iUP vs buying outright.

Eggtastic

macrumors 6502a
Original poster
Jun 9, 2009
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I usually paid for my phones outright. Last one I got was the 6+, before the iUP was introduced.

It seems the iUP is a no brainer, but what is a negative about it? I mean owning a phone is nice because it is yours and you are free to sell it and re coup some of your losses. However the iUP can simply eliminate the hassle of selling and just simply upgrading.

Also, if I want to leave the iUP, can I just pay off the difference and buy another phone?

Thanks.
 

The Game 161

macrumors Core
Dec 15, 2010
19,411
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UK
I usually paid for my phones outright. Last one I got was the 6+, before the iUP was introduced.

It seems the iUP is a no brainer, but what is a negative about it? I mean owning a phone is nice because it is yours and you are free to sell it and re coup some of your losses. However the iUP can simply eliminate the hassle of selling and just simply upgrading.

Also, if I want to leave the iUP, can I just pay off the difference and buy another phone?

Thanks.
Yeah if you wanted you could just pay off the remaining balance and the phone is yours.
 
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akash.nu

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May 26, 2016
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There’s no negative other than the fact that if you decide to upgrade after the initial 12 months then you’d probably have got better price outside instead of handing the phone over to Apple.
 

KrisLord

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Sep 12, 2008
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Northumberland, UK
You’re paying for AppleCare+ with the IUP too, which isn’t something everyone wants. There’s the iPhone payment plan which doesn’t include it but also doesn’t include the annual upgrade option.

If you buy AppleCare+ anyway then I guess this isn’t a negative....
 

krishmk

macrumors 6502
Feb 11, 2010
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Knock on wood, I had no issues with 6 or 7 and I am careful with my phone. So IUP for me does not make sense.
 

Aibocyrus

macrumors 6502a
May 26, 2015
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I usually paid for my phones outright. Last one I got was the 6+, before the iUP was introduced.

It seems the iUP is a no brainer, but what is a negative about it? I mean owning a phone is nice because it is yours and you are free to sell it and re coup some of your losses. However the iUP can simply eliminate the hassle of selling and just simply upgrading.

Also, if I want to leave the iUP, can I just pay off the difference and buy another phone?

Thanks.
There seems to be this weird misconception that making payments on your phone means you do not own it.
Use this as an example. If you pay for a TV on a credit card, you make monthly payments to pay off the purchase of the television. But do you consider it yours once you bring it home? Yes.
Same concept. The phone is yours even if you’re making payments. You’re not renting the device. You’re just paying it off the same way you pay off a large purchase made on a credit card.
 

fs454

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Dec 7, 2007
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I like the upgrade program since I'm basically removing all the hassle of making sure I have the latest and greatest. I jumped on with the 7+ last year and will be continuing with the X.

For a few bucks more:
- AppleCare+ is included
- You don't need to case the phone or keep it in insane condition for some unknown next-of-kin owner
- You don't need to try and market your device on eBay, Craigslist, etc to get a decent price, worrying about sketchy buyers, eBay disputes, competing with thousands of other identical devices
- Seamless transfer to the new device - whereas you'd be selling, using a temp phone while you find a new one in stock, buying, swapping your stuff over, etc.
- You don't ever have device anxiety by keeping the device for two years unless you specifically make that choice at the end of the iUP year
- Apple seems to give some sort of priority to their upgrade program users come launch day
- No carriers are involved, at all, ever


I'd rather not fully own a device I know is going to take abuse, go everywhere, do everything and generally be the most used thing in my arsenal. Apple essentially is offering "Pay X per month, get a new phone when it comes out, and that's it" - and that's awesome. For $50 per month, I'm getting a 256GB iPhone X that will be back in Apple's hands pretty much right at the 12-month mark. That means $600 out of my pocket for the $1149 flagship phone with AppleCare+ and a completely seamless, no-sale-or-other-effort-required changeover to the new device next year.


