Quote:
Originally Posted by dinonz
No - I think you may be confused as to some of the programs available. You can (as I described) simply buy the phone with a monthly payment that works out to 1/24th of the buy price over 24 months - so no interest, but you do pay any state taxes up front. Apple Care is not included.
Then there's the Apple iPhone Upgrade Program. This may be the one you're thinking of, and yes it works out fairly expensive I think, but does include Apple Care as you mentioned. For the iPhone 11 Pro 512GB it's $64.50 a month, so $774 a year. But after 12 payments (when the 11S Pro comes out in 12 months) you can take yours back and just get a new one and keep paying. You can basically get a new one every 12 months. Given the buy price of that phone is $1349 and you pay $774 over 12 months (I'm ignoring Apple Care as I don't know the cost), that means next year when you upgrade they're giving you about a $575 trade-in on your next one. But yes - if you don't trade in and you just keep it, I'm not sure there's an end to the $774 a year, so that would be a bad choice if you didn't plan to upgrade every year.
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There are 3 ways to purchase an iPhone from Apple.
1. Buy the iPhone and pay lump sum. Optionally, purchase AppleCare and pay lump sum or monthly.
2. Apple Payment Plan. Pay first monthly payment + taxes then another 23 monthly payments. If you choose, you can later pay off the remaining balance. Optionally, purchase AppleCare and pay lump sum or monthly.
If you have an Employee Purchase Plan through work 1 & 2 you can save a few $ (~10% of the $199) on the AppleCare, not the iPhone.
3. Apple iPhone Upgrade Program. Same as #2 except AppleCare "purchase" is mandatory, monthly payments include iPhone and AppleCare payments. If you upgrade yearly the advantage is that your "loan" and AppleCare terminate and you resume w/the new iPhone and new AppleCare. Basically, it's like a lease where Apple agrees to purchase your previous phone at 50% of the original value. If you don't upgrade then payments are the same as #2 but w/AppleCare.