iPhone Upgrade Program vs Full Price Unlocked

[kithytom]

Here is a simple math I did for area with high sale tax. California for example:

Full price
iPhone 6s Plus 16GB $749 + AppleCare+ $99 + 9.5% Sale Tax $80.56 = $928.56

iPhone Upgrade Program
36.58/mo x 24 months = $877.92

even if you don't want get a new iPhone every year, iPhone Upgrade Program is still the way to go am I right?

 

[koulmj]

What' up with the 36.58? The website says 32.41, is the 36.58 with your tax rate?

And the fine print says 24 month installment loan from a bank, does that mean if I upgrade next year same time that I have 12 months left on the same loan?

 

[bmms8]

The way i see it for the model you're showing:

36.58*12 months for one year ownership: 438.96 with AC+
749 + 99 *1.08: 915.84.


Unless I'm wrong, id much rather purchase the phone outright and sell my iPhone for more than ~477 which is the difference in one year of ownership.

 

[JPIndustrie]

Ya I think the whole point is the $$ difference is negligible either way.

It's just another option and I'm glad there's now an Apple-endorsed option. It will take a lot on Apple's part to ensure this works (in partnership with whatever bank they have).

I appreciate the convenience they provide but now if it isn't a contract with the carrier its now a contract with Apple. I'd prefer the freedom to pay straight up $$ and do what I want with my own hardware.

 

[flur]

Here is a simple math I did for area with high sale tax. California for example:

Full price
iPhone 6s Plus 16GB $749 + AppleCare+ $99 + 9.5% Sale Tax $80.56 = $928.56

iPhone Upgrade Program
36.58/mo x 24 months = $877.92

even if you don't want get a new iPhone every year, iPhone Upgrade Program is still the way to go am I right?

You will still have to pay tax on the phone if you do the upgrade program, and as the tax varies by state, it's likely not included in the number. So really it's full price $848 versus financed $878.

 

[0007776]

Here is a simple math I did for area with high sale tax. California for example:

Full price
iPhone 6s Plus 16GB $749 + AppleCare+ $99 + 9.5% Sale Tax $80.56 = $928.56

iPhone Upgrade Program
36.58/mo x 24 months = $877.92

even if you don't want get a new iPhone every year, iPhone Upgrade Program is still the way to go am I right?

California requires you to pay the sales tax on the full price of the subsidized phone up front, I believe it is the same in most other states that have sales tax so you are likely to come out exactly the same if you go the full 24 months. The real question is how does the amount you have left to pay when the next iPhone comes out compare to what you would get from selling the one you buy outright?

 

[Lobwedgephil]

Another question is how long until full price unlocked is available to order. 3-4 months last year?

 

[0007776]

Another question is how long until full price unlocked is available to order. 3-4 months last year?

Buy the T-Mobile version.

 

[JodyK]

Conflicting pricing on the upgrade program on Apple's own site ...

First pic is if you go into pricing of the iPhone 6S and configure
Second pic is if you go to the upgrade section

 

[flur]

Buy the T-Mobile version.

Sure, if you have T-Mobile or AT&T. Sprint and Verizon customers won't be able to use the phone off LTE, which is pretty problematic, especially given you can buy a fully working phone for the same price.

FWIW, Verizon phones that are paid for full price ARE unlocked once you add them to a plan. They will also work fully on AT&T and TMo, from what I'm told, so if you have Verizon now and need to switch later on, that's really the best bet.

 

[0007776]

Sure, if you have T-Mobile or AT&T. Sprint and Verizon customers won't be able to use the phone off LTE, which is pretty problematic, especially given you can buy a fully working phone for the same price.

FWIW, Verizon phones that are paid for full price ARE unlocked once you add them to a plan. They will also work fully on AT&T and TMo, from what I'm told, so if you have Verizon now and need to switch later on, that's really the best bet.

All Verizon phones are unlocked even if you get a subsidized one. And Verizon will work perfectly fine with a T-Mobile phone even if you are in an area without LTE. Using a T-Mobile phone on Sprint may be more problematic, but that is due to Sprint's policy rather than any technical issue.

 

[pukrnukr]

Another question is how long until full price unlocked is available to order. 3-4 months last year?

