One of the most interesting news from Apple’s September event, aside from new iOS devices, was the launch of iPhone Upgrade Program. This wouldn’t be so interesting as much during some previous years, since Apple announces minor upgrades to iOS devices every two years. This is not such a big deal since most of us are on a two-year contract with a carrier, so the chances are that you can get the newest iPhone version this year or its slightly improved model next year.
So, what exactly changed this year? With the introduction of a new finish in Rose Gold, and some very advanced camera improvements (including front and rear facing cameras), I am sure many iPhone 6 owners are interested in upgrading their phones. This is one of the reasons why iPhone Upgrade Program was launched.
It is worth noting how clever Apple is with this program, which might be seen as completely unreasonable a couple of years ago. We all know about planned obsolescence, and this is not a secret anymore. With this new financing program, Apple is taking even a step further, offering you a choice to keep up with the new iPhone generation that is being renewed every single year. This means that now you can trade in your almost new and still quite capable phone for even a newer and shinier one.
Even though Apple is calling it a financing program, this is essentially a lease. In order to make you want to upgrade, the company even includes Apple Care+ coverage and the option to choose a phone plan and providers, which means that iPhones come unlocked. All of these incentives seem great, but there are some very important pros and cons that need to be considered, because many financial plans or lease plans are not as lucrative as they might seem.
Apple’s Upgrade Program allows you to purchase a new iPhone for a monthly payment over a two-year period, or to trade up for the latest iPhone generation every 12 months by adding $32 to you monthly phone bill. This is the price for the 16GB iPhone 6S, and rates go up from there. The most expensive plan you can purchase comes with the 128GB iPhone 6S Plus, which is priced at $44.91.
You are probably thinking that adding $32 to a monthly bill isn’t that much, considering what you will be getting. However, there are some things that need to be considered.
Pros
Going with Apple’s Upgrade Program seems like a good idea if you really care about hardware and software support. Since the program includes Apple Care+ coverage, this means that you don’t have to worry about any hardware and software issues, and you can even get a replacement phone in case of a serious hardware issue. What is also very interesting to note is that you will be covered in two cases of accidental damage. This includes screen damage, accidental drops, and liquid damage. I am sure these are great news for those who don’t like to use a protective case with their iPhone, which leads to accidental drops and shattered screens. Note that these repairs are free of charge, but they come with a service fee plus applicable tax.
As a reviewer, I don’t need to have the newest iPhone every single year, but I know a lot of people who depend on having access to the very latest from Apple. These are mostly app developers as well as accessory designers. I have also been in touch with some photographers who use iPhones as their primary cameras, and I can really see them upgrading to the new iPhone 6S/6S Plus. For all of these individuals, using the Upgrade Program can be seen as an investment since having access to the newest iPhone can bring a profit.
Cons
When it comes to cons of Apple’s new Upgrade Program, these are mostly financial in nature. As some prominent Apple-related websites already mentioned, many will be willing to sign up for higher monthly phone payments only to have the newest iPhones in their hands. This is clearly not the company’s fault, since many of us are buying items that we can’t afford, and having an option like this one only supports this problematic habit. So why don’t we calculate how much that iPhone will actually cost you?
With the required two-year commitment, Apple’s Upgrade Program allows you to purchase the 16GB iPhone 6S for $32.45 a month. This means that the iPhone 6S will cost you $778.80 after those two years of monthly payments. However, this same phone costs $650 if pay for it at once, which means you will be paying close to $130 more. This is on top of your existing cell phone bills, which average over $100 a month on major US plans.
Apple’s iPhone Upgrade Program: The bottom line
As with other things you like or don’t like or plan to purchase, this all comes down to your personal preference. Either way, I am sure Apple will make astonishing profits with this Upgrade Program. This also goes hand in hand with today’s financial style of millennials, who are already accustomed to paying monthly fees. As Forbes magazine recently wrote, today’s generation is generally renting where their parent’s generation owned.
The bottom line is on your preference for value or style. Those who appreciate value of products will certainly skip this offer, and those who prefer attractive design and style already own Apple’s products. In case you can’t settle between these two, the Upgrade Program is there to persuade you.
