Is Apple's New Upgrade Program Too Good To Be True?

After Apple unveiled its new iPhone 6s and 6s Plus, the company revealed a new upgrade program *for $32/month. This new program was in the footnotes of Apple's event on Wednesday. Apple's new upgrade program looks very enticing, but it may not be as enticing as it appears. With this new program, Apple is directly trying to remove the middle man from its business, particularly the wireless carriers AT&T and Verizon.

Apple's description of their upgrade program:

"Exclusively at Apple’s retail stores in the US, customers can choose their carrier and get an unlocked iPhone 6s or iPhone 6s Plus with the opportunity to get a new iPhone annually and AppleCare+ on the new iPhone Upgrade Program with monthly payments starting at $32 (US) and $37 (US), respectively."

Apple's new upgrade program will allow you to get a new iPhone without having to pay the bulk of the cost upfront, unlike the wireless carriers that require you to pay $199 for the 16GB iPhone on contract.
The 64GB and 120GB versions of the new iPhone 6s (not the plus) will be available for $299 and $399. On the surface, Apple's new program looks really good compared to the wireless carriers.

What Apple's New Upgrade Program Offers You:
  1. You will be able to get a brand new iPhone every year.
  2. The phone will be unlocked and you can choose which carrier you want to go with.
  3. The program comes with AppleCare+ for free.

Now, you are probably thinking, "A new unlocked iPhone every year with AppleCare+ for only $32/month. That's great, sign me up", but there are many details for this program that have yet to be disclosed.

To start, let's compare Apple's new program to those of the wireless carriers to see if Apple's new program isn't too good to be true. First off, Apple's new program is simply a 24-month installment agreement similar to what the wireless carriers are offering. Once you have payed the first 12-month installment as part of the agreement, you will then be able to upgrade your iPhone for a brand new one. After exchanging your current iPhone for a new one, you will start the whole process over again until following year. Unlike the individual carriers, Apple is selling you an unlocked iPhone which you can take to any carrier.  The overall selling point to this program is that you can get a brand new iPhone every 12-months for only $32 per month.
Published on Sep 12, 2015
By Cody Eustice
Cody is a freelance writer who has been writing financial articles for various sites for over a year now. He is a value investor looking for companies that sell for far less than their estimated business value.

Copyrighted 2020. Content published with author's permission.

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