Money & business · phone upgrade lease
Apple iPhone Upgrade Program
Recommended for no interest and an option to buy the phone out at the end; the most common caveat is that it keeps people on a perpetual upgrade cycle.
Summarized from 101 comments.
Recommended for no interest and an option to buy the phone out at the end; the most common caveat is that it keeps people on a perpetual upgrade cycle.
- recommend
- 34
- criticize
- 52
- months recommended
- 3 of 13
Why people love it
No interest or fees · 5
There's no interest, no fees. The total lease price (if you buy out at the end) is the same as the retail price. There's no downside to it at all.
Jul 2026 · commentThere's no interest or fees, and you get to buy it out at the end if you want to own it
Jul 2026 · commentWhat is more positive about it is just that there’s no interest or money factor.
Aug 2026 · commentConvenient way to spread cost · 4
But this is great for you the buyer, because it means instead of spending your cash now, you spend it over three years.
Jul 2026 · commentI don't think iPhone Upgrade Program was ever the best deal to be honest. It's just convenient.
Jul 2026 · commentTransforming a capital cost to an operational cost is fantastic.
Jul 2026 · commentEasy regular upgrades to new phones · 4
With the previous iPhone upgrade plan, I upgraded yearly and it was seamless.
Aug 2026 · commentbeing able to just give it back after 2 years is pretty reasonable
Jul 2026 · commentI see no reason not to do if you know you going to upgrade.
Jul 2026 · commentFair price compared to retail · 4
What's a few % free loan discount in comparison to almost any other retail pricing out there
Jul 2026 · commentIt's effectively a guaranteed 50% trade-in, which came out to about $200-300 in actual money
Jul 2026 · commentthe implied depreciation of the lease is pretty fair
Jul 2026 · comment
What people warn about
Encourages a constant upgrade cycle · 3
keeping people on a perpetual new-phone treadmill of monthly payments
Jul 2026 · commentIt’s a forcing function for an upgrade. You pay 75% of the cost of the device for each 2 year cycle and many people will keep doing that in perpetuity.
Jul 2026 · commentpeople will be unwilling to shell out $433 for two year old device, if they have an option to renew it for a shiny new model
Jul 2026 · commentBuyout costs more than alternatives · 4
the buyout price is never going to match depreciation, and in almost all cases keeping the device doesn't make sense
Jul 2026 · commentit works out roughly the same to just buy every phone outright and then trade in last year's model
Jul 2026 · commentIf you don't buy it at the end of the 24 month, you've been paying for a very costly lease.
Jul 2026 · commentLower payments hide total cost · 3
that is a way to hide a price increase
Jul 2026 · commentPay $32/mo (so $770 total) to use an iPhone for two years and then give it back to Apple.
Jul 2026 · commenta lot of people will see a lower payment and not realize that they're getting the phone
Jul 2026 · commentInterest and fees if not bought out · 2
they need to essentially buy the iPhone outright or they get start racking up interest and fees
Jul 2026 · commentIf you don't buy it at the end of the 24 month, you've been paying for a very costly lease.
Jul 2026 · comment
Long-term owners
being able to just give it back after 2 years is pretty reasonable
Jul 2026 · comment
You're saving $1000 on a 2/3 year cadence.
Jul 2026 · comment
Precisely what they should have done for service revenue instead of milking App Store for the past 10 years.
Jul 2026 · comment
Every quote
The 40 most detailed of 101 comments. Each links to the original.
There's no interest, no fees. The total lease price (if you buy out at the end) is the same as the retail price. There's no downside to it at all.
Recommends · Jul 2026 · in “iPhone Upgrade Program”
But this is great for you the buyer, because it means instead of spending your cash now, you spend it over three years.
Recommends · Jul 2026 · in “iPhone Upgrade Program”
I don't think iPhone Upgrade Program was ever the best deal to be honest. It's just convenient.
Mixed · Jul 2026 · in “iPhone Upgrade Program”
What's a few % free loan discount in comparison to almost any other retail pricing out there
Recommends · Jul 2026 · in “iPhone Upgrade Program”
It's effectively a guaranteed 50% trade-in, which came out to about $200-300 in actual money
Recommends · Jul 2026 · in “iPhone Upgrade Program”
There's no interest or fees, and you get to buy it out at the end if you want to own it
Recommends · Jul 2026 · in “iPhone Upgrade Program”
What is more positive about it is just that there’s no interest or money factor.
Mixed · Aug 2026 · in “Apple Introduces Leasing Program for iPhones and Other Devices”
With the previous iPhone upgrade plan, I upgraded yearly and it was seamless.
