Other iPhone Upgrade Programme and potential iPhone 12 delays

[Brookzy]

What's everyone's plans for the upgrade programme if the iPhone 12 is delayed as per some rumours, such as:

https://twitter.com/x/status/1242248066046050306

Now of course the cause of this delay was entirely unforeseeable, and this is one of the least important impacts of the current health crisis, but nonetheless...

As I understand it, the upgrade is allowed after 11 repayments, i.e. one year. But if you delay your upgrade for whatever reason, for example upgrading after 14 months, there appears to be no compensation for the extra repayments you have made.

(Granted, the value of your iPhone may have fallen slightly in those additional months.)

If the next iPhone retails in November, this means many iUP customers who were early adopters on the 11 will be penalised.

Additionally, if the 2021 iPhone reverts back to a standard September release, those who get the 12 won't have reached the 11 payment threshold yet.

Or am I missing something? If you're in this boat, what's your plan? Pay off the contract and start over? This sort of defeats the simplicity/hassle-free angle of the iUP.

 

[akash.nu]

I was thinking about this as well. Don’t have an answer but intrigued to see how it works out.

 

[AppleHaterLover]

How so? You still owe 12 payments when you upgrade after just a year. What should happen is that you’ll have just 10 payments left, will have paid a little more, and your installment will be a little less. Probably

 

[Brookzy]

How so? You still owe 12 payments when you upgrade after just a year. What should happen is that you’ll have just 10 payments left, will have paid a little more, and your installment will be a little less. Probably

Example for 256GB iPhone 11 Pro Max, depending on 2-4 month iPhone 12 delays:

1. Upgrade after 12 months. Effective value of your returned phone = 12 x 60.33 = $723.96.
2. Upgrade after 14 months. Effective value of your returned phone = 10 x 60.33 = $603.30
3. Upgrade after 16 months. Effective value of your returned phone = 8 x 60.33 = $482.64

The later you upgrade, the less attractive the deal - unless you make all the repayments and sell your phone privately.

 

[akash.nu]

Example for 256GB iPhone 11 Pro Max, depending on 2-4 month iPhone 12 delays:

1. Upgrade after 12 months. Effective value of your returned phone = 12 x 60.33 = $723.96.
2. Upgrade after 14 months. Effective value of your returned phone = 10 x 60.33 = $603.30
3. Upgrade after 16 months. Effective value of your returned phone = 8 x 60.33 = $482.64

The later you upgrade, the less attractive the deal - unless you make all the repayments and sell your phone privately.

Exactly this!

Also, if you’re like me who orders on the launch day then in the next release cycle you won’t be able to order because you wouldn’t have made 11 payments, assuming Apple goes back to normal schedule in the next cycle.

 

[Crazyj414]

Well. I just upgraded early to a pro max so I messed up my upgrade schedule but may work out for me in the end . I also did it partially due to the delay rumors.

 

[The-Real-Deal82]

I don't bother with the upgrade program as I feel I can get a better deal elsewhere. I will pre-order and get it when I get it I suppose. My 8+ isn't suddenly going to be unusable I don't think. With whats been going on this year I think a slight delay in getting a new phone is not a big deal for me.

 

[nrvna76]

Example for 256GB iPhone 11 Pro Max, depending on 2-4 month iPhone 12 delays:

1. Upgrade after 12 months. Effective value of your returned phone = 12 x 60.33 = $723.96.
2. Upgrade after 14 months. Effective value of your returned phone = 10 x 60.33 = $603.30
3. Upgrade after 16 months. Effective value of your returned phone = 8 x 60.33 = $482.64

The later you upgrade, the less attractive the deal - unless you make all the repayments and sell your phone privately.

I guess this is a risk we took when we signed up for the program. It may require some research for what the 11 series phones are selling for at the time, or I may need to consider not upgrading since I definitely do not "need" an upgrade, I just like to.

And, what will happen with the 2021 iPhones? If they get back to a September release schedule it will be less than 12 months for the 2020 upgraders...

 

[Phone Junky]

What's everyone's plans for the upgrade programme if the iPhone 12 is delayed as per some rumours, such as:

As I understand it, the upgrade is allowed after 11 repayments, i.e. one year. But if you delay your upgrade for whatever reason, for example upgrading after 14 months, there appears to be no compensation for the extra repayments you have made.

(Granted, the value of your iPhone may have fallen slightly in those additional months.)