These phones are meant to be used and appreciated. Throwing it into an ugly plastic case and/or having that anxiety all year mutes the experience for me.
 

Eggtastic

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Original poster
Jun 9, 2009
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NJ
I like the upgrade program since I'm basically removing all the hassle of making sure I have the latest and greatest. I jumped on with the 7+ last year and will be continuing with the X.

For a few bucks more:
- AppleCare+ is included
- You don't need to case the phone or keep it in insane condition for some unknown next-of-kin owner
- You don't need to try and market your device on eBay, Craigslist, etc to get a decent price, worrying about sketchy buyers, eBay disputes, competing with thousands of other identical devices
- Seamless transfer to the new device - whereas you'd be selling, using a temp phone while you find a new one in stock, buying, swapping your stuff over, etc.
- You don't ever have device anxiety by keeping the device for two years unless you specifically make that choice at the end of the iUP year
- Apple seems to give some sort of priority to their upgrade program users come launch day
- No carriers are involved, at all, ever


I'd rather not fully own a device I know is going to take abuse, go everywhere, do everything and generally be the most used thing in my arsenal. Apple essentially is offering "Pay X per month, get a new phone when it comes out, and that's it" - and that's awesome. For $50 per month, I'm getting a 256GB iPhone X that will be back in Apple's hands pretty much right at the 12-month mark. That means $600 out of my pocket for the $1149 flagship phone with AppleCare+ and a completely seamless, no-sale-or-other-effort-required changeover to the new device next year.


These phones are meant to be used and appreciated. Throwing it into an ugly plastic case and/or having that anxiety all year mutes the experience for me.
Well, those are some good points. Thanks for the clarification!
 

The Game 161

macrumors Core
Dec 15, 2010
19,411
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UK
Suppose least with IUP with apple care if you do damage it before you return it you can get it sorted without worrying about selling.
 

akash.nu

macrumors 604
May 26, 2016
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Knock on wood, I had no issues with 6 or 7 and I am careful with my phone. So IUP for me does not make sense.
Yep I’m the same but given the 8 onwards it’s literally all glass, I didn’t mind paying for it. Just that extra peace of mind.
 

Relentless Power

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Jul 12, 2016
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The phone is yours even if you’re making payments. You’re not renting the device. You’re just paying it off the same way you pay off a large purchase made on a credit card.
Not quite. Except with a phone under a contract, if you don't make the payments, the carrier can disable the service on the phone and ultimately render it unusable, because it's not your property, which explicitly states under the contract terms and obligations. It belongs to the carrier until it's paid off you were not free to do so what you want with it under the contract, until it's paid in full. So you do not technically own the phone.
 

Dormammu

macrumors 65816
There seems to be this weird misconception that making payments on your phone means you do not own it.
Use this as an example. If you pay for a TV on a credit card, you make monthly payments to pay off the purchase of the television. But do you consider it yours once you bring it home? Yes.
Same concept. The phone is yours even if you’re making payments. You’re not renting the device. You’re just paying it off the same way you pay off a large purchase made on a credit card.
I would disagree with this ...
 
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akash.nu

macrumors 604
May 26, 2016
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There seems to be this weird misconception that making payments on your phone means you do not own it.
Use this as an example. If you pay for a TV on a credit card, you make monthly payments to pay off the purchase of the television. But do you consider it yours once you bring it home? Yes.
Same concept. The phone is yours even if you’re making payments. You’re not renting the device. You’re just paying it off the same way you pay off a large purchase made on a credit card.
Even if you buy a TV with your credit card, the TV might be with you right then but technically if you’re unable to pay back then the credit card company will not just let you get away with it. Why’s it this such a hard concept to grasp?

The money you spend on credit card is not yours.
 

nrvna76

macrumors 6502a
Aug 4, 2010
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I like the upgrade program since I'm basically removing all the hassle of making sure I have the latest and greatest. I jumped on with the 7+ last year and will be continuing with the X.

