iPhone Upgrade Program Penalty

[appygirl82]

This has nothing to do with VIP or privilege. It has everything to do with how Apple has grossly mismanaged this program. They severely limited stock for existing IUP members, and the entire process is needlessly complex and antiquated, especially for one of the world's most advanced companies. It's pretty bad when the carriers, who don't have the greatest reputation to say the least, can deliver a better experience with an annual upgrade program.

Amen!! Couldn't have said it better! I am thinking my choice to go with the IUP was a mistake. Should have stuck with AT&T Next (which I haven't always had great luck on pre-order with AT&T in the past, but seems they are offering a better experience than the IUP at this point).

Pretty sad that I wake up and at almost 10am the next day, the shipping/delivery time is the same 2-3 weeks that I got after waiting until the clock struck midnight (PST) only to have the damn app AND website not work for me until 12:15. I was refreshing 3 devices (all Apple) and got screwed!!!!!

 

[rbf1138]

I signed up for IUP this year. If I want to avoid the hassle you guys went through next year (assuming they don't change things for the better), can I just pay off the full price of the phone early, which makes me own it, and then sell it like I do every year? Then buy next years at full price like I did every year until now?

 

[appygirl82]

I signed up for IUP this year. If I want to avoid the hassle you guys went through next year (assuming they don't change things for the better), can I just pay off the full price of the phone early, which makes me own it, and then sell it like I do every year? Then buy next years at full price like I did every year until now?

Yes you can do that. I actually got on the IUP last year with my 6s Plus and ended up paying it off and selling it several months ago. So yes, there is a way to get out of this!! lol

 

[bufffilm]

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.

Yes, what you say is true.

And if it really bothers you that much that to protest this, than buy the phone outright.

 

[manhattanmania]

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.

Completely concur. Another element of messed-up-ness:
Despite being unable to make an IUP appt at 3:02am in NYC- which has several big apple locations - I was able to make a launch day appt in a NYC store for an installment purchase.

How does that make any sense? it doesn't. It's ridiculous. They clearly allotted a tiny amount of phones for IUP even tho they have more to sell. Case in point my situation where there were no IUP appointments - but there were iPhone installment plan appointments.

I am happy to have the appointment, and will ask them to process as my iPhone Upgrade Program instead - but nervous they won't. I've already gotten an email from Citizens that I've been approved for a new iPhone loan w them. We'll see.

 

[ProMod]

Completely concur. Another element of messed-up-ness:
Despite being unable to make an IUP appt at 3:02am in NYC- which has several big apple locations - I was able to make a launch day appt in a NYC store for an installment purchase.

How does that make any sense? it doesn't. It's ridiculous. They clearly allotted a tiny amount of phones for IUP even tho they have more to sell. Case in point my situation where there were no IUP appointments - but there were iPhone installment plan appointments.

I am happy to have the appointment, and will ask them to process as my iPhone Upgrade Program instead - but nervous they won't. I've already gotten an email from Citizens that I've been approved for a new iPhone loan w them. We'll see.

Anoyher data point which I hadn't heard before. Thanks for the info.

 

[Branskins]

As a new enrollee, they have a year to make improvements and fix this because this year sure sounded messy...

 

[edlex]

Completely concur. Another element of messed-up-ness:
Despite being unable to make an IUP appt at 3:02am in NYC- which has several big apple locations - I was able to make a launch day appt in a NYC store for an installment purchase.

How does that make any sense? it doesn't. It's ridiculous. They clearly allotted a tiny amount of phones for IUP even tho they have more to sell. Case in point my situation where there were no IUP appointments - but there were iPhone installment plan appointments.

I am happy to have the appointment, and will ask them to process as my iPhone Upgrade Program instead - but nervous they won't. I've already gotten an email from Citizens that I've been approved for a new iPhone loan w them. We'll see.

I hope it works. If it does we can use this tactic next year if IUP gets throttled again. Please let us know on launch day what happened.

 

[rawlus]

This is the first year they've had to address existing AUP users upgrading so I think they made a lot of mistakes and should learn from them and adapt for next time around. It sucks for now but unless they are willing to dismantle the program (unlikely) chances are very good I would expect that they will use this years upgrade issues and numbers to ensure both adequate supply and a refined model for distribution... Perhaps even moving to an online credit check and normal ship to home with some sort of return box or return label or other process to return the old one when you get the new....
I think the real challenge of not requiring upgrades to exchange in person is the risk they don't return at all and having to deal with those disputes on a massive scale. They can't just charge you for not returning because people wil, just dispute the charge and say they returned it and it all goes down hill from there...

So you sort of need this first real world scenario in order to understand what your risks and liabilities might be...

I'm sure it will get solved.

