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The problem with leasing a computer for 3 years is at the end of the 3 years you are stuck with two options: pay the balloon payment at the end and then own it, or start a new computer "rental". Neither is a very good thing for someone that money is that tight that they had to lease in the first place.
Agree, and it also causes problems for ownership.

Example:

Cool, I can rent a MacBook Pro 16 inch for three years and pay at total of just short of 2k but if I can’t cough up the extra 1k at the end to own it I of course have to give it back.

2k gone and you’ve got nothing to show for it at the end.

However playing devils advocate.

If you have an extreme work load and like to upgrade your laptop every 3 years you are getting a good deal because each Mac will cost less overall but that only works if you continue to keep upgrading after 3 years.

Leases can be dangerous but if people can take them out responsibly, I guess it’s nice to have another option.
 
Agree, and it also causes problems for ownership.

Example:

Cool, I can rent a MacBook Pro 16 inch for three years and pay at total of just short of 2k but if I can’t cough up the extra 1k at the end to own it I of course have to give it back.

2k gone and you’ve got nothing to show for it at the end.

However playing devils advocate.

If you have an extreme work load and like to upgrade your laptop every 3 years you are getting a good deal because each Mac will cost less overall but that only works if you continue to keep upgrading after 3 years.

Leases can be dangerous but if people can take them out responsibly, I guess it’s nice to have another option.
$2k over 3 years is $666 per year (Woz would approve.)

My M1 was $1,100 (incl tax) in June 2021 ... it's now past June 2026. That's five years. $1,100 / 5 = $220/year. That's 1/3 the cost of the $2k over 3 years example.
 
Agree, and it also causes problems for ownership.

Example:

Cool, I can rent a MacBook Pro 16 inch for three years and pay at total of just short of 2k but if I can’t cough up the extra 1k at the end to own it I of course have to give it back.

2k gone and you’ve got nothing to show for it at the end.

However playing devils advocate.

If you have an extreme work load and like to upgrade your laptop every 3 years you are getting a good deal because each Mac will cost less overall but that only works if you continue to keep upgrading after 3 years.

Leases can be dangerous but if people can take them out responsibly, I guess it’s nice to have another option.
I disagree that there is nothing to show for the lease at the end. The lease provides an opportunity to use the device for a period of time, and there is value in that (say $55/month). Also, the residual value of the device is more than the market value of the device at the end. With products that become obsolete quickly, there is less value in owning them outright long-term. Remember that this is an "upgrade program" for people who want to use the latest and greatest, not a "rent-to-own program," although it could be used that way too.
 
I disagree that there is nothing to show for the lease at the end. The lease provides an opportunity to use the device for a period of time, and there is value in that (say $55/month). Also, the residual value of the device is more than the market value of the device at the end. With products that become obsolete quickly, there is less value in owning them outright long-term. Remember that this is an "upgrade program" for people who want to use the latest and greatest, not a "rent-to-own program," although it could be used that way too.
Yes, I realised that when I checked again.

It’s sneaky that Apple didn’t mention that in the official video.

I bet Apple are just hoping that if people see the purchase fee at the end plus all monthly payments costs more than the device at original retail value.

Then they’ll just take the upgrade and stay locked in.

So it only really works if you are happy to stay in the upgrade cycle forever.
 
Well, price increases doesn't really mean people won't make a purchase. There's reason for the price increases because of it.
 
My child is starting college in 2 weeks - I bought a Starlight M5 MacBook Air 13" 1TB / 24GB / 10-core GPU from Costco for $1299 back in May on sale. I knew there might be supply chain issues seeing what was happening with the mac mini, so I didn't want to take any chances waiting for Apple's back to school sale. Glad I didn't.

Amazon had the same price at the same time, but I preferred buy from Costco:

 
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Complaints about price increases throughout the internet, yet the numbers are telling a different story. Difficult to blame companies at this point for taking advantage of the laws of economics.

Why would they not raise their prices if people aren't voting with their wallets?
Who said the shortage was due to overwhelming demand? Apple never discloses units sold, so they could just be not getting new inventory from factories so inventory is running low while at the same time, demand is low also. Other retailers have plenty of stock.
 
