Apple’s iPhone Upgrade Program

Yesterday, Apple announced the Apple Upgrade Program, and it sounds pretty great:

The iPhone Upgrade Program gives you an easier way to get a new iPhone every year, and the security and protection of AppleCare+. You’re even free to choose the carrier and rate plan that work for you.

The best part of the deal is that you can trade in your phone for the new model after 12 installments. Back to Apple’s promo page:

After 12 installments, you can get a new iPhone and start a new iPhone Upgrade Program. No more waiting for your carrier contract to end. Just trade in your current iPhone for a new one, and your new program begins.

A 64GB iPhone 6S Plus will cost you $40.75/mo. on the Apple Upgrade Program before you tack on carrier fees. For comparison, my iPhone 6 Plus costs me 35.38/mo. In total, the 6S Plus would cost $978 after 24 months compared to $849.12 for my iPhone 6. The price difference comes out to $128.88, which just so happens to be the newly increased price of AppleCare+ for iPhone.

So just going on price alone, you’re not saving any money by going straight to the Apple Store to buy your iPhone. But remember what you get:

Brand new iPhone
AppleCare+ included
Pick any carrier you want at the time of purchase
After 12 months, you can trade up to the new iPhone

With ATT, I got a new phone with that Next 18 contract and then had to go buy AppleCare+. That’s not a huge deal, but I first had to decline AT&T’s insurance plan by a pushy salesperson.

Given the time I purchased the phone, my contract ends on December 28, 2016 while my upgrade eligibility date is July 30, 2016. To upgrade to an iPhone 6 Plus right now, I would first have to pay AT&T over $300.

It’s possible that I could trade in my iPhone at Best Buy or a similar outlet and upgrade to the new device, but I’m not sure how the pricing would work out. Apple’s Upgrade Program eliminates all of that hassle. Customers can now walk into any Apple store and pick up the phone along with everything they need, all while knowing they can upgrade to the newest phone in 12 months. The simplicity alone is good enough for me.