Apple Card Carrier required for Apple Card financing on iPhone starting in August

[hamstation]

Starting August 15, 2023, carrier connection with AT&T, T‑Mobile, or Verizon is required for all iPhone purchases made with ACMI. Starting August 15, 2023, the ACMI installment term for new Apple Watch purchases will change from 24 months to 12 months.

Can some explain in details what does this mean?
I many years trade in and buy latest iphone UNLOCKED from apple.com with monthly installments.
I am with ATT I just swap esim from current iphone to new iphone?

However am I correct starting on Aug 15th I must order an ATT model with a certain ATT number?

Meaning that number has do be an upgradable line?

I will add example hope I have this all wrong.

I have three ATT lines, and all 3 have iphones on them and I am paying monthly installments to APPLE for all 3.

Say 6 months in i decide I want a dif iphone on one of the three lines.

My take NOW I have to pay OFF that iphone on apples installment plan BEFORE I can buy another phone?

Hope not confusing all this.
Thanks
Jeff

 

[Clamjuice65]

I think in August they stopping the interest free financing for unlock phones using the apple card . The only way now to get that interest free financing is picking a carrier now. I won’t be doing that I will continue to buy unlocked outright . I’ll use my Amex or something

 

[compwiz1202]

If anything in my life has 0% interest, doesn’t have an insane term limit, and is convenient for me then I’m probably going to do it ha.

Now if you got an iPhone with 0% interest but for 8yrs and no option to pay it off early then nah.

Yea that last sentence is the point. I don't care if the term is long as long as I can pay it off early

 

[VineRider]

The way I interpret this, is that from Aug 15th on, you will not be able to select the option of "connect to any carrier later" when using ACMI. You will be required to select a carrier (AT&T, Verizon, or T-Mobile). This means you will need an active line with one of those carriers and will need to enter your carrier details when finalizing the purchase.

When you receive the new phone, it will be already configured with an ESIM that will activate on the line you selected when you purchased the phone.

The phone will still be unlocked - Per Apples website:

Will you get an unlocked iPhone?​

When you purchase an iPhone at Apple, you’ll receive an unlocked model that you can use with any carrier. The only exception is if you purchase an iPhone through AT&T Installment Plans — you will receive a locked model.


So, as long as you don't select an AT&T installment plan, you phone will be unlocked, even if you select a carrier on the ACMI payment plan. The available payment options are ACMI, Apple Iphone Payments, AT&T Installment Plan, Verizon Installment Plan, and T-Mobile Installment Plan. Only the AT&T Installment Plan locks the phone to a carrier.

Regarding paying off before you get another phone, I could not find anywhere that it is stated that you must pay off the phone if you upgrade before the phone is paid off. My opinion is that you would not be required to do that, as the payment plan is via Apple, and not your carrier and as long as you keep making the payments on the old phone you are ok. You would simply finance another phone and carry out the payment on the old phone until it's paid off. Again, this is my assumption based on what i read in the terms and conditions for ACMI.

If you finance through a carrier, then yes, you must pay off the phone before you can get a new phone on that particular line.

 

[hamstation]

You will be required to select a carrier (AT&T, Verizon, or T-Mobile). This means you will need an active line with one of those carriers and will need to enter your carrier details when finalizing the purchase.

So your thinking is even though my line says has a att carrier fianced phone my current line I can still order with ACMI using that SAME line? Apple will send new iphone with esim for that number and once i turn it on the new phone will be ON and OLD phone will be OFF att network?

That may work ok.

 

[VineRider]

You will be required to select a carrier (AT&T, Verizon, or T-Mobile). This means you will need an active line with one of those carriers and will need to enter your carrier details when finalizing the purchase.

So your thinking is even though my line says has a att carrier fianced phone my current line I can still order with ACMI using that SAME line? Apple will send new iphone with esim for that number and once i turn it on the new phone will be ON and OLD phone will be OFF att network?

That may work ok.

I am not sure how this would work replacing a phone that is financed on AT&T with a phone that is financed on ACMI and connected to AT&T. OP was asking about a phone that was originally financed with ACMI.

My assumption is that it would be as you state, and that the carrier financed payments with AT&T will continue on your AT&T bill until that agreement is paid off.

 

[bondr006]

I always pay in full. If someone can’t do that with an iPhone, they probably shouldn't be buying.

If someone can't afford to pay outright for the iPhone they want, said person should consider buying an iPhone within their budget.

I didn't back Apple. I simply stated pay the amount owed in full.

Griping because Apple didn't continue a perk they didn't owe anyone in the first place is nothing but entitlement mentality.

