If you buy AppleCare+, Apple's new iPhone Upgrade Program is a great deal

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  • Reply 81 of 118

    So far, this thread appears to be a lot of folks looking for -- or thinking they're getting -- a free lunch when there's no such thing (except perhaps slightly for the T-Mobile deal in return for a lower coverage network compared to ATT/Verizon/Apple, and the 10% off with the Discover card but inability to pre-order on Day 1).

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  • Reply 82 of 118
    Quote:

    Originally Posted by citpeks View Post

     

    Ah, but there is a catch.

     

    "Requires a 24-month installment loan with Citizens Bank, N.A. and iPhone activation with a national carrier — AT&T, Sprint, T-Mobile, or Verizon."

     

    Much of the attraction of owning an unlocked phone is being able to use with it any carrier, including MVNOs, which often offer better value.

     

    Being restricted to the four major carriers only leaves a choice of lesser evils among those four.

     

    Pending the final terms, and how they actually implement the program, it seems to completely ignore the MVNO and prepaid market.

     

    Even if there is a loophole, such as signing up with one of the four, activating, and then cancelling, it's not worth the hassle, and credit pull, just to get an interest-free loan.


     

    Thank you for finding that! That's what I was waiting for... It seemed too good to be true.

     

    :/

     

    So I can't have my plan after all, which is to use it with a prepaid plan.

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  • Reply 83 of 118

    I'm not sure where the savings are on this Apple plan either as when I compare it to my AT&T Next 20 month payment plan the cost comes out exactly the same.

     

    I bought an iPhone 6S Plus and paid for Apple Care+ last year.  When you take the monthly phone payment times the number of months it comes out exactly the same as the Apple upgrade version....the only advantage I can see is you get a fully unlocked phone, but the carriers are now required to unlock your phone for free once you own it anyway...so no advantage there.  The one disadvantage with the Apple Upgrade program is it forces you to pay for Apple Care +, which with the increase in price for it and the increase in deductible, I no longer believe it is a good deal for someone who is upgrading annually.  (I would pay $229 for the first incident replacement and the odds of that happening in 12 months is very low...I've upgraded my iphone every year since it came out and I have never had an incident).

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  • Reply 84 of 118
    chadbagchadbag Posts: 2,029member
    Quote:

    Originally Posted by Giffen View Post

     

    I'm not sure where the savings are on this Apple plan either as when I compare it to my AT&T Next 20 month payment plan the cost comes out exactly the same.

     

    I bought an iPhone 6S Plus and paid for Apple Care+ last year.  When you take the monthly phone payment times the number of months it comes out exactly the same as the Apple upgrade version....the only advantage I can see is you get a fully unlocked phone, but the carriers are now required to unlock your phone for free once you own it anyway...so no advantage there.  The one disadvantage with the Apple Upgrade program is it forces you to pay for Apple Care +, which with the increase in price for it and the increase in deductible, I no longer believe it is a good deal for someone who is upgrading annually.  (I would pay $229 for the first incident replacement and the odds of that happening in 12 months is very low...I've upgraded my iphone every year since it came out and I have never had an incident).


     

    Based on the math of other people, it seems that at the 12 month mark you have paid less than the equivalent 12 month trade in program at AT&T (which is 20 months vs 24 months long so you pay a little more every month on AT&T) so if you actually do trade in it may be less.  If you hold the phone to the end the cost is about the same either way.   The carriers I have heard won't unlock the phones until you have paid for them (which I think is dishonest since I am not under contract and I own the phone, even if I am still paying it since it is an installment loan).  So that is also a difference.

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  • Reply 85 of 118
    In response to everyone talking about they're Grandfathered Unlimited plans-

    I have that plan too. But this is the year it dies. Do the math- for the same price as your data and texting ($30 data, $20 unlimited text) you can get 5Gb of data, and unlimited text PLUS unlimited calling with a Mobile Share 5Gb plan. With your phone access cost of $25, you're now paying $75 total- which is cheaper than the Unlimited plan plus you get tethering, etc. Plus you an add a tablet for $10. So now two devices for less money. 5Gb is a lot of data. If you use more, sure you're gonna pay more. But anybody on the Unlimited plan knows it's not truly "Unlimited". Thus the lawsuit against AT&T. When you get throttled, your plan becomes worthless. Why are you holding onto it any more? The time to change is now. Buy the new phone outright or through financing- it's all a wash. Only way to screw yourself is to be stubborn about your obsolete plan.
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  • Reply 86 of 118

    This article is terribly misleading and should be edited.  The Title, for example, should be changed to "If you buy AppleCare+, Apple's new iPhone Upgrade Program, and you are an idiot and don't sell your old phone, this is a great deal."

