Question about iPhone Upgrade Program

[Baumer582]

Hi! I have a couple of questions about Apple's iPhone Upgrade Program that I'd rather ask here with people who are actually using it...

Using the iPhone 7 128 GB Verizon ($36.58 per 24 months) version as my example:

1. Once I pay the 12 payments, do I actually "own" the phone? Right now I'm on an older subsidized Verizon plan. I paid that $299 plus taxes and fees for my iPhone 6 in 2014, and only now do I own that phone after the contract ended... Using the Apple program, after 12 months and approx $439 in payments, that iPhone 7 would be mine outright? This is my understanding. I would just then trade the old phone in and then re-up with Verizon for another year and start the process over again. If that is true, it kinda seems like a no-brainer if you trade the phone right back for credit... Unless of course... You have to return the phone after a year...

2. For those who are in the program... Minus any fees associated with buying a subsidized phone, did your plan rate change at all since you used this program thru Apple? This is probably a stupid question, but I was just wondering what the bottom line is.. I'm assuming the consumer's only benefit is having the "option" to upgrade every year since they're not locked into a 2 year deal anymore, but as far as the plan goes, you don't actually save money month to month.


Thanks in advance!

 

[Bigserver1]

When you make the first 12 payments, you're eligible for the upgrade for the newest model. You only own the phone when you've made all 24 payments.

As far as your carrier goes, every carrier is different, but you'll typically pay less per month when you're bringing your own device. My rate through Verizon drops $20 per line now that I'm out of my contract and bringing my own device. That said, your mileage may vary depending on your provider, rate plan, and contract status.

Hope that helps.

 

[Baumer582]

When you make the first 12 payments, you're eligible for the upgrade for the newest model. You only own the phone when you've made all 24 payments.

As far as your carrier goes, every carrier is different, but you'll typically pay less per month when you're bringing your own device. My rate through Verizon drops $20 per line now that I'm out of my contract and bringing my own device. That said, your mileage may vary depending on your provider, rate plan, and contract status.

Hope that helps.

Innnnnnteresting. So after one year, what am I doing with that old phone? Lol.

If I pay the $36 per for the iPhone 7, then am eligible for the 2017 iPhone, will I be paying ANOTHER $36 per month for the newest phone, in addition to the second year's worth of iPhone 7 payments? Because that does NOT sound like a good deal...

Thanks!

 

[edlex]

Innnnnnteresting. So after one year, what am I doing with that old phone? Lol.

If I pay the $36 per for the iPhone 7, then am eligible for the 2017 iPhone, will I be paying ANOTHER $36 per month for the newest phone, in addition to the second year's worth of iPhone 7 payments? Because that does NOT sound like a good deal...

Thanks!

No you hand in your 7 and they terminate that loan. Then you set up a new 24 payment plan for the new one.

 

[Baumer582]

No you hand in your 7 and they terminate that loan. Then you set up a new 24 payment plan for the new one.

There we go..

So instead of $370 after taxes and fees of a subsidized price up front, it's $439 spread out over a year, but at least I get AppleCare and the option to upgrade to the next model. That doesn't sound too terrible

Thanks for the responses!