Doing IUP on two lines means you've got 2 ongoing device payments. If you're gonna go that route, you're better off just getting the regular installment plan (without annual upgrade option).
Click to expand...

You're right. I didn't think about that.

I actually don't mind AC+ on this program because I normally reap the benefits of Extended Warranty Protection offered by my Amex card in the 2nd year. Amex will only cover you up to the price you paid for your iPhone, and in the past the subsidized cost of $299 (for the 32/64GB) was more than enough to cover the various out-of-warranty repair costs of $199/229/269/299 in the 2nd year. Extended Warranty doesn't work with installment plans.
 
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