Hopefully they will let people upgrade at the pre-order of iPhone 7.

The other thing I'm wondering is if applecare+ resets with the new phone? If I were to make 2 applecare+ claims (accidental coverage... broken screen) within the first 12 months; will I get another 2 claims when I get the new phone? I've had several iPhones before my current 6+. I've never broken an iPhone before my 6+, and I've managed to break the 6+ twice already. If it does reset, the extra protection and convenience may be worth the extra premium compared to reselling yourself. Plus I find I usually don't get as much of my money back when trying to resell the highest end GB models compared to the 16GB.

** Applecare+ is now $129 for the new model iPhones, not $99.

 

[flur]

And Verizon will work perfectly fine with a T-Mobile phone even if you are in an area without LTE. Using a T-Mobile phone on Sprint may be more problematic, but that is due to Sprint's policy rather than any technical issue.

Yeah, that's what I said. Verizon iphones work on VZ, TMO and ATT. TMO iphones work on TMO and ATT, but not Sprint or VZ.

Other carrier's iphones not working on Sprint is actually due to the fact that CDMA is still used for calls and out-of-LTE data. That's a technical issue, not policy. VZ has the same issue.

Also, my understanding from VZ is that their phones are only unlocked when they are paid in full, so a subsidized phone won't be unlocked until the contract is paid off. BUT I haven't checked in the last year, so they may have changed this.

 

[Lobwedgephil]

Buy the T-Mobile version.

Do you need a mobile account to order that phone?

 

[JodyK]

California requires you to pay the sales tax on the full price of the subsidized phone up front, I believe it is the same in most other states that have sales tax so you are likely to come out exactly the same if you go the full 24 months. The real question is how does the amount you have left to pay when the next iPhone comes out compare to what you would get from selling the one you buy outright?

^^ great question ...

I have an iPhone 6 plus 128 with Apple Care. A new iPhone 6S plus would run me $949 + 129 + sales tax 6% where I am $64.68 (I think AppleCare is taxed ?? no??) = $1142.68

Depending on what the final monthly is ... I saw it as $47.45 and also $44.91 for the Upgrade program.

$47.45 = $569.40 a year ($1138.80 for 24 months)
$44.91 = $538.92 a year ($1077.84 for 24 months)


I checked ebay and see the iPhone 6 Plus 128GB with Applecare selling right at $700
eBay changes the seller 10% plus some listing fees .. Paypal around 3% ... this would net you approx. $605


$1142.68 paid - $605 resell in a year (assuming it holds this value in a year since a completely different model will prob come out) = $537.68 difference


$569.40 - $537.68 = $31.72 / 12 = $2.64 a month you are paying for upgrade convenience
$538.92 - $537.68 = $1.24 / 12 = $0.10 a month you are paying for upgrade convenience


I don't like to finance anything if possible ... to me a house etc has to be as I am not financially able to pay cash for a house ... but this program makes sense to me ... you are paying approx. pennies to $3 a month and don't have to hassle with selling your old phone and get the latest tech each year. I get the new iPhone every year already .... sign me up!!!!

 

[JodyK]

Do you need a mobile account to order that phone?

No anyone can order a full price contract free iPhone labeled "T-Mobile" it will come factory unlocked but will have a T-Mobile sim pre installed.

 

[flur]

** Applecare+ is now $129 for the new model iPhones, not $99.

That makes the financed phone exactly the same price as the paid-in-full phone with AC+.

 

[JodyK]

That makes the financed phone exactly the same price as the paid-in-full phone with AC+.

WOW your right ... I don't like finance programs but this one makes a lot of sense. I think they factor in that it keeps some non Apple exclusive customers locked into the iPhone. I buy the newest model unlocked every year already so this makes perfect sense for me!

 

[pukrnukr]

^^ great question ...

I have an iPhone 6 plus 128 with Apple Care. A new iPhone 6S plus would run me $949 + 99 + sales tax 6% where I am $62.88 (I think AppleCare is taxed ?? no??) = $1110.88

Depending on what the final monthly is ... I saw it as $47.45 and also $44.91 for the Upgrade program.

