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Posted by lkurtz 5 hours ago

The iPhone Upgrade Program is being replaced by Apple Upgrade(www.apple.com)
https://www.apple.com/shop/apple-upgrade
97 points | 165 commentspage 3
mmooss 4 hours ago|
Are the prices competitive with the used market? Just one datapoint: I know someone who tried to trade in a laptop; Apple offered ~$200, eBayers were buying for ~$400.
paxys 4 hours ago||
No there’s a big gap, but it is meant for people who want a guaranteed amount without going through the trouble of selling it privately.
pishpash 2 hours ago||
eBay takes a 13%+ cut, then there's shipping, so you're looking at $300 after cost of business. If you're selling a lot, sure, capture that $100 difference. If you're selling one and dealing with buyers, you'll spend at least one hour taking pictures, writing the ad copy, doing client management, going out to ship + gas to get to the post office, risk of buyer return/fraud. Say you're worth $50/hour and you're being very efficient and do all that in one hour, you may end up with a net economic gain of $40-50 after all that. Is it worth it?
Marsymars 24 minutes ago||
Whenever I sell used good, I use ebay to set the price, but I sell locally, so there's no shipping/fees involved.

Local prices around me always seem weirdly high - I sort ebay by cheapest price+shipping, match that, and that usually puts me cheaper than 90% of local listings and gets me plenty of interest.

TBH I'm not clear on why anybody outside of rural areas is selling on ebay for non-niche things.

amazingamazing 2 hours ago||
People whine about everything. This is a free loan compared to Apple MSRP.
pishpash 2 hours ago|
First-party MSRP at that. What's a few % free loan discount in comparison to almost any other retail pricing out there that is periodically 10-15% off.
LoganDark 3 hours ago||
"Leases are provided by Klarna". Great. Klarna doesn't want to give me a high limit, so this is actually worse.

My MacBook Pro was over $6,000 refurbished, and this was before Apple raised prices. There's not really a point in financing smaller purchases that you can just buy outright.

ChrisArchitect 3 hours ago||
Official post: https://www.apple.com/newsroom/2026/07/apple-upgrade-launche... (https://news.ycombinator.com/item?id=49083020)
kotaKat 4 hours ago||
question, since I couldn't find it anywhere in the terms yet: Does iPhone Upgrade Program also require the iPhone be placed into the new "partner financial lock" status, seperate of the SIMlock status (which will remain unlocked)?

https://9to5mac.com/2026/07/21/ios-27-code-suggests-apple-co...

It will be curious to see if the first Klarna defaults will start triggering a future Restricted Mode on the phone and the parts get blacklisted from re-use.

I assume certain apps will get an entitlement from Apple to enable/disable this on the device.

edit: confirmed they aren't... yet.

https://www.theverge.com/tech/972063/apple-upgrade-program-n...

viccis 4 hours ago||
They're switching to a lease model. Almost certainly because of the cost of components, but also in their interests to continue the "you'll own nothing" trend. They're even using Klarna as the leasing provider.
iscoelho 4 hours ago||
The Apple Upgrade lease model isn't even a replacement as you have to wait 24 months before upgrading.

The entire point of the iPhone Upgrade Program was to make it painless to swap to the newest iPhone every year. Without that, there's no value proposition.

smith7018 4 hours ago||
They have 12 month options for the Apple Upgrade program. I just checked how much it would cost to get an iPhone 17 PM + AppleCare+ with theft protection like I currently get from the IUP and it's $3 more a month.
iscoelho 4 hours ago||
I stand corrected! This doesn't look too bad then.
smith7018 4 hours ago||
I mean, it is $36 more a year but I guess that's not terrible. What will be interesting is the tax paid up front. IIRC, I paid tax on the entire device every time I renewed rather than just paying it during each month. So I always thought it wasn't the best deal because I paid tax on a device that I only ended up paying off half of before renewing and starting the process again. I could be wrong, though. I'm not the best with finances.
iscoelho 2 hours ago||
I don't think iPhone Upgrade Program was ever the best deal to be honest. It's just convenient.
IAmGraydon 4 hours ago||
I don't know about you, but I like to own things that appreciate. Why would I care about leasing something that just loses value as time passes? This is not a bad way to get your phone, IMO.
thewebguyd 4 hours ago|||
Yeah, especially considering most people already do this in some fashion but through their carriers (at least in the US) w/ carrier financing + those extra $10/month "upgrade anytime" programs and they end up paying more than what leasing from Apple will work out to.