 

[ProMod]

This is the first year they've had to address existing AUP users upgrading so I think they made a lot of mistakes and should learn from them and adapt for next time around. It sucks for now but unless they are willing to dismantle the program (unlikely) chances are very good I would expect that they will use this years upgrade issues and numbers to ensure both adequate supply and a refined model for distribution... Perhaps even moving to an online credit check and normal ship to home with some sort of return box or return label or other process to return the old one when you get the new....
I think the real challenge of not requiring upgrades to exchange in person is the risk they don't return at all and having to deal with those disputes on a massive scale. They can't just charge you for not returning because people wil, just dispute the charge and say they returned it and it all goes down hill from there...

So you sort of need this first real world scenario in order to understand what your risks and liabilities might be...

I'm sure it will get solved.

I agree in large part. I think Apple is getting word of their gaffe and if they hold true to form, they'll attempt to make it right both this year and moving forward. It's either that or abandon the program.

I understand sending a pre-paid box for return shipments definitely opens up the possibility for fraud and complications, but how are the carriers able to do it and not Apple?

 

[caligurl]

Amen!! Couldn't have said it better! I am thinking my choice to go with the IUP was a mistake. Should have stuck with AT&T Next (which I haven't always had great luck on pre-order with AT&T in the past, but seems they are offering a better experience than the IUP at this point).

Pretty sad that I wake up and at almost 10am the next day, the shipping/delivery time is the same 2-3 weeks that I got after waiting until the clock struck midnight (PST) only to have the damn app AND website not work for me until 12:15. I was refreshing 3 devices (all Apple) and got screwed!!!!!

you could have stuck with ATT NEXT and still ordered through apple... no reason to go directly to ATT just to get NEXT.

 

[PatrickNSF]

After reading this Apple Insider report, my guess is that IUP participants will have substantial portions of inventory set aside at the stores to fulfill their orders during the first week of availability. And I assume this can be adjusted/increased as necessary. So long as I'm able to easily upgrade in the first week of availability, I'll be satisfied.

It's worth it to me to wait a couple of days (and even pay a little more) to not have to deal with craigslist/swappa bargain hunters, or to have to keep my phone in pristine condition for resale.

http://forums.appleinsider.com/disc...ants-complain-of-no-stock-scheduling-problems

 

[Bigserver1]

The stock issue seems like a huge one.

At 12:04, there were only in store appointments on 9/16 for Gold and Silver 7+s. At 12:08, I was able to get a black 128GB 7+ (Probably the most or second most popular configuration) shipped direct to my house by 9/16 through the upgrade program.

This program is also clunkier in general than I've expected coming from Apple. I typically handle things like phone upgrades for both my wife and myself, and putting her on this upgrade program (while she was sleeping lol) was impossible. As it stands, I'll end up taking on both loans, which Citizens has inexplicably made separate loans for each phone, which is insane.

I made this point in another thread, but if I walked into a car dealership and wanted to buy two cars, they'd still only run my credit once. The fact that we can't do that with $800 phones is nuts to me.

Hopefully they work out the kinks going forward, or else I may just sell these 7s next year to pay off the remainder of the citizens loans and then go back to upgrading through VZW.

 

[edlex]

This is the first year they've had to address existing AUP users upgrading so I think they made a lot of mistakes and should learn from them and adapt for next time around. It sucks for now but unless they are willing to dismantle the program (unlikely) chances are very good I would expect that they will use this years upgrade issues and numbers to ensure both adequate supply and a refined model for distribution... Perhaps even moving to an online credit check and normal ship to home with some sort of return box or return label or other process to return the old one when you get the new....
I think the real challenge of not requiring upgrades to exchange in person is the risk they don't return at all and having to deal with those disputes on a massive scale. They can't just charge you for not returning because people wil, just dispute the charge and say they returned it and it all goes down hill from there...

So you sort of need this first real world scenario in order to understand what your risks and liabilities might be...

I'm sure it will get solved.

It says somewhere in their rules you have 14 days to return the previously financed phone to have the original loan terminated. At least that gives us the option to return the phone in store at our convenience and have the phone shipped directly to us.

 

[ProMod]

After reading this Apple Insider report, my guess is that IUP participants will have substantial portions of inventory set aside at the stores to fulfill their orders during the first week of availability. And I assume this can be adjusted/increased as necessary. So long as I'm able to easily upgrade in the first week of availability, I'll be satisfied.

It's worth it to me to wait a couple of days (and even pay a little more) to not have to deal with craigslist/swappa bargain hunters, or to have to keep my phone in pristine condition for resale.

http://forums.appleinsider.com/disc...ants-complain-of-no-stock-scheduling-problems

Very interesting. Hopefully this turns out to be true.

 

[JayLenochiniMac]

I agree in large part. I think Apple is getting word of their gaffe and if they hold true to form, they'll attempt to make it right both this year and moving forward. It's either that or abandon the program.

