iPhone Upgrade Program vs Full Price Unlocked

[UPBaylor]

Did you tax your month Apple costs? If so, that adds another 6%, correct? That would be an annual cost of $603.56.

And, with your model (6s, 128 GB) it looks like the higher price of $47.45 applies.

So, my calcs have it costing an extra $5.49/month or $65.88 annually. That still might be worth it to me for the avoided hassle factor. You never know what you'll actually get for your sold or traded phone.


Also, dropping down the memory ladder yields only a $5/month savings or $60/year for a $100 drop in phone price. So, that adds another $40 annually to your costs. So, the best deal appears to be at the highest memory level.

Correct anything I did wrong.

 

[flur]

Did you tax your month Apple costs? If so, that adds another 6%, correct? That would be an annual cost of $603.56.

And, with your model (6s, 128 GB) it looks like the higher price of $47.45 applies.

So, my calcs have it costing an extra $5.49/month or $65.88 annually. That still might be worth it to me for the avoided hassle factor. You never know what you'll actually get for your sold or traded phone.

Correct anything I did wrong.

For the 128gb 6s, the monthly financing is $40.75.
http://www.apple.com/shop/iphone/iphone-upgrade-program

Financed cost: $40.75/mo x 24mos = $978
Full Price = $849 + $129 (AC+) = $978

Since they're the same cost, the tax will be the same. There's no extra charge, it's 0% financing, assuming you qualify.

 

[Slicktype]

With Apple iPhone upgrade peogram, does it state anywhere regarding the "condition" of the phone upon exchanging it for a new device ?
Worst case scenario, exchanging a last gen iPhone that has a badly cracked screen, dents and scratches. Would they accept or deny ?
Just wondering here .....

 

[flur]

With Apple iPhone upgrade peogram, does it state anywhere regarding the "condition" of the phone upon exchanging it for a new device ?
Worst case scenario, exchanging a last gen iPhone that has a badly cracked screen, dents and scratches. Would they accept or deny ?
Just wondering here .....

No word yet. Here's where the legalese will be:
http://www.apple.com/legal/sales-support/iphoneupgrade_us/
Right now this just says coming soon.

 

[MUBiomed]

I potentially want to start using this program if the numbers are right but unless there is some new info before pre-order day, I hate to "waste" my pre-order only to show up in store and realize the program isn't all that great.

 

[randian]

I potentially want to start using this program if the numbers are right but unless there is some new info before pre-order day, I hate to "waste" my pre-order only to show up in store and realize the program isn't all that great.

What happens if you decide you don't like it. Do you pay nothing and walk away?

 

[MUBiomed]

What happens if you decide you don't like it. Do you pay nothing and walk away?

I don't know. I currently own my iPhone 6 outright and am not on contract with ATT. If they give you an unlocked version through Apple then you could move around carriers at will just by switching SIM cards.

I also wonder if you have two Applecare incidents per phone (i.e. every 12mo) or is it two Applecare incidents every 24mo (i.e spanning two different iPhones)?

 

[mr99]

I am on a 5 line family plan through AT&T currently. 2 lines are up for upgrades. What's the best path for me? I typically renew 2 year contracts when I upgrade and usually go through Apple.com and sell my last gen iPhone.

Does Apple's financing make sense? ATT next? Use ATT's site? I'm not sure NEXT makes much sense since my family plan price won't drop since it has subsidy's built in?

 

[Berzerker7]

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.

The Verizon 6/6+ work on Sprint as well. They whitelisted those IMEIs a few months ago.

It has nothing to do with CDMA on calls, it has to do with CDMA carrier's needing to whitelist IMEIs to activate on their network. It's just a BS policy difference.

 

[UPBaylor]

For the 128gb 6s, the monthly financing is $40.75.
http://www.apple.com/shop/iphone/iphone-upgrade-program

Financed cost: $40.75/mo x 24mos = $978
Full Price = $849 + $129 (AC+) = $978

Since they're the same cost, the tax will be the same. There's no extra charge, it's 0% financing, assuming you qualify.

So, at the end of 2 years with the Apple financing option you own the phone outright and can sell it if you like? I missed that little gem if so.

 

[nostresshere]

I was going to do this, but do NOT, repeat, do NOT want them pulling a credit report. Trying to keep my FICO high.

 

[andyw715]

2 things that suck about it right now.

1- it has to be activated on one of the four major carriers.

2- in store pick up only

 

[MICHAELSD]

With Apple iPhone upgrade peogram, does it state anywhere regarding the "condition" of the phone upon exchanging it for a new device ?
Worst case scenario, exchanging a last gen iPhone that has a badly cracked screen, dents and scratches. Would they accept or deny ?
Just wondering here .....