     

    If you are NOT an idiot, you will be selling your old phone.  Which means regardless of what plan you choose you'll be paying full price for the phone.  At least with the carrier plans you have the option to not spend money on Applecare.  

     

    Please consider editing this.  Your yearly numbers are only useful if you're trading in your phone and trading a one year old iPhone in is the huge financial mistake.

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  • Reply 87 of 118

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  • Reply 88 of 118
    Quote:

    Originally Posted by anantksundaram View Post

     

    People keep using the term "subsidy" to refer to a partial upfront payment with the rest bundled into one's monthly payment over a 24-month contract.

     

    It is just a useless marketing term. You are/were paying for it one way or another.


    Not true at all.  Up until now, a smartphone line on my At&t plan has cost $15.  If I go with the NEXT plan that will stay at $15.  If I get a 2-year contract phone (still available in select regions) that charge will go up to $40.  I verified this today at my local AT&T district store.  

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  • Reply 89 of 118
    Also
    deapeajay wrote: »

    True, but I included the cost of AppleCare+ in my cost breakdown. And yes, I'm on Next24/30 (the graphic AI used in the article calls it Next30). But I'm just assuming I'll sell my phone after 24 months for 150 dollars to pay off the remaining 6 payments.

    Basically, it's looking to me like this Apple Upgrade plan is a fantastic bargain. It is a tad bit pricier every two years, but not a lot, and you can upgrade more frequently.

    Also, with Apple's plan you do keep the phone. So that $188 extra is not really the case, as you can sell the phone in case of Apple's plan. So you do come out ahead. For AT&T plan you have to sell to recover the balance.
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  • Reply 90 of 118

    FWIW, I spoke to an Apple Representative tonight over chat and the person I spoke to said that you could use your existing service. He did not think any current service obligations with a carrier mattered. In fact, I specifically asked if a SIM could simply be swapped over and he said yes. He said as long as the SIM was the same size, there would not have to be any interaction with the carrier.

     

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  • Reply 91 of 118

    Well, I don't know. This article say 64G 1Phone 6S cost monthly $36.58.

     

    However I just visited Apple.com and it shows $37.45/month for annual upgrade.

    Full price is $749 but $37.45 * 24 = $898.80 - $749 = $149.80

     

    I guess Apple just changed AppleCare+ price?

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  • Reply 92 of 118
    Quote:

    Originally Posted by karas11 View Post

     

    Well, I don't know. This article say 64G 1Phone 6S cost monthly $36.58.

     

    However I just visited Apple.com and it shows $37.45/month for annual upgrade.

    Full price is $749 but $37.45 * 24 = $898.80 - $749 = $149.80

     

    I guess Apple just changed AppleCare+ price?




    Yeah I think they did. They are also changing how much you have to pay as a deductible. When I first got Applecare + it as 99.00 with a 50.00 payment per incident. Then with the 5s it went up to 79.00 per incident and now Applecare + went up and it's 100.00 per incident. 

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  • Reply 93 of 118
    Quote:

    Originally Posted by chadbag View Post

     

    Since Apple is requiring actual activation of the phone with a carrier


     

    Did I miss that?  I haven't seen that definitive a statement on the subject from Apple.  Do you have a link or cite?

     

    It's entirely possible that I missed it, of course, so if I did, mea culpa.

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  • Reply 94 of 118
    chadbagchadbag Posts: 2,029member
    Did I miss that?  I haven't seen that definitive a statement on the subject from Apple.  Do you have a link or cite?

    It's entirely possible that I missed it, of course, so if I did, mea culpa.

    It has already been quoted and linked multiple times in this thread by me and others. Just read backwards.
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  • Reply 95 of 118
    Quote:

    Originally Posted by radster360 View Post



    Also

    Also, with Apple's plan you do keep the phone. So that $188 extra is not really the case, as you can sell the phone in case of Apple's plan. So you do come out ahead. For AT&T plan you have to sell to recover the balance.



