Why Apple's iPhone Upgrade Program Is a Bad Deal For Most

Mark Wilson writes: You may have heard that Apple had a little get together today. There were lots of big launches — the iPhone 6S, the iPhone 6S Plus, and the iPad Pro. Those waiting for an iPhone fix were given quite a lot of get excited about, but like your friendly local drug dealer, Apple has a 'sweetener' to help ensure its customers just keep on coming back for more: the iPhone Upgrade Program which lets you upgrade to a new iPhone every year as long as you keep paying each month. On the face of it, it might seem like a good deal — particularly as the price includes Apple Care — but is that really the case? What Apple's actually doing is feeding the habit of iPhone junkies, keeping their addiction going a little bit longer, and a little bit longer, and a little bit longer. In reality, Apple would like you to perma-rent your iPhone and keep paying through the nose for it. Ideally forever.

Comments

Apple pretty much had to

[hsmith]

Carriers are moving away from subsidized phones due to changes they are making to make more money off of you. Due to this, it puts sales of shiny new phones at risk.

With Apple's leasing you the phone plan, it completely makes this irrelevant. Not many people want to shell out $700 for a new phone, but $30 a month they don't have to realize they are paying $200 in interest. It is silly human psychology.

They had to do it to keep things going.

Re:Apple pretty much had to

[jandrese]

The cost is pretty much exactly new phone and Applecare + for the year. Apple is offering what is effectively a 0% interest loan. It's a bad deal if you don't want to upgrade every year, but for people who absolutely must have the new shiny and spring for the insurance it is break even.