If the next iPhone retails in November, this means many iUP customers who were early adopters on the 11 will be penalised.

Additionally, if the 2021 iPhone reverts back to a standard September release, those who get the 12 won't have reached the 11 payment threshold yet.

Or am I missing something? If you're in this boat, what's your plan? Pay off the contract and start over? This sort of defeats the simplicity/hassle-free angle of the iUP.

You are missing something. The IUP is a program to make it easy to use a phone for a year and get a new one without the hassle of selling or paying in full.

From the IUP page: "As a member of the iPhone Upgrade Program, you can get a new iPhone once you’ve made the equivalent of at least 12 payments."

It doesn't say get the latest iPhone as soon as it comes out, regardless of how many payments you've made. It doesn't take into account the iPhone release schedule. "New iPhone after 12 payments."

The idea that anyone in the IUP is being 'penalized' is wrong. You were not promised any specific timeframe for iPhone releases.

If getting the newest iPhone every year, as soon as it comes out, is your priority, then using on the IUP is a big mistake.

 

[goobot]

Correct me if I’m wrong but I remember the XS coming out a month earlier than the X. Does anyone know how that affect it?

 

[gadgetfreaky]

You are missing something. The IUP is a program to make it easy to use a phone for a year and get a new one without the hassle of selling or paying in full.

From the IUP page: "As a member of the iPhone Upgrade Program, you can get a new iPhone once you’ve made the equivalent of at least 12 payments."

It doesn't say get the latest iPhone as soon as it comes out, regardless of how many payments you've made. It doesn't take into account the iPhone release schedule. "New iPhone after 12 payments."

The idea that anyone in the IUP is being 'penalized' is wrong. You were not promised any specific timeframe for iPhone releases.

If getting the newest iPhone every year, as soon as it comes out, is your priority, then using on the IUP is a big mistake.

it's for iPhone users that upgrade every year- that's Apple's entire marketing message.

Here's the danger for apple- if they don't compensate people for the delay- it breaks the program and they lose people getting out of the habit of buying every year. Guaranteed they will compensate for ANY delay as long as you order.

 

[Phone Junky]

it's for iPhone users that upgrade every year- that's Apple's entire marketing message.

Absolutely. After 12 payments on your current phone. Apple says with IUP you can get a new iPhone every year. Nowhere do they say you can have the new iPhone on release day every year.
If you want the new iPhone every year and don’t want to pay for more than 12 months on your current one, get the new one a couple of months after release and you won’t run into the “extra payments” potential problem.

 

[gadgetfreaky]

Absolutely. After 12 payments on your current phone. Apple says with IUP you can get a new iPhone every year. Nowhere do they say you can have the new iPhone on release day every year.
If you want the new iPhone every year and don’t want to pay for more than 12 months on your current one, get the new one a couple of months after release and you won’t run into the “extra payments” potential problem.

marketing is training. You think Apple wants to train people to just skip a year?

If apple has a manufacturing delay- they will make some kinda of accommodation for 1up users. It also screws people up for the following year since they'd be 2 months short. There is absolutely no way they will not make a massive policy change to account for any delay to make sure their most lucrative customers don't "skip".

 

[nrvna76]

I don’t think that’s a guarantee at all.. I remember the second year of the program many IUP members couldn’t even order online.

Apple doesn’t owe us anything, but it definitely changed the equation a bit for making a personal determination on whether or not to trade in.

 

[The-Real-Deal82]

I don’t think that’s a guarantee at all.. I remember the second year of the program many IUP members couldn’t even order online.

Apple doesn’t owe us anything, but it definitely changed the equation a bit for making a personal determination on whether or not to trade in.

Apple should really prioritise those on the upgrade program I would say when contacting them for upgrade. Those people are effectively paying a big premium on a lease scheme and it shouldn’t be difficult to get a change of device.

 

[Phone Junky]

marketing is training. You think Apple wants to train people to just skip a year?

If apple has a manufacturing delay- they will make some kinda of accommodation for 1up users. It also screws people up for the following year since they'd be 2 months short. There is absolutely no way they will not make a massive policy change to account for any delay to make sure their most lucrative customers don't "skip".

Please show me where in Apple's marketing they are guaranteeing members of the program get the newest release, on launch day, without paying more than 12 months on their current phone and regardless of whether they made at least 12 payments on their current phone.

It's all about the ease of which it is to upgrade every year. It's right on their website.