Oh there's no question. I'm into my 15" M5 MBA 24/1TB for $950 🤩

I recently got a new protective sleeve, as I need to take care of it more than ever now.
Thats the one thing i regret with my base M5 Air, I should have paid the slight extra and got the 24 GB model. Anyway the base model should be good enough for me for the next 5 years or so.

Also instead of buying on credit, try to use options like Amazon 5 Monthly payment plan, you just need to make sure you have the cash in your account to pay for the full price on initial purchase, but then they split it into 5 monthly payments. If you miss a payment though, they can take the full amount which your bank is obliged to pay (and then pass fines on to you). I do this with all my Apple devices on Amazon UK, not issues whatsoever.
 
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The problem with leasing a computer for 3 years is at the end of the 3 years you are stuck with two options: pay the balloon payment at the end and then own it, or start a new computer "rental". Neither is a very good thing for someone that money is that tight that they had to lease in the first place.
This is the same way the car leasing business has worked for decades.

But the Apple Upgrade program is fundamentally different as you're not paying any interest, financing or money-factor fees.

Aside from just general 'time value of money' scenarios, the Apple Upgrade program can make a lot of sense for a large chunk of the population. And if you're looking into a $30/month MacBook Air via the Apple Upgrade program, I doubt time-value-of-money is a concern that is driving your decisions :🙂
 
Glad I spec’d my M4 MBA with 32gb/1Tb as I doubt I’ll be upgrading any time soon at this rate. The world’s gone mad.

Really feels like people who got in before the ai price bump knew what’s coming and got a relative steal

Always counting my blessings I made a similar move like a month or even couple weeks before things went crazy. Coupled with a steep sale price
 
This strategy is unfortunately impractical in most cases when you want to buy a residence, despite being arguably the most important purchase you will ever make in your life.
I wasn’t talking about buying a residence. I was talking about buying a MacBook which is the topic of this thread.
 
I'm sure we will have to agree to disagree on this one, but I think leasing a MacBook Air for three years is absolutely bonkers. This is how it all starts. $25 a month here, $50 a month there...and before you know it some people will be underwater and they will default. Trust me, it is coming. I do understand that no one is forcing anyone to lease a computer or phone. But still, leasing a computer for three years is insane to me.
It’s interest free and the exact same amount of money, except you don’t have to put up the full purchase amount on day one.

How, exactly, is this insane?
 
It’s interest free and the exact same amount of money, except you don’t have to put up the full purchase amount on day one.

How, exactly, is this insane?
Because by leasing it you are beholden to a financing company for a certain amount of time, you take a hit to your credit (albeit a small one), and you own nothing when it's all said and done, unless you buy it at the end of the term. All this over a freaking MacBook Air. Yeah, that is insane.
 
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Because by leasing it you are beholden to a financing company for a certain amount of time
Being "beholden" is what you have to do to get an unsecured, interest-free loan for the $1200+ price of the laptop. What are you advocating, that Apple Upgrade customers just be handed $1200 with no strings attached?

you own nothing when it's all said and done.

This is flatly wrong, and you know it.

At the end of the term you pay the balance and own the MacBook for the EXACT SAME AMOUNT you would have had to pay up front. There is ZERO extra cost.

And if you can't afford to pay the balance, then you return the machine and you got a three-year rental for 2/3 of the purchase price. And if you are in the tiny group that can't afford the balance payment when it comes, then you almost certainly couldn't have afforded the full purchase price on day one.
 
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This is flatly wrong, and you know it.

At the end of the term you pay the balance and own the MacBook for the EXACT SAME AMOUNT you would have had to pay up front. There is ZERO extra cost.

And if you can't afford to pay the balance, then you return the machine and you got a three-year rental for 2/3 of the purchase price. And if you are in the tiny group that can't afford the balance payment, then you almost certainly couldn't have afforded the full purchase price on day one.
If you lease it, you own nothing when it's all said and done. If you decide to pay the remaining balance at the end of the term then yes, you would own it at that point. I updated my post for clarity. However, my point still stands. You're leasing a low-end laptop, in the realm of laptop computers, and that is insane. If you can't afford it, save up for one and then buy it. It's better than getting into a legally binding leasing contract and being beholden to some scumbag financing company, all over a laptop.
 
Without the sales figures, the supposition in the article is entirely speculative. It's just as possible there are long lead times because they aren't prioritizing Air production to allocate RAM to higher-priced SKUs, for example.
 
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