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The iPhone Upgrade Program is being replaced by Apple Upgrade

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Re: The iPhone Upgrade Program is being replaced by Apple Upgrade

#11

Post by smith7018 »

iscoelho wrote: post #7
viccis wrote: post #4

They're switching to a lease model. Almost certainly because of the cost of components, but also in their interests to continue the "you'll own nothing" trend. They're even using Klarna as the leasing provider.

The Apple Upgrade lease model isn't even a replacement as you have to wait 24 months before upgrading. The entire point of the iPhone Upgrade Program was to make it painless to swap to the newest iPhone every year. Without that, there's no value proposition.

They have 12 month options for the Apple Upgrade program. I just checked how much it would cost to get an iPhone 17 PM + AppleCare+ with theft protection like I currently get from the IUP and it's $3 more a month.

Re: The iPhone Upgrade Program is being replaced by Apple Upgrade

#12

Post by iscoelho »

smith7018 wrote: post #11
iscoelho wrote: post #7

Earlier quoted context omitted.

The Apple Upgrade lease model isn't even a replacement as you have to wait 24 months before upgrading. The entire point of the iPhone Upgrade Program was to make it painless to swap to the newest iPhone every year. Without that, there's no value proposition.

They have 12 month options for the Apple Upgrade program. I just checked how much it would cost to get an iPhone 17 PM + AppleCare+ with theft protection like I currently get from the IUP and it's $3 more a month.

I stand corrected! This doesn't look too bad then.

Re: The iPhone Upgrade Program is being replaced by Apple Upgrade

#13

Post by applfanboysbgon »

paxys wrote: post #8

Replaced by a lease program - https://www.apple.com/shop/apple-upgrade Pay $32/mo (so $770 total) to use an iPhone for two years and then give it back to Apple. This is truly the most dystopian timeline.

The most dystopian thing about this timeline is how completely normalised corporate propaganda is.

> While our customers have loved the iPhone Upgrade Program, we’re always looking for ways to give them more flexibility, better value, and a more seamless experience.

If I were malicious dictator for life, there would be a special section in my gulags for the people who write copy that entails telling customers it's raining while pissing on them.

Re: The iPhone Upgrade Program is being replaced by Apple Upgrade

#14

Post by acmnrs »

The iPhone Upgrade Program was a 24-month 0% financing program for iPhones. The replacement Apple Upgradehttps://www.apple.com/shop/apple-upgrade> is a leasing program that also covers iPads, Macs, and Apple Watches.

Instead of automatically owning the device after making all payments, you can choose return/upgrade/buy it at the end of the lease. The new program is backed by Klarna instead of Citizens Bank, uses a soft credit check, and no longer includes AppleCare+ by default.

The fact that the page is not particularly clear about any of this should tell you everything you need to know about this change.

Re: The iPhone Upgrade Program is being replaced by Apple Upgrade

#16

Post by xp84 »

Seems like a good place to also mourn the canonical best iPhone financing method - the blissfully simple Apple Card payment plan. They got rid of it[1] (except if you're engaging in the postpaid carrier contract foolishness) in 2023, which coincidentally was the last time I felt the need to get a new iPhone.

I know a lot of people use postpaid, but I can't understand why. I'd challenge anyone to justify that decision, given that the phone "deals" are rarely even much of a subsidy as opposed to a financing scheme that acts as a contract, and the plans cost about triple what I pay every month, for fewer features and equivalent at best priority and speeds.

[1] https://9to5mac.com/2023/06/15/apple-card-financing-sim-free...

Re: The iPhone Upgrade Program is being replaced by Apple Upgrade

#17

Post by wxw »

> To make way for Apple Upgrade — a new experience that offers more products and terms that work for you — we’re saying goodbye to the iPhone Upgrade Program.

https://www.apple.com/shop/apple-upgrade

It looks like this leasing program is just moving into a more generic/Apple-wide offering... not sure if the fine print changes.

[edit: from the comments, it sounds like the difference is it was previously 0% interest financing and no longer is]

Re: The iPhone Upgrade Program is being replaced by Apple Upgrade

#18

Post by r0fl »

Leasing isn’t “I can’t afford to buy it.” It’s about capital allocation.

Why would I tie up $1,200 upfront in a device that’s going to be obsolete in a couple of years when I can spread the cost over time, preserve cash flow, and (if it’s a legitimate business expense) deduct the lease payments?

Keeping $1,200 in my business earning a return is often worth more than prepaying for a depreciating asset.

People happily lease $80,000 vehicles for exactly these reasons. Applying the same logic to a $1,200 phone isn’t irrational, just the same financing decision at a much smaller scale.

Re: The iPhone Upgrade Program is being replaced by Apple Upgrade

#19

Post by bdcravens »

acmnrs wrote: post #14

The iPhone Upgrade Program was a 24-month 0% financing program for iPhones. The replacement Apple Upgrade https://www.apple.com/shop/apple-upgrade > is a leasing program that also covers iPads, Macs, and Apple Watches. Instead of automatically owning the device after making all payments, you can choose return/upgrade/buy it at the end of the lease. The new program is backed by Klarna instead of Citizens Bank, uses a…

Additionally, the loan program was administered by Citizens Bank, not Apple.

Re: The iPhone Upgrade Program is being replaced by Apple Upgrade

#20

Post by tamimio »

So this new one seems like hardware-as-a-service subscription, the hardware is basically rented out, and since everything is linked to apple account it’s easier to lock it remotely if you don’t pay that month. They are probably planning to increase the prices and are introducing this model so it looks less of a payment method, except you don’t even own it.
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