Summary created by Smart Answers AI
In summary:
- Macworld reports Apple has discontinued its iPhone Upgrade Program, replacing it with a new Apple Upgrade plan powered by Klarna that covers multiple devices.
- The new program advertises iPhone financing starting at $32.99 monthly but excludes AppleCare+, making total costs higher than before at $44.98 versus $42.41.
- This change represents a shift in Apple’s pricing strategy, making iPhone ownership with full protection more expensive despite appearing cheaper initially.
Apple has officially ended new enrollments in the iPhone Upgrade Program, bringing to a close one of the company’s most consumer-friendly ways to buy an iPhone. The change comes alongside the debut of Apple Upgrade, a leasing option powered by Klarna that expands beyond the iPhone to include Macs, iPads, and Apple Watches.
For nearly a decade, the iPhone Upgrade Program offered a simple proposition. Customers paid one monthly fee that included both the cost of the iPhone and AppleCare+ (more recently with Theft and Loss), and after making 12 payments, they could trade in their device and upgrade to the latest model. There was no need to worry about trade-in values, carrier deals, or selling the old phone yourself. It was one of Apple’s most straightforward purchasing options.
The Apple Upgrade plan is similar but not quite as easy or straightforward.
Apple’s new program isn’t quite as good a deal
At first glance, the new Apple Upgrade program appears to be a better value. Apple advertises the iPhone 17 starting at $32.99 per month, compared to $42.41 per month under the old iPhone Upgrade Program. You’ll need to choose a carrier too, though the phone is technically unlocked.
However, there’s an important difference. The previous program included AppleCare+ in that monthly payment, while the new one does not. If you want the same level of coverage, you’ll need to subscribe to AppleCare+ separately for an additional $11.99 per month.
That brings the real monthly cost to $44.98, actually higher than the $42.41 customers paid under the previous program. Over the course of the first year, which is when most Upgrade Program members traded in their iPhone for a new one, that’s a total of $539.76 versus $508.92 under the old plan.
The difference isn’t huge, but it represents a notable shift in Apple’s pricing strategy. By separating AppleCare from the advertised monthly payment, Apple can promote a lower starting price while making the overall cost of ownership slightly more expensive for customers who want the same protection they had before.
Existing iPhone Upgrade Program members will remain under the program until they make 24 payments or upgrade to a new device. But for new customers, one of Apple’s best and simplest ways to buy an iPhone has officially come to an end.
