iPhone Upgrade Program: is it worth it?

Could the iPhone Upgrade Program be the key to owning the latest iPhone?

With the launch of the iPhone 16, one of the ways to get the latest Apple smartphone model without damaging one’s finances is to purchase it through the iPhone Upgrade Program. While it may seem like an easy-to-understand proposition, what does it really offer?

What is the iPhone Upgrade Program?

The iPhone Upgrade Program (also known as iUP) allows users to get their smartphone renewed every year.

There are three main conditions under which a user is eligible to enter the program.

First, they have to sign a 24-month 0% APR installment loan “for the full retail price of the eligible iPhone.” The loan also requires the user to have a valid and eligible credit or debit card issued in the US. The first payment will be taken from this credit/debit card, and later payments will be automatically charged to the same card.

The deal also provides users with the company’s insurance, known as AppleCare+ or AppleCare+ with Theft and Loss.

To participate in the program, users must also have a new or existing wireless service plan from one of these carriers: AT&T, T-Mobile, or Verizon.

How does it work?

Payments and pre-payments

The user is able to upgrade their phone after a year or once they have made at least 12 installment payments, followed the bank's terms, have an AppleCare+ Plan, and kept their iPhone in good “physical and operational condition.”

So, despite having a 24-month contract, users can already change their phones after a year or even after half a year if they can make 12 payments during that period.

Can you trade your old phone?

Many tech companies now offer a trade-in service that allows users to bring their old devices in exchange for a discount or a credit for a new device. While Apple also promotes the service, the trade-in option isn’t available with iUP.

How to upgrade your iPhone?

In addition to making the 12 payments, a user also has to have an active AppleCare+ plan for their device and have their phone in good working condition without any “breaks or cracks.” If the phone is damaged, repairs should be made by an authorized Apple service provider.

How is iUP different from other programs and carrier offers?

One condition for entering the iUP program is having a plan with a mobile carrier. Such companies often offer various deals to get a phone cheaper. They also take trade-ins, allowing users to bring any type of phone in any condition.

When buying a phone through a carrier, the phone is “locked,” meaning that the user cannot change carriers.

People usually pay more for a device when buying via a mobile service carrier rather than paying for it in full.

Mobile service carriers also offer financing opportunities. Often, the conditions require a person to commit to the same carrier for different periods of time, ranging from 24 to 36 months, and often have to make an upfront payment for the device.

iUP vs Apple Card Monthly Installments (ACMI)

The company has one more program that helps finance new Apple purchases. With Apple Card, users can buy a device and pay for it with interest-free payments. This payment method also lets users trade in their phones and get AppleCare+.

The offer also suggests that users can receive up to 3% Daily Cashback on every purchase made using an Apple card.

As some Redditors suggest, ACMI is a more flexible choice than iUP because it has fewer enrollment requirements.

Opinions on iUP

One of the main questions that may stall users from enrolling in the program is whether they aren’t overpaying for the device.

Current and future iPhone users on Reddit shared their thoughts on the matter, often basing them on calculations.

Let’s take a look at what iUP offers regarding the latest iPhone 16. For example, if a user decides to take an iPhone 16 Pro Max with 256GB storage, it now costs $1199 without the Apple Care+ plan, which is $9.99/month, or $13.49/month if it's Apple Care+ with Theft and Loss.

With the iUP deal, the iPhone 16 Pro Max with 256GB storage and a standard AppleCare+ plan would cost $58.25 a month.

After 12 months, a user pays $699 for the phone and is eligible to exchange their device for a new one. Some users noticed that after another year, they would pay another $699, making it $1398 in total for a phone.

This may indicate that a person is already paying more for the phone, but what should be taken into account is that their Apple Care+ plan is covered, and they already have the latest iPhone.

This situation led some users to conclude that the iUP is worth enrolling in if they like to have a new phone every year.

While this year's iPhone 16 comes with some major features, such as Apple Intelligence, there’s a chance that future devices won’t include significant updates every year, making it less necessary to update the device annually.

“It's made for those that don't want to think too hard or put in the time to call Apple Care for the refund on the remaining days of their Apple Care+,” noted one of the Redditors, indicating that while having an Apple Care+ plan is one of the requirements to enroll in the iUP, users end up paying for the service that they rarely use.

This also sparked debate about other requirements to be able to get the new phone under the program.

“I don't want to deal with it. For one, it's a formal loan offered by Citizens One bank, and thus requires a credit check every year. It also doesn't give you the flexibility to pay off early, meaning you have to pay the full cost of the iPhone (24 monthly payments) before you officially own the phone. Also, although the phone is unlocked, it requires you to activate with a major carrier, so you can't easily switch to an MVNO if you want to save money on your data (totally un-Apple). Finally, it's not easily available to people under 18, unlike Apple Card Monthly Installments which are thanks to Apple Card Family,” noted one of the Redditors, asking whether such a program shouldn’t be discontinued.

“This program is not worth it. It's better to sell your phone on eBay every year and just buy a new one. It's a headache, but it's well worth the hassle,” shared another user online, hinting at another way to get the new iPhone cheaper by simply doing it the “regular” way – selling an old phone and adding that money to buy the new device.

The verdict

The iUP provides an opportunity to get the latest iPhone as soon as a user wishes to have one without paying the full price for the item or waiting for a price drop or better deals.

Users should keep in mind that this offer also comes with certain conditions, such as having a credit/debit card, Apple Care+ service, and a plan with one of the major phone carriers.

As the information shared by those who have researched the program or enrolled in it themselves shows, it's important to assess whether you need or want to change your phone every year for this program to work in your favor.