Apple unveils annual iPhone Upgrade Program, updates standard iPhone price structures
Apple on Wednesday announced a revised pricing structure for iPhones, including the all-new iPhone Upgrade Program, a first-party retail plan that will let shoppers get a new iPhone every year.

Prices for the upgrade program will start at $32 a month, and will include unlocked phones with a user's choice of carrier. Each phone will also be covered under AppleCare+, Apple's most comprehensive warranty program.
For people wanting to get an iPhone through a regular carrier lease program, prices will start at $19 for an iPhone 5s, $23 for an iPhone 6, or $27 for an iPhone 6 Plus. Apple's latest models, the 6s and 6s Plus, will begin at $27 and $31 a month.

On a two-year contract, entry prices for the same devices will run from zero dollars for the iPhone 5s to $299 for a 6s Plus.

Preorders for the 6s and 6s Plus will open up this Saturday, Sept. 12. The products will be officially released on Friday, Sept. 25.

Prices for the upgrade program will start at $32 a month, and will include unlocked phones with a user's choice of carrier. Each phone will also be covered under AppleCare+, Apple's most comprehensive warranty program.
For people wanting to get an iPhone through a regular carrier lease program, prices will start at $19 for an iPhone 5s, $23 for an iPhone 6, or $27 for an iPhone 6 Plus. Apple's latest models, the 6s and 6s Plus, will begin at $27 and $31 a month.

On a two-year contract, entry prices for the same devices will run from zero dollars for the iPhone 5s to $299 for a 6s Plus.

Preorders for the 6s and 6s Plus will open up this Saturday, Sept. 12. The products will be officially released on Friday, Sept. 25.
Comments
A carrier here in Australia has had a similar deal for some time. It's a standard 2-year contract but after one year you get a brand new iPhone. The AppleCare+ being included is new though.
Yes, and the wording makes me think you restart the 24 month contract if you do as well — which I think means you'd have to keep the same phone for two years to own it. I think. The marketing!
"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."
From:
http://www.apple.com/shop/iphone/iphone-upgrade-program
Yes, and the wording makes me think you restart the 24 month contract if you do as well — which I think means you'd have to keep the same phone for two years to own it. I think. The marketing!
"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."
From:
http://www.apple.com/shop/iphone/iphone-upgrade-program
If it's anything like Sprint's, the balance is wiped out when you upgrade every 12 months, but you have to trade in your current iPhone. You have the option to keep it and pay off the remaining balance. There are no contracts either way. You're just obligated to pay off the iPhone.
I think the difference here is that you also get Apple Care along with it which at least sweetens the pot. So if you were getting a lowest tier 6s with Apple Care it would be about $300 on contract while your monthly bill pays the subsidized difference (which doesn't come off the bill when the phone is paid off) but with the installment plans at the carriers it would be the flat $129 for Apple Care (new Apple Care pricing http://www.apple.com/shop/product/APP_IPHONE_6S_PLUS_AUTO-133580/applecare-for-iphone-6s-and-iphone-6s-plus) + the $27 a month giving you a cost of $453 throughout the year that you're beholden to the plan. Apple's upgrade program at $32 a month with Apple Care comes out to $384 for the year. Seems to be a net savings unless I'm missing something.
There should be a savings, considering Apple is disintermediating the carriers and their markup.
So how much are the "[I]bring your own phone[/I]" plans from the carriers?
Will they be happy with this?
http://www.apple.com/shop/iphone/iphone-upgrade-program
If you look on different areas of Apple's website you get different prices for what appears to be the same phone
http://www.apple.com/shop/buy-iphone/iphone6s
16GB = 32.45 mo
64GB = 37.45 mo
128 GB = 42.45 mo
while on
http://www.apple.com/shop/iphone/iphone-upgrade-program
16GB = 32.41
64 GB = 36.58
128 GB = 40.75
what am I missing here?
:???:
It's a lease program. I'm sure if you damage the phone in a significant way during the year, you'll be responsible for the full cost, unless Apple is also offering additional insurance for full phone replacement.
This isn't much different from a carrier subsidized model. If you break (as opposed to damage covered under an AppleCare plan) the carrier doesn't change the terms of your contract and you still need to purchase another phone to use.