IUP a scheme to sell AppleCare?

[Freezer001]

I know I can’t be the only one to believe that Apple’s main motivation for the program is to sell more protection plans.

It’s pretty much a well disguised scheme hiding behind letting customers “upgrade” more frequently if they choose.

I wouldn’t feel this way if, however, it was optional to have AppleCare included in the IUP program. For this reason, I have always chosen ATT NEXT instead...

Let’s hear everyone’s opinion...

 

[Ntombi]

Funnily enough, I wanted to switch to IUP from AT&T Next, partially because of AppleCare Plus. I decided not to risk the wait, so I stuck with Next for another year.

I generally don’t buy AppleCare Plus, but it seemed smart this year.

BTW, I only wanted it folded into my payments because I didn’t want to have to go through the hassle of getting the prorated refund next year.

 

[KrisLord]

They offer the iPhone payment plan without AppleCare so whilst it’s a factor I don’t think that’s the primary purpose of the IUP.

I think the primary purpose is to be less reliant on the networks for new handset sales.

Prior to the plan if you didn’t want to buy outright, you had to go via the networks which were pushing to reduce subsidies.

This way Apple can maintain more control their business.

 

[Technarchy]

All insurance is ultimately a “scheme” of sorts.

 

[Freezer001]

They offer the iPhone payment plan without AppleCare so whilst it’s a factor I don’t think that’s the primary purpose of the IUP.

I think the primary purpose is to be less reliant on the networks for new handset sales.

Prior to the plan if you didn’t want to buy outright, you had to go via the networks which were pushing to reduce subsidies.

This way Apple can maintain more control their business.

Hmmmm, while checking out for a new phone, there are 3 options.

1). Buy phone through IUP with AppleCare.
2). ATT next (AppleCare optional).
3). Buy phone outright (AppleCare optional).

Please let me know of this other IUP plan with optional AppleCare. I was also told at the Apple Store that the IUP is “baked in” and not optional...

 

[Knightcastle]

Hmmmm, while checking out for a new phone, there are 3 options.

1). Buy phone through IUP with AppleCare.
2). ATT next (AppleCare optional).
3.). Buy phone outright (AppleCare optional).

Please let me know of this other IUP plan with optional AppleCare. I was also told at the Apple Store that the IUP is “baked in” and not optional...

The Apple care is baked in to ensure the units they receive back at point of Upgrade next year are in decent condition or they have been otherwise compensated for those that aren’t.

You can do iPhone Payments if you don’t want Apple Care

 

[Freezer001]

The Apple care is baked in to ensure the units they receive back at point of Upgrade next year are in decent condition or they have been otherwise compensated for those that aren’t.

You can do iPhone Payments if you don’t want Apple Care

Could you screenshot this option? I am not seeing it anywhere. I thought I had seen this before, as others have mentioned, but I can’t find it..
[doublepost=1510484176][/doublepost]I see “Apple Payments” as an option that doesn’t include AppleCare. This doesn’t allow an upgrade after 6 months and 12 payments.

However, as I noted in my OP, the IUP program requires AppleCare and is not optional.

Why isn’t an upgrade available if your phone is in good shape and free of any significant damage?

My point still stands about IUP being a vehicle for more insurance sales.

 

[Knightcastle]

Could you screenshot this option? I am not seeing it anywhere. I thought I had seen this before, as others have mentioned, but I can’t find it..
[doublepost=1510484176][/doublepost]I see “Apple Payments” as an option that doesn’t include AppleCare. This doesn’t allow an upgrade after 6 months and 12 payments.

However, as I noted in my OP, the IUP program requires AppleCare and is not optional.

Why isn’t an upgrade available if your phone is in good shape and free of any significant damage?

My point still stands about IUP being a vehicle for more insurance sales.

It is available, you just have to combine Payments with the Trade In options.

IUP assumes the phone is in tradeable condition due to the insurance, with this other method you are responsible for its condition yourself.

 

[Freezer001]

It is available, you just have to combine Payments with the Trade In options.

