'Apple Upgrade' Program Reportedly Launching Next Week

[rumz]

Anyone think we’ll see a price hike on the current iPhone lineup with this new program? Or are we pretty confident Apple will hold prices until September? I definitely see this move— especially the options for iPads and Macs— being a way to try to make these more expensive devices seem more “affordable”.

 

[mrochester]

“You will own nothing and you will be happy.”

That doesn’t apply here as these are buy to own plans, not a lease.

The above only applies to things you pay for that you don’t then get to keep when you stop paying, such as streaming music and tv services and software like adobe photoshop.

Apple is very incentivised to make it as easy as possible for you to buy and keep using an iPhone. They make money selling you the hardware, and then they continue making money selling you services on your iPhone.

If they simply offered a lease it would be easier for consumers to switch to other products

 

[Shirasaki]

Corporate does it all the time.

Also, YOU'RE NOT FORCED TO DO IT.

Yeah ok what you said is plausible today. But corporations are also good at nudging people into the option they want: leasing out devices instead of selling them. By the time they make buying outright incredibly difficult, are you going to say they are “not forced you to do it” when all it means is just technicality? Are you happy to pay $100/mo to borrow an iPhone for 5 years instead of buying it outright for $6000? I say this from personal user perspective, not business perspective.

 

[lilbits]

"Hey everyone! Check out my $6000 iPhone!"

 

[applefella]

It disgusts me that I read the words "soft credit check" in this article.

No, I will own my device the moment it is in my hands, thank you very much. I'll have my finances in order *before* I buy my devices, thank you very much. There will be no "credit check." I will buy it in full, and with passion and anger!

I'll also buy a fake pearl necklace and proceed to clutch said fake pearls in an overly dramatic way!

What madness is this? If it were a house or a car, I would understand, as those are arguably necessities in some areas, but financing a *cell phone* with a credit check? A *device*?

Talking about data centers is one thing, but now you want to talk to loan sharks?!

You're pushing expensive products into a market and you're not sure they'll actually work?! Vision pro?! Hello?!

And then you're surprised at charging over price and some people can't pay?!

Going into debt for a cell phone is not reasonable!

A credit check for a device?! What?!

This article is making me lose my marbles! Or my fake pearls! I'm not sure which!

I will rant off into the distance! Good day to you, sir!!

 

[MrGunny94]

I ain't planning to use this unless they give some discounts

 

[SpanishAppleNerd]

I hope we get this in Europe. Coincidentally I was thinking about getting a leasing deal from my bank when upgrading my 14 Pro Max to an XX next year.
Plus, also iPads and Macs...

 

[bookcase]

I've been part of the iPhone Upgrade Program for years, so I'm still not clear on how this will affect me.

 

[DrJR]

A great way to get (or keep) people paying for things they can't afford and probably shouldn't be buying.


But hey ... “number must go up”, right?

That’s the important thing here.

There used to be laws against predatory lending.

 

[DrJR]

If you have to finance a phone, you can’t afford it. This is predatory lending.

 

[clg82]

Here is some advice: if you need to finance a new phone or computer buy a refurbished unit and save some money. I usually keep Apple computers at least four years and the phone three years at minimum. I am seriously considering just replacing the battery in my iPhone 15 Pro and use it for another 1-2 years. I think the battery replacement cost is $99 which is significantly cheaper than a new phone.

This is the right way of thinking, unfortunately not so common any more these days...

 

[iMac The Knife]

24-36 month financing for an iPhone or an iPad...🤣 I guarantee you at least 7 out of 10 people who say "I can easily afford to buy my iPhone's or iPad's in cash, but I prefer to make this money work for me since I'm financing at 0%" (if you even get that deal w/ Klarna here) are saddled in debt, have very little liquid assets, and probably have about $10-20,000 in their 401k/Savings at most. Whatever you have to do to reassure yourself I guess. I'm really sure you're going to parlay the massive funds from your 0% interest loan for an iPhone or an iPad into some crazy whale like gains! 😂 Besides, even if you make a few hundred dollars off investing that money instead, is it really worth having to get a hard pull on your credit and be beholden to a bank/financing company for 2-3 years? I don't think so. I have enough money to buy my foldables and other phones in cash, and guess what? That's exactly what I do. 🙂

 

[QuarterSwede]

24-36 month financing for an iPhone or an iPad...🤣 I guarantee you at least 7 out of 10 people who say "I can easily afford to buy my iPhone's or iPad's in cash, but I prefer to make this money work for me since I'm financing at 0%" (if you even get that deal w/ Klarna here) are saddled in debt, have very little liquid assets, and probably have about $10-20,000 in their 401k/Savings at most. Whatever you have to do to reassure yourself I guess. I'm really sure you're going to parlay the massive funds from your 0% interest loan for an iPhone or an iPad into some crazy whale like gains! 😂 Besides, even if you make a few hundred dollars off investing that money instead, is it really worth having to get a hard pull on your credit and be beholden to a bank/financing company for 2-3 years? I don't think so. I have enough money to buy my foldables and other phones in cash, and guess what? That's exactly what I do. 🙂

1) Some people do make their money work for them, that’s exactly how the rich use their assets.
2) You’re right, it’s just not a lot of people.
3) You guarantee 7/10 say … but left zero data to back that up.
3) Not everyone is you.

Simply put, you’re make a load of assumptions.

 

[Kriss_De_Valnor]

Sad state of the West. An another loan to buy a... mobile phone. In 2026.

More debts more debts more debts more debts more debts more debts and one day we will implode.

We need to restart our civilization. Seriously.

 

[iMac The Knife]

1) Some people do make their money work for them, that’s exactly how the rich use their assets.
2) You’re right, it’s just not a lot of people.
3) You guarantee 7/10 say … but left zero data to back that up.
3) Not everyone is you.