For a few bucks more:
- AppleCare+ is included
- You don't need to case the phone or keep it in insane condition for some unknown next-of-kin owner
- You don't need to try and market your device on eBay, Craigslist, etc to get a decent price, worrying about sketchy buyers, eBay disputes, competing with thousands of other identical devices
- Seamless transfer to the new device - whereas you'd be selling, using a temp phone while you find a new one in stock, buying, swapping your stuff over, etc.
- You don't ever have device anxiety by keeping the device for two years unless you specifically make that choice at the end of the iUP year
- Apple seems to give some sort of priority to their upgrade program users come launch day
- No carriers are involved, at all, ever


I'd rather not fully own a device I know is going to take abuse, go everywhere, do everything and generally be the most used thing in my arsenal. Apple essentially is offering "Pay X per month, get a new phone when it comes out, and that's it" - and that's awesome. For $50 per month, I'm getting a 256GB iPhone X that will be back in Apple's hands pretty much right at the 12-month mark. That means $600 out of my pocket for the $1149 flagship phone with AppleCare+ and a completely seamless, no-sale-or-other-effort-required changeover to the new device next year.


These phones are meant to be used and appreciated. Throwing it into an ugly plastic case and/or having that anxiety all year mutes the experience for me.
This. However, if you’re looking for a negative. The yearly credit check and the payments being required to start on a credit card could be negatives. Oh, and the requirement of Apple care.

Even if you buy a TV with your credit card, the TV might be with you right then but technically if you’re unable to pay back then the credit card company will not just let you get away with it. Why’s it this such a hard concept to grasp?

The money you spend on credit card is not yours.
This is still called ownership, not a lease or anything else. This plan is owning the phone. Geez, every thread devolves into people talking down about financing or the notch..

If you go to BUY a car, most folks cannot purchase outright. They make payments. They still own the vehicle. This plan also gives you an out at the 12 month mark if you so choose to take it. You can still sell it at 12 months if you think you can make some money. I haven’t found the difference to be all that much.
 

KrisLord

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Sep 12, 2008
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Northumberland, UK
Even if you buy a TV with your credit card, the TV might be with you right then but technically if you’re unable to pay back then the credit card company will not just let you get away with it. Why’s it this such a hard concept to grasp?

The money you spend on credit card is not yours.
Secured vs unsecured finance is the difference.... and legal title of goods.....


Once you buy something on a credit card, you own it.

You’ve an unsecured debt that is not linked to any specific asset you own (so isn’t linked to what you bought)

If you don’t pay your credit card, then depending on which country we’re talking here, you can have items seized based on a court order. This could be any asset to clear the debt, not specifically what you bought with the credit card.

If you buy a car or home and use secured credit, then that asset is specifically tied to the debt.
 

Hal~9000

macrumors 68020
Sep 13, 2014
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1,715
It seems the iUP is a no brainer, but what is a negative about it?
Main negative for me is the fact that Applecare+ is mandatory on the iUP program when it should be optional.

Being forced to pay another $149/$199 on top of the already high prices of the 8 or X makes iUP pretty much a no-go for me from the start, especially since I take good care of my phones and my credit card (which I simply use to buy the phone and pay off the full balance that same month) doubles the manufacturer warranty for free.

Some people are already used to buying Applecare+ anyways which will make this a mute point for them. For myself though the idea of not giving your customers an option on whether they will buy an expensive extended warranty or not is purely a strong-arm cash grab by Apple which I refuse to participate in.
 