It includes AC+ so they would just charge you $99 to replace it if it's damaged.

 

[Apollonian]

I am on a 5 line family plan through AT&T currently. 2 lines are up for upgrades. What's the best path for me? I typically renew 2 year contracts when I upgrade and usually go through Apple.com and sell my last gen iPhone.

Does Apple's financing make sense? ATT next? Use ATT's site? I'm not sure NEXT makes much sense since my family plan price won't drop since it has subsidy's built in?

I'm in a very similar situation and I need to sit down and do some math. I will likely stick with my contract upgrades this cycle but as I said in another thread I see the contract options disappearing in the next cycle or two so I am trying to keep that in mind as well....

 

[xRYD3Rx]

This requires a credit check???????

 

[Appl3FTW]

^^ 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!!!!

Seems like a legit trade in program. And isn't AppleCare automatically included for the apple program?

 

[mac.cali]

I was going to do this, but do NOT, repeat, do NOT want them pulling a credit report. Trying to keep my FICO high.

If you're worried about a single inquiry, then is the credit high to begin with? Most with high scores don't mind using their credit if they know it will be high and benefit them in getting their goods.

As much as I would like to do this program, it being in store kills it for me. I don't want to deal with the crowds on launch day.

 

[xRYD3Rx]

If you're worried about a single inquiry, then is the credit high to begin with? Most with high scores don't mind using their credit if they know it will be high and benefit them in getting their goods.

As much as I would like to do this program, it being in store kills it for me. I don't want to deal with the crowds on launch day.

Well its not a big purchase such as an auto loan or house mortgage to have a credit checked. For some people it might not be worth getting a inquiry just for $700-1000 iPhone. I would instead just buy with a credit card and pay it off in 2-3 months.

 

[617aircav]

Well its not a big purchase such as an auto loan or house mortgage to have a credit checked. For some people it might not be worth getting a inquiry just for $700-1000 iPhone. I would instead just buy with a credit card and pay it off in 2-3 months.

Or just save up and buy it.

 

[mac.cali]

Well its not a big purchase such as an auto loan or house mortgage to have a credit checked. For some people it might not be worth getting a inquiry just for $700-1000 iPhone. I would instead just buy with a credit card and pay it off in 2-3 months.

Agreed. I plan on just buying at full price and sell my own device. If they made it where you can complete the transaction online, I'd be more tempted.

 

[960design]

My math says 12month option plus discount for next plan equals very big win; practically a free phone every year WITH AppleCare+!!

 

[mac.cali]

My math says 12month option plus discount for next plan equals very big win; practically a free phone every year WITH AppleCare+!!

How do you come up with a free phone? If people are upgrading yearly using this program, essentially you're leasing the phone. Once done you trade in for a newer model. You never really own the phone, but for most it doesn't matter since they are upgrading yearly.

 

[960design]

Agreed. I plan on just buying at full price and sell my own device. If they made it where you can complete the transaction online, I'd be more tempted.

I've done that everytime until now. I pay $40/month for AT&T line access, on the 12month NEXT I'll pay $15/month.

 

[960design]

How do you come up with a free phone? If people are upgrading yearly using this program, essentially you're leasing the phone. Once done you trade in for a newer model. You never really own the phone, but for most it doesn't matter since they are upgrading yearly.

Of course you are correct, I will have to return the old phone. Seeing that I have an original iPhone and every other one up to the 5s currently in my attic, I see no difference. I don't use the old phones, they just take up space. I should sell them, but... meh... too much effort.

 

[psylence2k]

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?

No, if you upgrade 12 months in when the next Iphone comes out, they just reset your whole loan and you start the whole 24 month cycle back again.

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?

I think you could easily sell your 1 year old Iphone for the same amount you would have a year left on the loan.

If you were able to do that you would be paying around the same as just alternating between upgrades and buying full price as long as you sell your old one every year for what you paid the year before after tax. You would essentially be spending right around the same amount just without a contract. If you were able to manage selling your phone for more than what the current upgrade price with tax then you would be spending less than you would going on the upgrade program. Upgrade program is where it's at if you dont want to pay all at once though.

^^ 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!!!!

If you're able to sell your old phone every year for $569 (which shouldn't be too hard) and alternate between upgrades and out right purchasing then it's pretty much the same as the upgrade program. If you're able to sell it for more than $569 then of course you would spending less than the upgrade program. Upgrade program is attractive though if you dont like paying all at once and dont like going through the "hassle" of selling your old phone.

So, at the end of 2 years with the Apple financing option you own the phone outright and can sell it if you like? I missed that little gem if so.

Yes as long as you didn't "upgrade" 1 year in to the last newest Iphone, if you keep the same phone for the full 24 months it is yours at the end.