Simply put, you’re make a load of assumptions.

Some people? Who specifically? And what was done with the massive gains (kidding) and was it worth being locked into a contract and taking the credit hit? I don't do this, and neither do any of the people I know who have plenty of money. None of them do this for tech gadgets. I realize this is a small sample size, but it is still telling. Now, financing a five million dollar house at 4-5% over 30 years, back when you could do this, that's a no brainer. For tech gadgets, it's not worth the credit hit and getting into a financing contract. I could do the research on my 7/10 claim, but no one would be honest on the internet anyway. Trust me, that figure is very close to the reality here.

 

[ProbablyDylan]

So basically we're leasing computers now.

You already (apparently) don't own the software. Why should you own the hardware?

 

[Biro]

That doesn’t apply here as these are buy to own plans, not a lease.

The above only applies to things you pay for that you don’t then get to keep when you stop paying, such as streaming music and tv services and software like adobe photoshop.

Apple is very incentivised to make it as easy as possible for you to buy and keep using an iPhone. They make money selling you the hardware, and then they continue making money selling you services on your iPhone.

If they simply offered a lease it would be easier for consumers to switch to other products

A summary of the same Gurman report that I read elsewhere indicated a lease will be one of the options.

 

[Detnator]

Details are even more depressing (to me).


Apple plans to advertise the program as a way to have lower payments versus current financing programs. The company is planning to discontinue new enrollments for its current iPhone payment programs — the iPhone Upgrade Program and standard financing — to make way for the Apple Upgrade initiative.

Unlike the iPhone Upgrade Program of today, Apple Upgrade doesn’t include AppleCare.

I suspect this has a lot to do with AppleCare One (ACO), and if so it’s a great call.

Much better value to add a new device to existing ACO than to require AC+ in the (financed) purchase. I’ll be surprised if AC+ isn’t an option in the financed purchase for those who don’t have or want ACO.

 

[Detnator]

Guys -- they don't offer financing schemes to not make money off them (0% financing)

It’s a fair comment, generally speaking, but not absolute.

The iPhone Upgrade Program has been 0%. Most carrier financing is 0%.

In both cases the company is foregoing the interest (and loss of their capital) but make more than enough money back from the services that go with it.

For the carrier, it’s the phone line and sometimes a few extras. For Apple it’s iCloud, AppleTV, etc.

The services are the high margin sales they wouldn’t otherwise get. That’s effectively their “interest”.

 

[Detnator]

Paying for use is NOT equivalent to what you claim. Your argument is similar to the false argument people make about leasing a vehicle, where it is somehow noble to pay more per month to “own” a no longer under warranty depreciating asset that is upside down the minute you drive away rather than only paying depreciation and interest when leasing.

If your business use case involves the need for new equipment every few years, it seems this program may be considered a lease, or at minimum, you are paying only for the depreciation and interest, which are then deductible.

It will be interesting to see how this is structured for accounting purposes compared to buying on an Apple Card with interest free payments. It may be more beneficial for some tax situations as at the end of 2-3 years you own nothing rather than having paid more monthly to own a depreciated asset that you must then try to sell or trade and account for.

You’re right on all points.

For any significantly depreciating “asset”, it has a temporary lifespan - especially tech hardware more so than things like cars - so by definition you’re “using” it, for a time, until its usability, and value, decrease to near zero. So this is all simply about the most financially sound way to pay for that usage. So then it just comes down to the value in what you do with the money you’re not paying up front (invest it, whatever), vs what you lose by not paying up front (interest, if any). It bothers me how so few people understand this.

Additionally… One thing with the Apple Card option: Even at 0%, it hits your credit utilization, affecting your credit report and score much more significantly than these separate finance programs that are effectively a new “loan” added to your report.

Revolving vs Installment credit.

 

[Alexrat1996]

I've been part of the iPhone Upgrade Program for years, so I'm still not clear on how this will affect me.

I think it will still work because we owe money I paid 12 months already

 

[unkl bob]

They have a lease program for businesses. You pay monthly and switch it out every few years and it comes with AppleCare+

Edit: https://www.apple.com/shop/finance/business-financing

$4999 seemed quite high for a base MBP so...
Just looked it up Base 16" MBP is $2999. Not $4999.

 

[Alexrat1996]

Presumably, they continue paying until the cycle ends and the device becomes theirs, at least that is my assumption.

My guess we can still upgrade in September or higher the price of installment so we can keep them and switch idk

 

[Mobius77]

I am not sure why people so much issue with lease something.
Lease car and computer or phone is same. It depends what you prefer at the end.
If you don't want to deal with maintenance of car then lease is better off. At least within 3 years there is no major maintenance needed other then oil change(even this some auto maker free for 2 years or 20,000 miles. This normally 2-3 oil changes.).
Yeah, you can own it but unless you pay in cash up front, you are not much saving either. You car loan has interest. And most of case, you need to keep the car over 9 years to save some money compare to every 3 years lease the car.

I trade in my iPhone, iPad, Mac every 2 to 3 years.
Why do you want keep use older than 3 years of tech?
If new lease program ended up 2 years total 55-60% of Apple price then I think it is worth to look at.
Apple trade in value normally 40-45% after 2 years.

There is not much reason buying computer over $2,000. Unless you are in professional job that making money with it.

 

[Ethrem]

is it really worth having to get a hard pull on your credit

Hard pulls mean nothing in the grand scheme of things. After a certain point you don't even take a score hit from them anymore (ask me how many accounts I opened in a year to know that) and before that it's like 5-10 points, a blip on the radar that's largely inconsequential.

The only time people should be worried about hard pulls is if they're buying a house or financing a car in the next year since those scores are more sensitive to credit seeking than FICO 8, 9, and 10 are. For everyone else, finances over FICO.