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ke-iron

macrumors 65816
Aug 14, 2014
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There seems to be this weird misconception that making payments on your phone means you do not own it.
Use this as an example. If you pay for a TV on a credit card, you make monthly payments to pay off the purchase of the television. But do you consider it yours once you bring it home? Yes.
Same concept. The phone is yours even if you’re making payments. You’re not renting the device. You’re just paying it off the same way you pay off a large purchase made on a credit card.
Your statement is incorrect, the tv scenario is borrowing money to purchase the tv, you borrow the full amount to make the purchase so it’s yours, then you then Pay the money back to the bank. The IUP program is paying for the phone it self monthly, not paying back money you borrowed to purchase the phone. In fact you did not purchase the phone at all. IUP program is more like leasing a car.
[doublepost=1508636439][/doublepost]
This. However, if you’re looking for a negative. The yearly credit check and the payments being required to start on a credit card could be negatives. Oh, and the requirement of Apple care.



This is still called ownership, not a lease or anything else. This plan is owning the phone. Geez, every thread devolves into people talking down about financing or the notch..

If you go to BUY a car, most folks cannot purchase outright. They make payments. They still own the vehicle. This plan also gives you an out at the 12 month mark if you so choose to take it. You can still sell it at 12 months if you think you can make some money. I haven’t found the difference to be all that much.
You are incorrect. If someone buys a car and does not purchase outright, they finance. A financed car is not owned by the purchaser, it is owned by the bank that financed the purchase. The bank pays the car company for the car, the bank is the lean holder and has the title to the car, the bank let’s you keep the car, you pay the bank biweekly or monthly, after you’re finished paying all payments the bank gives you the title, it is now yours.
 
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nrvna76

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Aug 4, 2010
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Your statement is incorrect, the tv scenario is borrowing money to purchase the tv, you then Pay the money back to the bank. The IUP program is paying for the phone it self monthly, not paying back money you borrowed to purchase the phone. In fact you did not purchase the phone at all. IUP program is more like leasing a car.
[doublepost=1508636439][/doublepost]

You are incorrect. If someone buys a car and does not purchase outright, they finance. A financed car is not owned by the purchaser, it is owned by the bank that financed the purchase.
Oh boy. You are quite simply. Wrong. Twice in a row in fact. The phone is not leased. You are not required to turn it back in at any point. You make payments to citizens bank, Apple just has a deal with them so you don’t have to go find a bank, you don’t make payments to Apple. They get their money right away.

Furthermore, when a car is purchased and financed the individual owns it, and there would be a lean on the title. They still own the car.

I get it. Some people don’t like it. So don’t do it, but don’t spread misinformation either. I do like it, so I will do it again. And, it appears this time that it may actually be an advantage, which is nice as it was clearly a disadvantage last time.
 
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OneMike

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Oct 19, 2005
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Forcing Apple Care is a big negative for me.

Beyond that. To each their own, but I don’t like the idea of financing phones or really anything for that matter.
 

ke-iron

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Aug 14, 2014
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Oh boy. You are quite simply. Wrong. Twice in a row in fact. The phone is not leased. You are not required to turn it back in at any point. You make payments to citizens bank, Apple just has a deal with them so you don’t have to go find a bank, you don’t make payments to Apple. They get their money right away.

Furthermore, when a car is purchased and financed the individual owns it, and there would be a lean on the title. They still own the car.

I get it. Some people don’t like it. So don’t do it, but don’t spread misinformation either. I do like it, so I will do it again. And, it appears this time that it may actually be an advantage, which is nice as it was clearly a disadvantage last time.
Apple deals with citizens bank because Apple themselves is not a bank so you cannot Pay Apple for the phone monthly. You pay for the phone monthly through the bank and after 12 months you can upgrade to the newer iPhone, however you must hand back in that current iPhone you are using. The only way you get to keep that iPhone through the IUP is if you pay it off completely. They do not call it a lease, but that is exactly how a lease car functions.

If your bank holds the title to your car, they own it. Who ever name is on the title for the car owns it. A financed car is not owned by the purchaser until they have paid the bank back for it, period.

You are wrong on both counts.
 
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Eggtastic

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Thanks for all the info. Seems to me on this thread (and the recent one involving anyone signing up for iUP) are on the fence with it. From what I gather, its a good deal minus being forced to take apple care. I've never had to use apple care because I baby my phone. Accidents happen, but for me i've been lucky so far.