"The easiest way to upgrade to the latest iPhone."
"You’re eligible to upgrade to a new iPhone once you’ve made 12 payments. Just trade in your current iPhone and start a new plan.3 It’s that easy."
"Easy to join. Simple to upgrade"

There's the word "easy" three times on the main page of the IUP program.

It's a pretty simple program to understand if you don't try to read into it something that's not there but you wish to be true.

Most people won't skip a year over something like this. Only the real tech geeks that need the latest and greatest NOW and want it on launch day with a payment program are troubled by this. . I assume a majority of people in this program would go with the terms they agreed to and forget about it until they were eligible for a new phone.

What percentage of iPhone users do you think even know when the new ones are released without it being in the news? Sure everybody on this forum does but we are a very tiny percentage of the iPhone user base. And based on the number of people that post in threads about these IUP concerns, (this isn't the first thread about this) it takes that tiny percentage and make it even smaller.

You say the IUP members are the "most lucrative". I'd say anybody plopping down $1k+ on a phone, regardless of how they purchase it, is pretty darn lucrative.

If Apple chooses to appease the people with concerns such as yours, if the situation arises, then they should consider themselves fortunate. If Apple doesn't, then they really don't have a reason to be upset, except for the made-up program terms in their head.

 

[gadgetfreaky]

Please show me where in Apple's marketing they are guaranteeing members of the program get the newest release, on launch day, without paying more than 12 months on their current phone and regardless of whether they made at least 12 payments on their current phone.

It's all about the ease of which it is to upgrade every year. It's right on their website.

"The easiest way to upgrade to the latest iPhone."
"You’re eligible to upgrade to a new iPhone once you’ve made 12 payments. Just trade in your current iPhone and start a new plan.3 It’s that easy."
"Easy to join. Simple to upgrade"

There's the word "easy" three times on the main page of the IUP program.

It's a pretty simple program to understand if you don't try to read into it something that's not there but you wish to be true.

Most people won't skip a year over something like this. Only the real tech geeks that need the latest and greatest NOW and want it on launch day with a payment program are troubled by this. . I assume a majority of people in this program would go with the terms they agreed to and forget about it until they were eligible for a new phone.

What percentage of iPhone users do you think even know when the new ones are released without it being in the news? Sure everybody on this forum does but we are a very tiny percentage of the iPhone user base. And based on the number of people that post in threads about these IUP concerns, (this isn't the first thread about this) it takes that tiny percentage and make it even smaller.

You say the IUP members are the "most lucrative". I'd say anybody plopping down $1k+ on a phone, regardless of how they purchase it, is pretty darn lucrative.

If Apple chooses to appease the people with concerns such as yours, if the situation arises, then they should consider themselves fortunate. If Apple doesn't, then they really don't have a reason to be upset, except for the made-up program terms in their head.

Easy yes- but it's not supposed to be an easy way to get an artificially low trade in value on their phone while simultaneously making them over pay for next years phone before its even release. In a global pandemic you think people won't do the math or question their purchases like never before?

Your thinking is suicidal for apple. People worried they might do what you suggest are silly since Apple is not suicidal. There is ZERO chance they do as you suggest.

 

[Phone Junky]

Easy yes- but it's not supposed to be an easy way to get an artificially low trade in value on their phone while simultaneously making them over pay for next years phone before its even release. In a global pandemic you think people won't do the math or question their purchases like never before?

Your thinking is suicidal for apple. People worried they might do what you suggest are silly since Apple is not suicidal. There is ZERO chance they do as you suggest.

There is no 'trade in value'. You are essentially leasing by the month with a minimum 12 month term to upgrade.

Suicidal? You make it sound like Apple's bottom line is highly reliant on keeping IUP customers happy at any cost. I think you're giving them too much priority. Apple sold craploads of iPhones before the program existed.

Apple doesn't 'owe' IUP customers any more than they do all their other customers.

On an additional note. If you are truly worried about getting the most value out of your iPhone while at the same time getting the latest and greatest when it's released, the IUP is NOT the way to go. It seems you're worried about an extra month or two payment on your 'old' iPhone (even though you're still using it). After a year, you've paid for half of the phone PLUS AppleCare. If you just buy the phone outright and sell it after a year (it's worth way more than half of what you paid), you pay far less than the IUP payments and you don't have to fret over when you got the last one and when the new one will be released. Something for those to keep in mind since they see a potential extra month or 2 payment on a phone they are still using as being 'penalized'.

