Other RIP iUP

[lazyrighteye]

I've been enrolled in iUP for several years now (yeah yeah, it's clearly not for everyone - move along). My birthday falls at the end of Sept., and I've really enjoyed a fun, nerdy "happy birthday to me" moment with a fresh iPhone every year. The low monthly payments + fully covered device (one reason I never uses cases) + ease of swapping every Sept. has been a seamless experience for me. My fav. time of year.

Insert Apple Upgrade. While I always felt the program would expand to include other hardware, I did not expect it to change in the ways it has. On initial scan, I am not liking what I am reading; the lease aspect, Klarna, lack of bundled Apple Care, etc. But as one who swaps every year, maybe it's not that different. How are other long-time iUPers feeling about Apple Upgrade?

 

[webkit]

You can still get a new low monthly payment iPhone every year by choosing the 12 month Apple Upgrade lease option. At the end of the 12 months, you could then return the phone and get a new one on another 12 month lease (assuming program still exists). Although AppleCare+ is not included, you can still get it for a monthly or yearly fee.

Using 256GB iPhone 17 Pro as an example, the monthly lease payment would be $45.99 (at 0% APR) and AppleCare+ with Theft and Loss would be $13.99/month or $139.99/year.

 

[eltoslightfoot]

Why would anyone use this program? $45.99 x 12 = $551.88 + AppleCare T&L of $139.99 = $691.87!!!! How is that low?

Even if you forego the AppleCare part: I bought an iPhone 17e for $599 - which is dang near what the lease price you listed is for one year.

 

[webkit]

Why would anyone use this program? $45.99 x 12 = $551.88 + AppleCare T&L of $139.99 = $691.87!!!! How is that low?

"Low" relative to paying the full $1,238.99 ($1,099 + $139.99) upfront. It's not a bad option if someone truly wants to get a new iPhone every year and is ok with continuous monthly payments. Additionally, the lease offers some protection if the iPhone market crashes (as unlikely as that might be) as you can just turn it in after the term is up. It also gives you the option to buy at lease end and potentially make extra money if the phone holds its value better than expected.

Even if you forego the AppleCare part: I bought an iPhone 17e for $599 - which is dang near what the lease price you listed is for one year.

Not really an apples to apples comparison as the 17e is a much cheaper phone. If someone only wanted a 17e, they could get it through the Apple Upgrade program for as little as $24.99/month for 12 month lease or $299.88 total.

You are paying nothing extra to lease through the Upgrade program, and are getting 0% APR for lease term.

 

[eltoslightfoot]

"Low" relative to paying the full $1,238.99 ($1,099 + $139.99) upfront. It's not a bad option if someone truly wants to get a new iPhone every year and is ok with continuous monthly payments. Additionally, the lease offers some protection if the iPhone market crashes (as unlikely as that might be) as you can just turn it in after the term is up. It also gives you the option to buy at lease end and potentially make extra money if the phone holds its value better than expected.




Not really an apples to apples comparison as the 17e is a much cheaper phone. If someone only wanted a 17e, they could get it through the Apple Upgrade program for as little as $24.99/month for 12 month lease or $299.88 total.

You are paying nothing extra to lease through the Upgrade program, and are getting 0% APR for lease term.

Except that it is never paid off, correct? If it is, then that is a different story.

 

[AlterZgo]

Except that it is never paid off, correct? If it is, then that is a different story.

They call it a lease but you get full credit for what you made in lease payments if you decide to buy the phone so it effectively acts like a zero percent interest loan.

iphone upgrade program or this new lease deal works for people like me who buy a new iphone every year and don't want to deal with the hassle of selling a phone every year. Before this program I would be too lazy to sell the old phone and it would just sit in my drawer (this is before Apple started taking trade ins).

Now it's so easy to make money in high yield savings accounts or in equities, there's no point to ever turn down zero percent interest loans (which is effectively what this lease deal gives you). Why tie up $1300-$2000 dollars of your money when you can just make $50 to $80 monthly payments and let your cash sit in investments?

 

[webkit]

Except that it is never paid off, correct? If it is, then that is a different story.