I always bought my phone outright, but this iUP seems like a no-brainer. Compared to selling my old device to some stranger on CL (which is a hassle with low ball offers and meeting up and what not).
 

nrvna76

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Aug 4, 2010
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Apple deals with citizens bank because Apple themselves is not a bank so you cannot Pay Apple for the phone monthly. You pay for the phone monthly through the bank and after 12 months you can upgrade to the newer iPhone, however you must hand back in that current iPhone you are using. The only way you get to keep that iPhone through the IUP is if you pay it off completely. They do not call it a lease, but that is exactly how a lease car functions.

If your bank holds the title to your car, they own it. Who ever name is on the title for the car owns it. A financed car is not owned by the purchaser until they have paid the bank back for it, period.

You are wrong on both counts.
Welp. Clearly you do not know how a lease works because what you’ve just described is not it. And do you really believe that the bank lien on a title is the only name on that title?

Please don’t answer those questions because I no longer care to argue with you. Enjoy your day!
 

ke-iron

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Aug 14, 2014
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Welp. Clearly you do not know how a lease works because what you’ve just described is not it. And do you really believe that the bank lien on a title is the only name on that title?

Please don’t answer those questions because I no longer care to argue with you. Enjoy your day!
You ask me a question and then say don’t answer those questions, you must be really confused.

I have done it multiple times, and I’m on a financed car now. I know if I decide to stop paying this car note, the bank will repo the car. Do you know what a repoed car means? Well basically the bank sends a company to find and tow your car because you didn’t pay your bill, the bank sells the car and get back the money owed to them. They can sell the car because it’s theirs to sell.

As for a leased car, you pay the bank monthly for it, and at the end of your lease you turn in the car and pay for excess mileage etc if any, you may have an option to buy or finance the car depending on the type of lease.

The IUP. You go to Apple to purchase the phone, you pay the bank monthly for it, at the end of 1 year you have the option to hand in that phone and upgrade to the new phone or continue to pay for that phone up to 2 years and it’s yours to keep.

The point is the phone is not yours unless it is paid for in full. They don’t call it a lease but it functions very similar to a lease. It isn’t yours until it is paid for in full. Like I said similar to a leased car, it isn’t yours unless it is paid for in full. Or a financed car, it isn’t yours unless it is paid for in full.

When you actually have credit, buy or lease a car you would have a better understanding of how these things work.
 
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akash.nu

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May 26, 2016
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Main negative for me is the fact that Applecare+ is mandatory on the iUP program when it should be optional.

Being forced to pay another $149/$199 on top of the already high prices of the 8 or X makes iUP pretty much a no-go for me from the start, especially since I take good care of my phones and my credit card (which I simply use to buy the phone and pay off the full balance that same month) doubles the manufacturer warranty for free.

Some people are already used to buying Applecare+ anyways which will make this a mute point for them. For myself though the idea of not giving your customers an option on whether they will buy an expensive extended warranty or not is purely a strong-arm cash grab by Apple which I refuse to participate in.
The logic for the mandatory Apple care + is to ensure that you don’t bring in a broken phone after a year and expect Apple to take it back for your upgrade. You see what I’m saying there? Without Apple care + the user is likely to get third party repairs on the device as well which Apple might not get time to check thoroughly while upgrading next year. This way it’s just straightforward and the chances of users going to third party is less because they’ve already paid to Apple.
 

akash.nu

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May 26, 2016
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Thanks for all the info. Seems to me on this thread (and the recent one involving anyone signing up for iUP) are on the fence with it. From what I gather, its a good deal minus being forced to take apple care. I've never had to use apple care because I baby my phone. Accidents happen, but for me i've been lucky so far.

I always bought my phone outright, but this iUP seems like a no-brainer. Compared to selling my old device to some stranger on CL (which is a hassle with low ball offers and meeting up and what not).
This is exactly why I got it this year.