 

[rui no onna]

Easy yes- but it's not supposed to be an easy way to get an artificially low trade in value on their phone while simultaneously making them over pay for next years phone before its even release. In a global pandemic you think people won't do the math or question their purchases like never before?

I seriously doubt this is as much of a dealbreaker as you think it is.

Those who can afford it will likely keep upgrading regardless of an extra payment or two. Those who need to make a drastic cut in expenses would likely forgo upgrading completely.

Personally, I use IUP when I buy to give me flexibility (predictable "trade-in" value, trade-in elsewhere, sell privately or pay off device) as I always get AC+ anyway. Thus far though, I've always just ended up paying off the loan and keeping the old device.

 

[akash.nu]

I seriously doubt this is as much of a dealbreaker as you think it is.

Those who can afford it will likely keep upgrading regardless of an extra payment or two. Those who need to make a drastic cut in expenses would likely forgo upgrading completely.

Personally, I use IUP when I buy to give me flexibility (predictable "trade-in" value, trade-in elsewhere, sell privately or pay off device) as I always get AC+ anyway. Thus far though, I've always just ended up paying off the loan and keeping the old device.

Agree with you. I just use IUP because I can’t be bothered to deal with people to try and sell my old phones where they ask thousands of questions about IMEI, lock code etc etc. I just don’t have the time or the energy for back and forth with a myriad of questions and answers and haggling with people.

 

[TechLord]

Thinking about it, I kinda regret not going for the IUP with this purchase. Since its 0% interest and you get apple care +, all you'd do is take the money you'd pay for it outright, set it aside, and you get the convenience of trading it in after 12 months if you wish, it just paying it off full and you've not lost anything extra. I'll probably do it in the future since it isn't any more expensive; apple stores were all closed when I brought this phone so I think it was impossible anyway.

 

[rui no onna]

Thinking about it, I kinda regret not going for the IUP with this purchase. Since its 0% interest and you get apple care +, all you'd do is take the money you'd pay for it outright, set it aside, and you get the convenience of trading it in after 12 months if you wish, it just paying it off full and you've not lost anything extra. I'll probably do it in the future since it isn't any more expensive;

Yep. If you're getting AC+ anyway, IUP just gives you more flexibility at no extra cost.

 

[gadgetfreaky]

There is no 'trade in value'. You are essentially leasing by the month with a minimum 12 month term to upgrade.

Suicidal? You make it sound like Apple's bottom line is highly reliant on keeping IUP customers happy at any cost. I think you're giving them too much priority. Apple sold craploads of iPhones before the program existed.

Apple doesn't 'owe' IUP customers any more than they do all their other customers.

On an additional note. If you are truly worried about getting the most value out of your iPhone while at the same time getting the latest and greatest when it's released, the IUP is NOT the way to go. It seems you're worried about an extra month or two payment on your 'old' iPhone (even though you're still using it). After a year, you've paid for half of the phone PLUS AppleCare. If you just buy the phone outright and sell it after a year (it's worth way more than half of what you paid), you pay far less than the IUP payments and you don't have to fret over when you got the last one and when the new one will be released. Something for those to keep in mind since they see a potential extra month or 2 payment on a phone they are still using as being 'penalized'.

Apple is dependent on the replacement cycle not getting too much longer. 1up started when the carriers stopped subsidizing phones and Apple wanted to keep the upgrade cycle. It's lengthened as tech has matured- they don't want to do anything to make it get longer.

I agree that if your only goal is maximizing cash- the 1up is not the way to go. But if it becomes egregious and those people are ineligible to buy for the next September launch- it becomes a deal breaker. And during a pandemic people care a lot more about cash then they did in the past. That's what I mean by suicidal for Apple and there is just no way they'd do this if there is a delay.

 

[nrvna76]

A lease implies you don’t own the phone. Which is incorrect. It’s a 0% payment plan with a trade in option, if you decide you can keep it, continue to make payments, or pay off the loan.

 

[Phone Junky]

A lease implies you don’t own the phone. Which is incorrect. It’s a 0% payment plan with a trade in option, if you decide you can keep it, continue to make payments, or pay off the loan.

You don't own the phone until all the payments are made. If you upgrade every 12 months, you never 'own' anything because you never pay anything off. You are essentially leasing at that point.