IUP assumes the phone is in tradeable condition due to the insurance, with this other method you are responsible for its condition yourself.

Not available according to this:

 

[KrisLord]

Here’s a payments link.

It’s simply the cost less the deposit, split over 20 months (IUP is 20 months in the UK too)

https://www.apple.com/uk/shop/iphone/payments/overlay

 

[Knightcastle]

Not available according to this:

Yes because “Upgrade” is only available when the product you are upgrading is insured.

Do payments. Look after your phone. “Apple payments” does not “upgrade” you but the phone is yours to trade in, pay off, and buy new (outright or with more payments)

Apple Payments is a payment plan.
Apple Upgrade Programme is an Upgrade Programme.

Simple as that.

 

[Freezer001]

Why does it need to be insured? If the device is in acceptable condition, why does it matter?

Why isn’t the 6 months and 12 payments to upgrade available without AppleCare if you’re doing the Apple Iphone payments program?

Of course you can pay off the device and upgrade. That’s not what the topic is about. Next, for example, allows you to upgrade after a certain percentage of the device is paid off. Only difference in total cost is the AppleCare price. You’re effectively pigeonholed into buying AppleCare.

Again, referring back to my OP, the IUP program requires AppleCare. Apple knows, just like any other retailer, selling service plans or extended warranties are a huge moneymaker and most consumers rarely use or need them.

 

[KrisLord]

There’s a scheme with and without AppleCare. If it was purely about selling AppleCare the scheme without it wouldn’t exist at all.

Apple make the terms of the scheme with AppleCare slightly better than the scheme without it, but that’s not enough to say the whole thing is aimed at selling AppleCare - the whole thing is about selling more iPhones.

 

[tromboneaholic]

I don’t know about other countries, but in the US the Apple online store has Barclays Card as an option for interest-free payements.

A friend of mine bought his iPad Pro in a physical Apple Store like that.

It doesn’t require Apple Care+

 

[ReallyBigFeet]

I’ve assumed that the IUP program requires AC+ to ensure that the phone you trade in is in good working order. Because I’ve further assumed these trade ins aren’t heading to the recycling plant but instead get sold to some secondary market.

Might be flawed assumptions on my part. But I know IUP and the carrier trade in programs also seems to have had an impact on number of last years’ phones available on eBay/CL as so many are going straight back to the sellers.

 

[mcdj]

I certainly think forcing Apple care with iup is part of a plot to separate us from our money.

But AT&T charges their ridiculous activation fee; Apple doesn’t. Also Apple’s “AT&T” phone is usable on any GSM network with a local SIM card. AT&T makes you spend international roaming fees. So I go with Apple.

 

[mrochester]

I certainly think forcing Apple care with iup is part of a plot to separate us from our money.

But AT&T charges their ridiculous activation fee; Apple doesn’t. Also Apple’s “AT&T” phone is usable on any GSM network with a local SIM card. AT&T makes you spend international roaming fees. So I go with Apple.

Of course it’s a plot to separate you from your money, Apple is a business!

 

[Mlrollin91]

Why does it need to be insured? If the device is in acceptable condition, why does it matter?

Why isn’t the 6 months and 12 payments to upgrade available without AppleCare if you’re doing the Apple Iphone payments program?

Of course you can pay off the device and upgrade. That’s not what the topic is about. Next, for example, allows you to upgrade after a certain percentage of the device is paid off. Only difference in total cost is the AppleCare price. You’re effectively pigeonholed into buying AppleCare.

Again, referring back to my OP, the IUP program requires AppleCare. Apple knows, just like any other retailer, selling service plans or extended warranties are a huge moneymaker and most consumers rarely use or need them.

You are failing to get the big picture here.

You need AppleCare Plus for the trade-in plan because you are trading in the device. Its an insurance policy incase you damage your phone before trade in, so you can get it fixed. This is not an Apple requirement, its a bank requirement. Its no different than a house or a car, if you are taking out a loan, you need to have insurance on it, especially when you expect the bank to forgive half the loan on trade in.

