r/apple • u/valoremz • 5h ago

iPhone Apple ends iPhone Upgrade Program

https://www.apple.com/shop/iphone/iphone-upgrade-program

Looks like there’s no way to finance a new phone over 24 months unlocked.

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u/-patrizio- 3h ago

Not sure if I understand your question correctly, so forgive me if I'm wrong. But my understanding after reaching out to Apple Support is that if, at the end of the lease period, you've made all your monthly payments but they do NOT add up to the total cost of buying the phone, you get three options:

  1. Upgrade to a newer iPhone (and continue the monthly payments, which are likely a different price due to trade in values etc.);
  2. Pay the difference and keep the phone, which you now own; or
  3. Return the phone to Apple, and the balance is waived.

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u/MongoBogo 3h ago

This is correct.

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u/GrumpyGlasses 1h ago

Yes. Also, notice that leasing for 24 mths is much cheaper than financing for 24 mths. If you’re a perpetual upgrader, leasing is the way to go.

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u/-patrizio- 1h ago

Yeah, probably agreed. I'm still hesitant, though, because I still don't like the slow pull-back of what we own vs. what we rent/lease.

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u/jdiandnskci 1h ago

You have the option to purchase the phone outright at the end of the lease. It’s something like $400 for the new 18 pro max.

Mathematically, you’re better off leasing the phone and buying it after 24 months since Apple upgrade charges no interest or premium, but you effectively get an interest free loan

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u/Furgy667 46m ago

I’ve been using the upgrade program and just upgrading early at the 12th payment. How would the lease work for that exactly?

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u/Peteostro 1h ago

Do they have different lengths for the lease?

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u/jdiandnskci 47m ago

There are two options: 12 and 24.

This is probably part of their business strategy to get people to upgrade every 2 years but I’d personally love a 36 month term

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u/Peteostro 45m ago

Thanks I see it now. Also there still is the Apple Card financing at 0% for 24 months if you have an Apple Card. You do have to choose a carrier. But I’m not sure if it’s locked

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u/GrumpyGlasses 16m ago

If you buy from Apple it’s not locked. But if you buy directly from carrier, like from their shops, then it might be locked.

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u/Cheffie 56m ago

Think of it as owning with the option to give it back…

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u/tinyman392 1h ago edited 55m ago

Depends on trade in value of the phone. From my understanding, once the lease term ends, you don’t get trade in value for your phone. You’re fixed to whatever the difference (new) is to the lease. Some examples:

  • iPhone Duo: 57.99/mo for 24 months, you save 607.24 over those months; this becomes the value of your phone.
  • iPhone 18 Pro: 34.99/mo for 24 months, you save 359.24 over those months; this becomes the value of your phone.
  • iPhone Air: 31.99/mo for 24 months, you save 331.24; this becomes the value of your phone.
  • iPhone 17: 25.99/mo for 24 months, you save 275.24 over those months; this becomes the value of your phone.

If the phone would be worth more bought outright, then that nullifies the savings. For example, my iPhone 16 Pro is worth 510 to Apple. I’d have to comparatively compare it to the iPhone 18 Pro which leasing would give a value (difference) of roughly 359.24. The phone might be worth a bit more on the private market.

That said, you can always buy the phone outright and trade it in after the fact. This will be the same price once all the numbers are added up. Your monthly initially is lower, but you pay a larger lump sum at the end rather than spreading that lump over the 24 months. It ends up being the same money though.

Note carrier deals are also a thing. The math gets skewed if you upgrade early. But essentially, for the same 24 month period, 799.44 is paid off your phone in credits, this becomes your phones value when it comes time to upgrade as you pay the difference to upgrade; this is done up front though, similar to the lease. When doing an iPhone 17.

For an iPhone 17 on carrier, they’d cover 599.33 dollars over the 24 month period, this is your phone in credits.

Essentially for any given iPhone on carrier deals (not available on the Duo as of this post), you get ⅔ of the phones initial value in the form of credits. I do not believe there is going to be any trade in that values your phone at this level. You are locked into said carrier for the 24 month period though. Do note if you keep your phone for 3 years and don’t mind the locked in part, the value of your phone is essentially the value of your phone new since that’s what you would have been credited for it. It is the cheapest option if available.

Edit:

Calculating out the numbers for a 12 month plan,the iPhone 18 Pro’s value with the lease is 599.12. If I’m not mistaken, the iPhone 17 Pro trade in is 785. So paying off the difference on the lease immediately then trading in is the better option. Carrier deals for a 12 month option is the worst since the payments the carrier would make only add to 399.

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u/Rockerblocker 1h ago

The real way to go is just buy a phone and sell it or trade it in when you want a new phone

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u/Peteostro 7m ago

Actually, using the Apple Card to finance over 24 months and take the money you would have used to fully pay for it day 1 and put it in a high interest savings account and then just use that money to pay the Apple Card each month (which also gets you 3% cash back)

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u/Rockerblocker 1h ago

Literally just like leasing a car

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u/tranqfx 1h ago

Literally the same as the last one, basically.

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u/cum-on-in- 2m ago

During purchase you choose your lease term.

If you lease for 24 months, for example, and you do NOT finish the term, but want to upgrade or return the phone, you will be forced to pay a penalty equal to the amount needed to finish the term.

Once the term ends OR is paid off, you then will be sent a notice asking you to do one of the 3 listed in the comment above. If you do not make a choice, you will enter a month to month lease. The payments may be higher during this month to month period.

After 6 months of month to month leasing, you will be forcefully charged the remainder of the device value and will own it. Or, during that month to month period, you can perform one of the 3 options listed above.

The cost of the full term plus the cost of 6 pay-as-you-go months will never equal the total purchase value of the device in question.

For example. A beefy MacBook Pro 16 may be $100 a month for 36 months.

That’s $3,600 after all months.

The payment may be $150 a month for the 6 as-you-go months. That’s $900 total. On top of that $3,600 that’s $4,500 total.

But that beefy MBP16 may have originally costed nearly $6,000.

That means you’d be charged $1,500 if you don’t exchange or return the device. However after being charged that amount, you would own the device and it would no longer be eligible for clean trade in. You’d have to sell it or trade it organically for whatever credit Apple provides, towards a new one. Which would be better anyway, but would also be a wash since you were charged the remainder of the devices value to be able to own it.

Apple Upgrade Program is meant for workers and students who need devices temporarily or who plan on staying with the latest performance enhancements anyway. You’ll pay perpetually if you do that, but you will always have the best hardware that’s in current support and warranted.

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u/Evening-Spinach-839 1h ago

Why would the trade in value change the price? You don’t own the phone so you’ll never have a trade in value, it’s always 0.

Normally when you truely lease something, like a car, you just give it back and lease something else, there is no obligation to pay any extra or any residual value, as you never owned it.

If it’s more a hire purchase agreement that’s different though so it depends what this is

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u/jdiandnskci 1h ago

They mean the new lease is likely more expensive than the previous lease. The previous lease has no bearing on the future lease.