If you choose to get a new phone every year and never buy the existing one at lease end then it's never paid off but you are only paying roughly half of the phone price each year (via 12 interest free payments) instead of the full retail price. That's why I stated that it's not a bad option if someone truly wants to get a new iPhone every year and is ok with continuous monthly payments. The reality is that most people these days keep their phones 3-4 years or so and don't care about upgrading every year. Some, however, do like consistently having the newest/latest device.

If you did want to keep the phone indefinitely, you could still lease it and then buy at lease end. The total cost at the end (monthly payments plus lease end purchase price) is the same as paying full price upfront but you instead get low initial monthly payments at 0% APR for lease term.

 

[eltoslightfoot]

Yeah after reading it over, it seems the only downside is trusting this third party, Klarna, with the receipt of your phone (stating it is in good working condition) at the end of the lease if you upgrade.

Other than that, I mostly stand corrected. It seems like a decent program in that you will never pay more than the original purchase price. Still not for me as I don't like dealing with third parties, but I also am happy with a 17e.

If I had to have a Pro Max, this would be an okay way to divide up the payments and then just buy after two years.

 

[eltoslightfoot]

They call it a lease but you get full credit for what you made in lease payments if you decide to buy the phone so it effectively acts like a zero percent interest loan.

iphone upgrade program or this new lease deal works for people like me who buy a new iphone every year and don't want to deal with the hassle of selling a phone every year. Before this program I would be too lazy to sell the old phone and it would just sit in my drawer (this is before Apple started taking trade ins).

Now it's so easy to make money in high yield savings accounts or in equities, there's no point to ever turn down zero percent interest loans (which is effectively what this lease deal gives you). Why tie up $1300-$2000 dollars of your money when you can just make $50 to $80 monthly payments and let your cash sit in investments?

I don't know about those high yield savings accounts...they are down considerably from where they were like 3 years ago...Still better than nothing, I guess.

 

[joshwithachance]

Why would anyone use this program? $45.99 x 12 = $551.88 + AppleCare T&L of $139.99 = $691.87!!!! How is that low?

Even if you forego the AppleCare part: I bought an iPhone 17e for $599 - which is dang near what the lease price you listed is for one year.

Why wouldn’t you? It’s an interest free agreement where you can either turn the device back in and upgrade at the end of the term, or pay off the remaining balance and keep it.

 

[VineRider]

Yeah after reading it over, it seems the only downside is trusting this third party, Klarna, with the receipt of your phone (stating it is in good working condition) at the end of the lease if you upgrade.

In reading through the information on Klarna and Apple websites, Apple handles the returns. You can either mail it in or drop off at an Apple Store.

How do I return my Apple Upgrade device?

How do I return my Apple Upgrade device?

www.klarna.com

How do I return the device I'm leasing through Apple Upgrade?​

Once you upgrade, we’ll send you a prepaid kit to return your current device through the mail, or you can drop it off at an Apple Store.

Apple Upgrade - How to Upgrade

With Apple Upgrade you decide when it's time for something new. Upgrade at the end of your lease term, or earlier for a fee. Check your upgrade status now.

www.apple.com

So, Apple probably has a 3rd party handle mail in returns like they do now for trade ins etc., but doing it in store if available should be less risky.

 

[Biro]

Yeah after reading it over, it seems the only downside is trusting this third party, Klarna, with the receipt of your phone (stating it is in good working condition) at the end of the lease if you upgrade.

Even if the phone goes back to Apple first, the lease aspect is one reason to buy AppleCare+. I’m not sure I’d trust Klarna either.

 

[mansplains]

Many folks have AppleCare One like me. I have my watch, mac, and iPhone on this plan. When it comes time to get a new phone, I won’t be paying any differently for AC+, it’ll replace the old. All this to say, the cost of AC+ may be of no concern to lessees. Individual device plans of $14/m are a ripoff vs the ~$7 per device (initial three) on AC1, and I’m aware AC is nearly pure profit.
I had iUP from iPhone 11-13 and would take Apple Upgrade over it instantly, if Apple didn’t restrict to the major carriers. (I hate how this is still a thing.)