    That would be awesome if true, but I don't see that in the description on Apple's site...

     

    "Getting a new iPhone every year is easy.

    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."

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  • Reply 96 of 118

    How about this?

     

    Buy phone at full price

    Buy a 64 GB iPhone 6s for $749 + $129 tax ($810 for me).

    Sell the phone after a year for "half price" ($400, perhaps).

    Monthly cost to own phone for a year = $34 + service ($90 for me, so $124 total)

     

    vs.

     

    Apple Upgrade Program

    "Finance" 64 GB iPhone 6s and AppleCare+ through apple for $37 per month.

    Trade the phone in after a year and renew your 2-year financing.

    Monthly cost to own phone for a year = $37 + service ($75 for me, so $112 total)

     

    vs.

     

    AT&T conventional 2-year contract

    Buy phone for $299 + tax ($324 for me)

    Keep the phone for two years then sell it for the "subsidized" price.

    Monthly cost to own phone for two years = service ($90)

     

    Conclusions

     

    1. Buying a subsidized phone and keeping it for two years is the least expensive option. Period. No wonder carriers are getting away from subsidies - there's less money in it for them.

     

    2. Getting a new phone every year costs more.

     

    3. Buying a phone outright is the most expensive option.

     

    4. Assuming all carriers end subsidies, then the Apple Upgrade Program becomes the best deal for those who upgrade every year. The people who will be hurt most by the end of subsidies are those who keep a phone for two years before upgrading and selling the old phone.

     

    Basically, the carriers will make more money if they end subsidies...and so will Apple because more people will be upgrading every year instead of every two years. Again, this is a win-win for the carriers and Apple and "one year" consumers. "Two year" consumers, however, will end up paying more. Carriers make more profit and Apple sells more phones.

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  • Reply 97 of 118
    chadbagchadbag Posts: 2,029member
    Quote:

    Originally Posted by DeaPeaJay View Post

     



    That would be awesome if true, but I don't see that in the description on Apple's site...

     

    "Getting a new iPhone every year is easy.

    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."




    See what description?   That you get to keep it?

     

    You CAN (but don't have to) trade in after 12 payments.  The actual installment agreement is 24 payments.  Once those 24 payments are done, the phone is yours.

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  • Reply 98 of 118
    chadbagchadbag Posts: 2,029member
    Quote:

    Originally Posted by zroger73 View Post

     

    How about this?

     

    Buy phone at full price

    Buy a 64 GB iPhone 6s for $749 + $129 tax ($810 for me).

    Sell the phone after a year for "half price" ($400, perhaps).

    Monthly cost to own phone for a year = $34 + service ($90 for me, so $124 total)

     

    vs.

     

    Apple Upgrade Program

    "Finance" 64 GB iPhone 6s and AppleCare+ through apple for $37 per month.

    Trade the phone in after a year and renew your 2-year financing.

    Monthly cost to own phone for a year = $37 + service ($75 for me, so $112 total)

     

    vs.

     

    AT&T conventional 2-year contract

    Buy phone for $299 + tax ($324 for me)

    Keep the phone for two years then sell it for the "subsidized" price.

    Monthly cost to own phone for two years = service ($90)

     

    Conclusions

     

    1. Buying a subsidized phone and keeping it for two years is the least expensive option. Period. No wonder carriers are getting away from subsidies - there's less money in it for them.

     

    2. Getting a new phone every year costs more.

     

    3. Buying a phone outright is the most expensive option.

     

    4. Assuming all carriers end subsidies, then the Apple Upgrade Program becomes the best deal for those who upgrade every year. The people who will be hurt most by the end of subsidies are those who keep a phone for two years before upgrading and selling the old phone.

     

    Basically, the carriers will make more money if they end subsidies...and so will Apple because more people will be upgrading every year instead of every two years. Again, this is a win-win for the carriers and Apple and "one year" consumers. "Two year" consumers, however, will end up paying more. Carriers make more profit and Apple sells more phones.


     

    No

     

    >Buy phone at full price

    >Buy a 64 GB iPhone 6s for $749 + $129 tax ($810 for me).

    >Sell the phone after a year for "half price" ($400, perhaps).