I pay full price for my iPhones at Amazon (usually discounted) with my Amazon Prime CC that gives me 5% cash back and then pay off the CC. Instant discount and no interest.

So many angry people here.

 

[FreakinEurekan]

The adage that rang true for me was, “The longer you have your money, the longer you make interest on it. The longer they have your money, the longer they’ll make interest on it.”

Sure maybe buying an iPhone up front for $1500 isn’t a big deal, but assuming your a person that does this means your probably also paying your water bill 15 days early, paying your car insurance in one year chunks, etc. meaning it’s not just the $1500 iPhone money you’re losing out on 4% savings account interest, it’s your entire life.

If there’s a 0% plan to pay for something, it’s wise to use it, because saving your pennies is how you cultivate wealth, not by cashing your paycheck and stashing it under the mattress.

The devil’s in the details.

Suppose you’re buying something that can be had for $1,000 with zero-percent interest. Or, you can buy it for $850 but have to put it on an interest-bearing credit card, on which you can only afford to pay off $75/mo. Which option gives you the lower overall price? Obviously the answer depends on the interest rate, but very likely you’re better off to take the discount.

The ads that bother me are the car companies, with “Zero-percent interest *or* $xxxx cash back!” 🧐 Seems to me, whatever I’m not getting in cash-back is effectively, what I’m paying in “Interest”

 

[monstermash]

Problem not solved. You would then pay interest on the purchase unless you pay the entire balance off at once.

So pay the balance off at once.

 

[monstermash]

It’s better financially to take the money you’d pay for the phone and put it in high yield savings and let it grow rather than spend it on a depreciating iPhone. Especially since this used to be a 0% interest loan essentially.

People chase pennies while throwing dollars out the window.

 

[BigMcGuire]

0% interest is really cool. If there is a 0% interest offer, or close to, I'll take it.

What is amazing to me are those Affirm and like services that try to get people to sign up for ~26-29% interest "loans" - the fact that these companies are multiplying tells me a LOT of people are signing up for this.

I have some CCs from the 2000s that still have 13% interest today. I notice today (looking at some CC offers) that today CCs offer 26-29%. Wtf? These banks/CCs are making a killing.

I just checked my Apple CC - 26.99% - WOW. (We pay this off every month and have for the years we've had it). Didn't realize.

Freaky.

 

[macsound1]

The devil’s in the details.

Suppose you’re buying something that can be had for $1,000 with zero-percent interest. Or, you can buy it for $850 but have to put it on an interest-bearing credit card, on which you can only afford to pay off $75/mo. Which option gives you the lower overall price? Obviously the answer depends on the interest rate, but very likely you’re better off to take the discount.

The ads that bother me are the car companies, with “Zero-percent interest *or* $xxxx cash back!” 🧐 Seems to me, whatever I’m not getting in cash-back is effectively, what I’m paying in “Interest”

I'm only speaking about payments that have no interest, like purchasing devices through your carrier, paying utility bills, etc.

 

[monstermash]

So, that is what I ordered on 9/9/22.

Going forward, such an order wouldn't be allowed. I'd have to pick a major carrier, which would NOT lock the phone to that carrier, or buy without Apple's 0% plan.

As it so happens, I DO have a Verizon line for work on my phone, but it was a hassle to set up. My personal line is on US Mobile.

From what I can tell, even if I ordered a "Verizon" phone, it would still be UNLOCKED and I could still set it up with a U.S. Mobile line.

I don't see an issue here.

 

[chrfr]

From what I can tell, even if I ordered a "Verizon" phone, it would still be UNLOCKED and I could still set it up with a U.S. Mobile line.

I don't see an issue here.

Not everyone who wants to use the Apple Card installment plan uses one of the 3 cell providers Apple has partnered with. A buyer who wants to take advantage of the installment plan needs to have either an AT&T, T-Mobile, or Verizon line, or has to sign up for one and pay the activation fees.

 

[monstermash]

Not everyone who wants to use the Apple Card installment plan uses one of the 3 cell providers Apple has partnered with. A buyer who wants to take advantage of the installment plan needs to have either an AT&T, T-Mobile, or Verizon line, or has to sign up for one and pay the activation fees.

I understand.

But that isn't an issue for me, as explained in the post you quoted.

 

[chrfr]

I understand.

But that isn't an issue for me, as explained in the post you quoted.

Right, but you said you didn’t see the issue, so I was illustrating when it is an issue for some people.

 

[monstermash]

Right, but you said you didn’t see the issue, so I was illustrating when it is an issue for some people.

I said I didn't see an issue. I didn't say that others shouldn't see an issue either.