$47.45 = $569.40 a year ($1138.80 for 24 months)
$44.91 = $538.92 a year ($1077.84 for 24 months)


I checked ebay and see the iPhone 6 Plus 128GB with Applecare selling right at $700
eBay changes the seller 10% plus some listing fees .. Paypal around 3% ... this would net you approx. $605


$1110.68 paid - $605 resell in a year (assuming it holds this value in a year since a completely different model will prob come out) = $505.68 difference


$569.40 - $505.68 = $63.72 / 12 = $5.31 a month you are paying for upgrade convenience
$538.92 - $505.68 = $33.24 / 12 = $2.77 a month you are paying for upgrade convenience


I don't like to finance anything if possible ... to me a house etc has to be as I am not financially able to pay cash for a house ... but this program makes sense to me ... you are paying approx. $3-5 a month and don't have to hassle with selling your old phone and get the latest tech each year. I get the new iPhone every year already .... sign me up!!!!

Yeah that's pretty much what I'm thinking. If I have to pay a little extra a year and just turn in an old phone, its probably going to be worth it. You're still missing +$30 because applecare is listed as $129 now.

 

[0007776]

Yeah, that's what I said. Verizon iphones work on VZ, TMO and ATT. TMO iphones work on TMO and ATT, but not Sprint or VZ.

Other carrier's iphones not working on Sprint is actually due to the fact that CDMA is still used for calls and out-of-LTE data. That's a technical issue, not policy. VZ has the same issue.

Also, my understanding from VZ is that their phones are only unlocked when they are paid in full, so a subsidized phone won't be unlocked until the contract is paid off. BUT I haven't checked in the last year, so they may have changed this.

T-Mobile phones will work on Verizon since at least the iPhone 6 and possibly since the 5S. The CDMA radio is in there, the T-Mobile/AT&T models are the same model number as Verizon. Verizon has changed their policy in recent years to activate some other devices such as unlocked AT&T or T-Mobile phones. Sprint could activate them if they wanted to as the CDMA radio is there, but so far Sprint hasn't changed their policy of not activating phones that weren't sold as Sprint phones.

And with verizon phones being unlocked that was a requirement that the FCC put on them when they bought the spectrum that they now use for LTE so they are unlocked even if subsidized.

 

[JodyK]

Yeah that's pretty much what I'm thinking. If I have to pay a little extra a year and just turn in an old phone, its probably going to be worth it. You're still missing +$30 because applecare is listed as $129 now.

corrected the math .. WOW it really makes sense now! Even if the monthly payments are pre-taxed and you have to add 6% to that ... and even if you could get an extra $100 reselling your phone ... the ability to have the latest and greatest and know its covered under warranty is awesome!

 

[flur]

T-Mobile phones will work on Verizon since at least the iPhone 6 and possibly since the 5S. The CDMA radio is in there, the T-Mobile/AT&T models are the same model number as Verizon.

Look at the 6S specs. The TMO and ATT phones don't have the CDMA bands anymore.

 

[0007776]

Look at the 6S specs. The TMO and ATT phones don't have the CDMA bands anymore.

Interesting, that does appear to be the case, I wonder why apple decided to change that this time around...

 

[UPBaylor]

Thanks for saving me the time on doing the math. A couple bucks a month extra is worth it to have zero hassle factor. It's similar to trading in a car IMO. I don't mind not getting the absolute last dollar for the convenience.

And, I'm also one that hates financing anything other than a house (and that's somewhat debatable) so I was originally planning on paying full price. Unless something else surfaces, this is the way to go - for me at least.

The only question I have is how valuable is the AppleCare during the first year? The phone is already under warranty, so it seems like the benefit is just having it for accidental damage, right?

 

[617aircav]

Thanks for saving me the time on doing the math. A couple bucks a month extra is worth it to have zero hassle factor. It's similar to trading in a car IMO. I don't mind not getting the absolute last dollar for the convenience.

And, I'm also one that hates financing anything other than a house (and that's somewhat debatable) so I was originally planning on paying full price. Unless something else surfaces, this is the way to go - for me at least.

The only question I have is how valuable is the AppleCare during the first year? The phone is already under warranty, so it seems like the benefit is just having it for accidental damage, right?

Right.