I understand sending a pre-paid box for return shipments definitely opens up the possibility for fraud and complications, but how are the carriers able to do it and not Apple?

They have no problem sending pre-paid boxes for AC+ Express Replacement, as they'll simply charge the credit card on file in the event of a fraud or complication.

If Apple doesn't clean up their act for next year, I'll simply pay it off and sell it as I've done in the last 10 years.

 

[JayLenochiniMac]

you could have stuck with ATT NEXT and still ordered through apple... no reason to go directly to ATT just to get NEXT.

Easier said after the fact. Nobody knew Apple would screw existing IUP customers this way.

 

[Superrjamz54]

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.

I just had my screen replaced on a 6s+ bought through the Apple Upgrade Plan for $29. AppleCare plus kind of paid for just that.

 

[noteple]

Every Year. Extended warranty. http://www.americanexpress.com/us/content/card-benefits/extended-warranty/faq.html

1. Certain purchases are not covered, e.g. items with physical damage
2. Only the Amount Charged is reimbursed.
Back in the day your $199 charge subsidized iPhone would not get you a $700 retail replacement.
3. The broken phone goes back along with original receipts to Amex insurance for inspection. You won't have it for a cheaper core charge replacement from Apple.
4. Amex only extends the terms of the original warranty. If the Genius Bar won't fix your cracked screen, dented case, toilet soaked innards or bricked device neither will Amex.

Applecare+ gives you some options for all these scenarios.
I have Amex and have used Extended warranty services.
To prevent disappointment or disaster Understand the terms and set your expectations up front.
Your Milage May Vary

 

[Surf Monkey]

i dont think they ever said anything that you would get a vip status and be priviledged to get the new phone first when launched.

Problem is, the IUP people like me were given the OPPOSITE of VIP status. We were pushed to the very back of the line. No chance to order directly from Apple without relying on local store stock. Did anyone else have this restriction on their purchase? No. The answer is no.

 

[lsh]

I switched to AUP after paying off my NXT12 6splus. (I plan to hand it down to my daughter). I hope Apple fixes the AUP for next year and hoping they make right this year so I don't regret it.
For new customers, the launch day purchase worked great.
The ATT program already had advantages with billing integration. But I like the unlocked phone thru Apple. I get AC+ anyway, so that's a wash.

 

[JayLenochiniMac]

Every Year. Extended warranty. http://www.americanexpress.com/us/content/card-benefits/extended-warranty/faq.html

1. Certain purchases are not covered, e.g. items with physical damage
2. Only the Amount Charged is reimbursed.
Back in the day your $199 charge subsidized iPhone would not get you a $700 retail replacement.
3. The broken phone goes back along with original receipts to Amex insurance for inspection. You won't have it for a cheaper core charge replacement from Apple.
4. Amex only extends the terms of the original warranty. If the Genius Bar won't fix your cracked screen, dented case, toilet soaked innards or bricked device neither will Amex.

Applecare+ gives you some options for all these scenarios.
I have Amex and have used Extended warranty services.
To prevent disappointment or disaster Understand the terms and set your expectations up front.
Your Milage May Vary

This means Extended Warranty won't work with installment plans like IUP, Next, etc.

Hence it's good to have AC+ with IUP and it's included in the purchase anyway. I've skipped AC+ in the past and taken advantage of Amex's Extended Warranty a few times with my and my wife's subsidized iPhones.

 

[cornycopier]

I just can't figure out what was so hard about sending an email out to every IUP customer eligible asking "do you plan to upgrade and which model do you want and where will you pick it up?" A week before preorders started to insure that the correct models got to the store.

Then it's just a matter of queuing up appointments. I don't care about launch day. I just care about getting a set date that I can go in and swap. This notion of checking the stock every day and hoping they might have one in is absurd and NOT the "best way to buy an iPhone"... as the graphic on their site said (oddly until yesterday) "first to join. First to upgrade".

They could start doing this NOW (sending the aforementioned emails) and save quite a bit of face from this massive gaffe. I'd be satisfied with that. But don't make ME or anybody else play the wait and see if there's stock game. Apple has to make this right, because what they plugged with this program originally clearly isn't what happened.

 

[noteple]

Happy New Business makes Repeat Business
Without Happy New Business There is No Repeat Business
And
Without Happy Repeat Business there will be Less New Business

That Said The upgrade program needs to come at the End in the payment Cycle
Shouldn't matter selecting a new phone during preorder, store pickup, or walkin
In a learning curve Hopefully next time they will get it right..........

 

[appygirl82]

you could have stuck with ATT NEXT and still ordered through apple... no reason to go directly to ATT just to get NEXT.

I know. And the experiences I'm speaking of are mostly a long time ago....back in the subsidy and contract days. I've pre ordered/picked up from Apple for several years now. This year was the first total joke...couldn't get the site to work, slipped delivery times etc