The reason why the Apple Payment plan doesn't require AC+ is because you cannot have the balance of your loan forgiven by trading in. You can trade in for current market value, but which is usually $100-200 less than what you get on IUP trade in.

This has absolutely nothing to do with Apple making money. It's the bank protecting themselves. There is no way a bank is going to give out a loan that you will be trading in for loan forgiveness without protecting the device.

Edit: an additional reason that came to me. You can upgrade the iPhone any time after 6 months and before 24 months. Thus, if you decided to upgrade at 14 months (like everyone who got the X this year) your phone would have been out of warranty for 2 months. Thus, even if you had a defect that would be covered under warranty, you would be required to pay the OOW fee in order to utilize your trade-in. In reality, this protects consumers and the bank. Has nothing to do with Apple.

 

[mcdj]

Of course it’s a plot to separate you from your money, Apple is a business!

Oh I get it now! It’s a PROFIT DEAL!

Thanks professor.

My (obviously not obviously sarcastic) first comment wasn’t the main point anyway.

It’s about the cost and restrictions that come with dealing with AT$T.

 

[aneftp]

I know I can’t be the only one to believe that Apple’s main motivation for the program is to sell more protection plans.

It’s pretty much a well disguised scheme hiding behind letting customers “upgrade” more frequently if they choose.

I wouldn’t feel this way if, however, it was optional to have AppleCare included in the IUP program. For this reason, I have always chosen ATT NEXT instead...

Let’s hear everyone’s opinion...

Att next is a scam (if u are constantly trading it in every 12 months). I still
Do att next but pay it off within 1 month so I’m eligible for another att next promo That’s the only reason I would use att next. For promo. But if u are buying att next with no promo (I just
Got $300 sams gift card iPhone yesterday). Got lg g5 $5/month x24 month promo early this year.

Those are reason to do att next.

 

[mcdj]

Here’s what don’t understand about IUP.

Why a bank? The carriers don’t make you deal with a bank. They send you a bill.

Apple is certainly capable of sending a monthly bill. I get one every month for iCloud storage and a yearly one for iTunes Match.

 

[Mlrollin91]

Here’s what don’t understand about IUP.

Why a bank? The carriers don’t make you deal with a bank. They send you a bill.

Apple is certainly capable of sending a monthly bill. I get one every month for iCloud storage and a yearly one for iTunes Match.

Because Apple has no way to enforce it. Banks do, via credit reporting. AT&T does, via credit reporting.

Thus, if Apple gave you the loan, as they are not a bank. They cannot tie it to your credit and no one would ever pay the bill.

 

[Knightcastle]

Because Apple has no way to enforce it. Banks do, via credit reporting. AT&T does, via credit reporting.

Thus, if Apple gave you the loan, as they are not a bank. They cannot tie it to your credit and no one would ever pay the bill.

Apple could of course take the necessary steps to become a credit provider but this would be some hassle to do worldwide, and when you’re not even charging interest what is the point?

 

[Freezer001]

You are failing to get the big picture here.

You need AppleCare Plus for the trade-in plan because you are trading in the device. Its an insurance policy incase you damage your phone before trade in, so you can get it fixed. This is not an Apple requirement, its a bank requirement. Its no different than a house or a car, if you are taking out a loan, you need to have insurance on it, especially when you expect the bank to forgive half the loan on trade in.

The reason why the Apple Payment plan doesn't require AC+ is because you cannot have the balance of your loan forgiven by trading in. You can trade in for current market value, but which is usually $100-200 less than what you get on IUP trade in.

Not failing to see anything here buddy.

The same thing applies on the Next program. You trade in your device after a certain % is paid off and you’re eligible for a new device. ATT makes money off you by you trading it in and you losing the money you’ve already paid towards your device, however, you weren’t required to buy AppleCare.

Furthermore, Apple could certainly implement an Apple Iphone payments plan without AppleCare. They simply choose not to for reasons I’ve already stated.

 

[Knightcastle]

What do you want from this thread?

Yes, it’s all a big scam. You’ve rumbled them. Kudos.