Recommends · Aug 2026 · in “Apple Introduces Leasing Program for iPhones and Other Devices”
It's essentially a 0% interest loan if I buy the phone out at the end.
Recommends · Oct 2026 · in “'I Felt Blind Panic.' They Opened Their New $2k iPhone Duo–and It Broke”
keeping people on a perpetual new-phone treadmill of monthly payments
Mixed · Jul 2026 · in “iPhone Upgrade Program”
being able to just give it back after 2 years is pretty reasonable
Recommends · Jul 2026 · in “iPhone Upgrade Program”
Transforming a capital cost to an operational cost is fantastic.
Recommends · Jul 2026 · in “iPhone Upgrade Program”
It's really just a convenience thing, not a financial decision.
Mixed · Jul 2026 · in “iPhone Upgrade Program”
I see no reason not to do if you know you going to upgrade.
Recommends · Jul 2026 · in “iPhone Upgrade Program”
the implied depreciation of the lease is pretty fair
Recommends · Jul 2026 · in “iPhone Upgrade Program”
It's an interest free loan for 2/3 of the price.
Recommends · Jul 2026 · in “iPhone Upgrade Program”
This is a free loan compared to Apple MSRP.
Recommends · Jul 2026 · in “iPhone Upgrade Program”
You're saving $1000 on a 2/3 year cadence.
Recommends · Jul 2026 · in “iPhone Upgrade Program”
that is a way to hide a price increase
Mixed · Jul 2026 · in “iPhone Upgrade Program”
It’s a forcing function for an upgrade. You pay 75% of the cost of the device for each 2 year cycle and many people will keep doing that in perpetuity.
Criticizes · Jul 2026 · in “iPhone Upgrade Program”
people will be unwilling to shell out $433 for two year old device, if they have an option to renew it for a shiny new model
Criticizes · Jul 2026 · in “iPhone Upgrade Program”
the buyout price is never going to match depreciation, and in almost all cases keeping the device doesn't make sense
Criticizes · Jul 2026 · in “iPhone Upgrade Program”
it works out roughly the same to just buy every phone outright and then trade in last year's model
Criticizes · Jul 2026 · in “iPhone Upgrade Program”
they need to essentially buy the iPhone outright or they get start racking up interest and fees
Criticizes · Jul 2026 · in “iPhone Upgrade Program”
If you don't buy it at the end of the 24 month, you've been paying for a very costly lease.
Criticizes · Jul 2026 · in “iPhone Upgrade Program”
It’s not cheaper compared to the alternative of keeping the phone beyond the lease period.
Criticizes · Jul 2026 · in “iPhone Upgrade Program”
Pay $32/mo (so $770 total) to use an iPhone for two years and then give it back to Apple.
Criticizes · Jul 2026 · in “iPhone Upgrade Program”
a lot of people will see a lower payment and not realize that they're getting the phone
Criticizes · Jul 2026 · in “iPhone Upgrade Program”
a simple product that works across the board rather than a bizarre iPhone specific optimized financial instrument
Mixed · Jul 2026 · in “iPhone Upgrade Program”
Precisely what they should have done for service revenue instead of milking App Store for the past 10 years.
Mixed · Jul 2026 · in “iPhone Upgrade Program”
As long as you treat it as a loan and not a lease you can end at any point it seems fine
Mixed · Jul 2026 · in “iPhone Upgrade Program”
This is genius, I am sure the finance department saw the benefits of the leasing model
Recommends · Jul 2026 · in “iPhone Upgrade Program”
it doesn't change the financials for me and it's still effectively a 0% interest loan
Mixed · Oct 2026 · in “'I Felt Blind Panic.' They Opened Their New $2k iPhone Duo–and It Broke”
It is not rolled forward. If they don't want to pay the $433, then they don't.
Recommends · Jul 2026 · in “iPhone Upgrade Program”
The current klarna incarnation pushes the value lever in the wrong direction
Mixed · Oct 2026 · in “'I Felt Blind Panic.' They Opened Their New $2k iPhone Duo–and It Broke”
It's just a seller giving a buyer options at different price points.
Recommends · Jul 2026 · in “iPhone Upgrade Program”
They would have used a credit card to buy it with much worse terms
Recommends · Jul 2026 · in “iPhone Upgrade Program”
Apple is sunsetting a program that is far superior as a consumer
Recommends · Jul 2026 · in “iPhone Upgrade Program”
It's also a good deal if you want to keep the phone for 8 years.
Recommends · Jul 2026 · in “iPhone Upgrade Program”
Cause revolving credit is >10%, sometimes even more than 15%!
Recommends · Jul 2026 · in “iPhone Upgrade Program”
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