    >Monthly cost to own phone for a year = $34 + service ($90 for me, so $124 total)

     

    Why is your service $90 for this but only $75 when buying on installment?  With AT&T Next (installment), or when you buy the phone outright, your service is cheaper.  This should be $75 in your example.

     

     

    vs.

     

    >Apple Upgrade Program

    >"Finance" 64 GB iPhone 6s and AppleCare+ through apple for $37 per month.

    >Trade the phone in after a year and renew your 2-year financing.

    >Monthly cost to own phone for a year = $37 + service ($75 for me, so $112 total)

     

    This should be the same as the Buy the Phone Outright option above

     

    vs.

     

    >AT&T conventional 2-year contract

    >Buy phone for $299 + tax ($324 for me)

    >Keep the phone for two years then sell it for the "subsidized" price.

    >Monthly cost to own phone for two years = service ($90)

     

    NO.   The first two included AppleCare.  The 2 year contract one does not.  Need to add that in.

     

    If you do the math out correctly, and you are keeping the phone for the full two years,  it is approximately $50 more expensive on AT&T Next compared to 2-year contract IF your data plan is under 10GB.  If you data plan is 10GB or more, AT&T Next actually saves you close to $190 over 2 years compared to the 2 year contract price.   Actual numbers may be slightly different.

     

    The Apple Installment plan will be very similar in numbers to AT&T Next.

     

    If you are just trading in every 12 months, the Apple plan seems to be much better since your monthly is less (due to it being 24 month vs 20 month)

     

    If you want to see the numbers, here they are.  These are slightly rounded and may be slightly different with different devices.   Example is a 16GB 6S.  We ignore AppleCare as that is just a constant and is the same in all cases.

     

    Buy the phone outright:   $649 plus tax

    service is X$ per month, or (X-10)$ per month if 10GB plan or higher

     

    total cost is 649 + 24X   OR if 10GB plan or higher    649 + 24X - 240 = 409 + 24X

     

     

    If on 2 year contract

     

    Phone is $199 + tax

    one time activation fee (I believe it is $40)

    service per month is (X + 15)$ per month

     

    total cost is

     

    199 + 40 + 24X + 360 =  599 + 24X

     

    Since every version has 24X in it we can subtract it out to show the difference

     

    so buy phone or AT&T Next installment plan 

     

    with less than 10GB plan is   $649

    with more than 10GB plan is $409

    with 2 year contract is $599

     

    That cost is the basic cost you are paying for the phone over 2 years once you remove the cost of service out of the equation (after equalizing since the service is really the same cost each time, which is 24X, no matter how you got the phone -- the differences you see on your bill are the games they play to make it work out)

     

     

    The numbers would be slightly different for other phones.  But notice that a $299 phone under contract is $100 more when bought outright or installment plan, so the differences between the options is still about the same.

     

    And AppleCare is a constant you can add in if you like.  Then the Apple plan is VERY SIMILAR to the AT&T Next over 2 years.

     

    The APPLE PLAN makes GOOD SENSE   IF AND ONLY IF  you plan on trading up in 12 months.  The Apple plan is still a good option as it is unlocked out of the door but you may end up paying the activation fee (that is unknown now).

     

     

    Verizon probably has very similar equations and differences.   I have not done the math for Verizon.

     

     

     

     

     

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  • Reply 99 of 118
    This article neglects to comment on the Line access fee discount. If I'm not participating in Verizon's payment plan, I loose that $25 per month discount, which is a huge difference.
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  • Reply 100 of 118
    chadbagchadbag Posts: 2,029member

    So I went and paid of my existing AT&T Next installment contract for my 6 plus (but not my 6 or the wife's 6 as I am only upgrading one -- can't justify more than one this year as the screen sizes have not changed etc. [for testing apps]).

     

    So now I can order a new 6S plus.  Probably through AT&T Next 18 as I don't want to pay the presumed activation fee through the Apple program, and I get extra Chase points through my business INK card since the Next installment payments are tied to my wireless payment...

     

     

    Just have to set the alarm tonight to get up early.   Already checked "eligibility" and pre loaded as much as possible in the iOS Apple Store app.

     

    Now I just have to decide on color.  Pretty sure Space Gray (my 5S and 6 and 6plus are Gold) as I want a change.  But that Rose Gold looks nice (more reddish than pink)...

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