Warning About Apple Upgrade Program

[DoofenshmirtzEI]

You don't pay all of the tax upfront on T-Mobile's Jump on Demand program, rather, you pay tax on whatever that month's payment is. The way this particular T-Mobile program is structured must fall under a different tax code.

JOD is a lease, not a financed purchase. You own nothing when you are on JOD.

 

[yillbs]

All you are doing is financing the phone through their little crappy bank over in ca. you pay the taxes because technically you purchased the phone. All apple is doing is saying, we'll continue to finance the new phone if you give us the old one back, we'll give you the " credit " towards the new phone, thus, constantly making money. However, they did it this way so they could collect on sales volume guys. The more phones they basically " lease " which, i call it that because that's what it is, glorified leasing, so the more phones they sell through this product, the more " sales " and revenue they can claim. Remember, you're not financing the phone through apple, so apple sold you the phone, and gets to count the FULL phones revenue , even though you'll never pay it off. it's ingenious, and i pity the fools that fell for it.

 

[DoofenshmirtzEI]

All you are doing is financing the phone through their little crappy bank over in ca. you pay the taxes because technically you purchased the phone. All apple is doing is saying, we'll continue to finance the new phone if you give us the old one back, we'll give you the " credit " towards the new phone, thus, constantly making money. However, they did it this way so they could collect on sales volume guys. The more phones they basically " lease " which, i call it that because that's what it is, glorified leasing, so the more phones they sell through this product, the more " sales " and revenue they can claim. Remember, you're not financing the phone through apple, so apple sold you the phone, and gets to count the FULL phones revenue , even though you'll never pay it off. it's ingenious, and i pity the fools that fell for it.

When they take the phone in trade, they have to pay off the balance on the loan. That counts against revenue. Net, they are only making in revenue what the buyer makes in payments. You also don't have to trade in the phone, you can keep it and continue making the payments. If I wanted Apple Care, I would probably go this route (and not trade in the phone). I don't want Apple Care, so I am on AT&T's Next program, which also has a trade in option (which I will not take).

If someone wants to buy the phone every year, they can, and Apple will still get the sales numbers and revenue. Even better, they have no outstanding obligations about taking the phone back at the end of the year. The money here is in the value of the traded in phones. You can make more money not trading it in, but there's a lot of people who don't want to deal with the hassle and risk of selling on their own, and the carriers and Apple (and places like Gazelle) are taking a cut out of the value of the trade in for assuming that hassle and risk themselves. If they make more sales because there is untapped demand among people who don't want to deal with disposing of the phone after one year, well, more power to them. Damn them for making money by giving people what they want.

Edit: I should point out that Apple makes less in revenue with AUP, because it is 0% financing, they have to pay sugar to the financing bank.

 

[Anand953]

It's pretty simple.. This program is OK if you have deep pockets and also like to have the latest iPhone year on year.. Period..

Personally, my pockets aren't deep as yet.. So not interested ..

 

[Bryan Bowler]

I believe T-Mobile's Jump program is considered a lease instead of a financed purchase. At the end of the 18 months, you don't actually own anything.

Yes, you are correct -- it's a lease. However, you can pay $164 at the end of the lease and then the phone belongs to you. Or if you want, you can pay off the entire lease at any point you want, even if you're just a month or two in. When all is said and done, you pay $125 less than paying the normal retail price for an iPhone.

 

[Bryan Bowler]

JOD is a lease, not a financed purchase. You own nothing when you are on JOD.

Your statement is correct. However, it should be noted that you can pay off the lease anytime you want, whether it's at Month 1 or Month 18, and then the phone will be unlocked and it belongs to you.

While the fact that you're on a lease is correct, from a functional/real-world standpoint, it is really no different than the other options since you can pay it off at any time you want and then the phone is yours. However, what is different is with T-Mobile's current limited time promotion, if you choose to pay off the lease and make the phone your own, the cost of the iPhone is $125 less than the retail price.

 

[nrvna76]

I do wish I had decent T-Mobile service in my area. I would be on the JOD plan rather than apples upgrade program.

 

[predation]

Travel to a state with no sales tax and buy it there. Lol

 

[tdar]

Edit: I should point out that Apple makes less in revenue with AUP, because it is 0% financing, they have to pay sugar to the financing bank.

No they don't. When you buy a $849.00 iPhone at ATT, do you think ATT pays Apple $849 for that phone? Now how might that apply when selling lots of phones to a bank?

 

[zhenya]

I really dislike when people state their opinions as fact.

AppleCare isn't pointless. To YOU it might be but for people like myself, it's not. I have only ever had it twice. Once on my first 3G iPhone and now on my first iPhone 6S Plus. I got it for the Plus because I don't use cases or screen protectors and with the larger size, there might be a chance of me dropping it and damaging it. I wan't insurance against that so if I do, it get's replaced for a small fee. YAY!

Not everyone uses a case.

So your fact is nothing more than your opinion. The fact here is AppleCare + covers ALL accidental damage for a small fee. Everything is covered except for intentional damage. Plus an extra year of warranty if I decide to keep the phone or give it to a family member. If I sell it, it's a plus for the buyer.

Win win all around. You can go ahead and keep that great looking phone wrapped in plastic, rubber and glass and not enjoy it's true beauty.

I will keep mine free so I can enjoy it as it was made to be. 😀

Someone here posted a really good breakdown as to the potential cost/benefit of AppleCare. In short, you'd have to use the replacement policy at least twice to come out ahead vs. just paying out of pocket. In most circumstances buying AppleCare is significantly more expensive than paying out of pocket, and in those where it's not, it's only slightly more expensive to pay out of pocket.

 

[DoofenshmirtzEI]

No they don't. When you buy a $849.00 iPhone at ATT, do you think ATT pays Apple $849 for that phone? Now how might that apply when selling lots of phones to a bank?

The comparison was the Apple AUP versus buying the phone outright from Apple. Apple certainly makes less money when someone uses the AUP than they do if Apple sold them the phone full retail.

 

[Warbrain]

Wait, this is a surprise? A warning? I thought people had common sense and understood these things.