clarification for iPhone Upgrade program

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Level 1

9 points

clarification for iPhone Upgrade program

Hello everyone,

I consulted this nice post about how iPhone Upgrade program works:

How does Apple's iPhone Upgrade Program Work?

I wanted to mention that, by sending back your phone after one year to get the latest one, you basically sell it to Apple in half price! That is 50% price drop in one year! So I don't understand what is the point of doing this, rather than paying off the remaining of the device and selling it to someone at a much better price! For sure a 1 year iPhone worths more than 50% of its original price... Yes, the convenience is that you don't have to pay it at once, but I really wish they could take away some payments when you send back your 1 year old device for the latest one, rather than starting from month 0!

In addition, you could rather buy it from another source that offers 24 months no interest financing and do whatever you want with it! After one year, you could pay off the remaining and sell it at least 70% of its original price.

I hope this makes sense.

Thanks,

Dimos

Posted on Sep 5, 2017 9:58 AM

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Answer 1

deggie

Level 10

167,609 points

Sep 5, 2017 10:01 AM in response to dimstamat

It doesn't.

You are not selling anything back to them you are returning the device that you have been leasing from them so you can get a new phone to lease. If you do not want to return it you can do exactly as you have suggested and pay it off. For those who don't want to do that they can flip theirs and continue their payments. It really isn't much different than leasing a car.

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Answer 2

Rysz

Level 8

44,471 points

Sep 5, 2017 10:15 AM in response to dimstamat

...by sending back your phone after one year to get the latest one, you basically sell it to Apple in half price! That is 50% price drop in one year!

The payments are calculated at 24 months. After one year you only paid off 50% of the phone cost! The phone is not yet yours. If you want to, you can keep the phone and pay off the other 50%. After 24 payments you’ll own the phone and can do with it what you want.

The advantage of the program is that you get to upgrade to a new phone even though you have not yet “bought” it and have not yet paid off its full price.

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Answer 3

dimstamat Author

Level 1

9 points

Sep 5, 2017 10:24 AM in response to Rysz

If you pay the rest 50% it will be yours, and then you sell it for 70% of the price. That's reasonable amount of money. The only way it can benefit you, is when you don't have the money to pay the remaining and you are ok with the monthly payments.

I understand it is like leasing a car, where there is always a tradeoff!

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Answer 4

Rysz

Level 8

44,471 points

Sep 5, 2017 10:18 AM in response to dimstamat

You do not “loose” anything because after one year you have not yet paid 100%. You only paid off 50% of the phone’s value.

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Answer 5

Rysz

Level 8

44,471 points

Sep 5, 2017 10:20 AM in response to Csound1

After one year worth of payments the phone is not his to sell.

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Answer 6

dimstamat Author

Level 1

9 points

Sep 5, 2017 10:08 AM in response to deggie

Yes, I understand. The point is that you lose money if you return your phone after one year to get a new one. I guess you pay the convenience of upgrading to the latest iPhone every year without any hassle of selling your old one, etc.

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Answer 7

dimstamat Author

Level 1

9 points

Sep 5, 2017 10:19 AM in response to Rysz

Oh yes you did lose, because you paid 50% of the phone's price and then its not yours anymore! But, if you pay the remaining 50% you can easily sell it for 70-80% of the original price!

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Answer 8

Csound1

Level 9

60,063 points

Sep 5, 2017 10:09 AM in response to dimstamat

Exactly.

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Answer 9

deggie

Level 10

167,609 points

Sep 5, 2017 10:31 AM in response to dimstamat

Buying the iPhone comes with a cost. But you can pay the other 50%, get your new iPhone and sell that one but there is absolutely no guarantee you will get 70 - 80% of the original cost.

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Answer 10

dimstamat Author

Level 1

9 points

Sep 5, 2017 11:06 AM in response to dimstamat

By the way I didn't intend to upset anyone, or argue about Apple services with this post. I only wanted to know more about the program, so that to know if it really worth it for my needs. I also didn't want to teach you anything, make you change your mind about it, or convince you it is not good.

This was specifically for my personal needs, and that's the purpose of Apple discussion forums.

And my constant arguments were because of the comment "you don't lose anything". Of course you lose, just like you lose in the long term if you lease a car. This comes with the benefit of driving a brand new car with low monthly payments, however.

I hope it is clear.

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Answer 11

Csound1

Level 9

60,063 points

Sep 5, 2017 10:26 AM in response to dimstamat

How many more times do you need to tell us that, we can do simple math, thank you.

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Answer 12

Csound1

Level 9

60,063 points

Sep 5, 2017 10:27 AM in response to Rysz

Rysz wrote:

After one year worth of payments the phone is not his to sell.

I am au fait with that, thanks.

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Answer 13

dimstamat Author

Level 1

9 points

Sep 5, 2017 10:27 AM in response to Csound1

lol I'm just trying to say that iPhone Upgrade program comes at a cost, of course. Nobody admitted it yet, though.

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Answer 14

deggie

Level 10

167,609 points

Sep 5, 2017 11:13 AM in response to dimstamat

No, you don’t actually “lose” on either of them. You might “make” money if you pay it off...but you may not. It depends on each persons situation.

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Answer 15

dimstamat Author

Level 1

9 points

Sep 5, 2017 11:15 AM in response to deggie

Exactly, that's the point (depending on your point of view). I don't understand why people got upset.
Anyways, thanks for the help folks! Cannot wait for the new iPhone! 🙂

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