Especially if you're someone who upgrades every year. 12 month option on a 17PM works out to ~$599 for the year vs. $1199 each year. $599 is roughly what you'd pay for each years new model assuming you trade in your previous gen each time, so at worst it's even with what an annual upgrader was paying already, at best you might make out a little better (assuming you are just doing trade-ins and not private sale).

There's no interest or fees, and you get to buy it out at the end if you want to own it, and the lease price is the same as the retail price, I see no downside.

viccis 3 hours ago|||
Historically, owning them meant when one person upgrades, other family members could get their old ones. I use my old iPhone as a dev phone for iOS coding. I can also just enjoy having a working device that I'm not still paying for once it's paid off.

The iUP was better about giving the choice to just buy it out at the end. This one is more rigid:

>Terminating your Apple Upgrade Lease: Closing your lease and returning your device terminates your lease. You may incur substantial fees if you terminate your lease before the end of your initial lease term. You may have the option to upgrade to a new device by entering into a new lease agreement and returning your prior device. If you upgrade, your new monthly payments may be greater than your prior monthly payments. If you do not upgrade, terminate your lease, or purchase your device by the end of the initial lease term, the lease will convert to a month-to-month lease for up to six months. Your monthly payments may increase during the month-to-month periods. If you take no action at the end of your extension period, you will be charged the purchase fee under your lease. You will not own your device at the end of your lease, unless you pay the purchase fee. Insurance is not included in your lease, and you may incur damage fees if the device is lost, stolen, or not returned in the condition required by the lease.

Partnering with Klarna explains it quite a bit. They make money on penalties. This new plan has all sorts of sticks it will beat you with if you stray off the path, so it's perfect for them.

r0fl 4 hours ago||
Leasing isn’t “I can’t afford to buy it.” It’s about capital allocation.

Why would I tie up $1,200 upfront in a device that’s going to be obsolete in a couple of years when I can spread the cost over time, preserve cash flow, and (if it’s a legitimate business expense) deduct the lease payments?

Keeping $1,200 in my business earning a return is often worth more than prepaying for a depreciating asset.

People happily lease $80,000 vehicles for exactly these reasons. Applying the same logic to a $1,200 phone isn’t irrational, just the same financing decision at a much smaller scale.

Marsymars 13 minutes ago||
> People happily lease $80,000 vehicles for exactly these reasons.

Well, kinda. Various vehicles have fleet-only trim levels that are the cheapest models available. The reasons that you'd lease a $80k Ford F-150 Raptor are somewhat different than the reasons that you'd lease a $39k F-150 XL.

thewebguyd 4 hours ago||
Yeah everyone's naysaying this but it seems like a no brainer?

There's no interest, no fees. The total lease price (if you buy out at the end) is the same as the retail price. There's no downside to it at all.

If you are someone who upgrades annually, you're now paying ~$599 split over 12 payments vs. ~$1199 up front and either trading in or trying to sell your last gen privately. It works out to about even on a trade-in->upgrade every year cycle, only you don't have to fork over the $600 up front.

luisln 2 hours ago||
When you return the device, it needs to be in mint condition. You now have a credit obligation with Klarna, whereas on the pervious system, there was also 0% financing but it was bundled AppleCare+.

I don't think anyone will ever excercise the buyout option since the phone will never be worth more than the buyout price. And like you're saying, this program does not make sense unless you are upgrading every single year.

I mean in any case, every option looks defensible once you've accepted the premise that you need a new phone every 12 months. Any minute differences in costs are just rounding errors. Like I really don't think someone upgrading every year is going to have a significantly different retirement income because they saved $1200 every year by not buying the iphone outright. It's really just a convenience thing, not a financial decision.

likelybot 4 hours ago||
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likelybot 4 hours ago||
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drnick1 4 hours ago|
This kind of business model is just another manifestation of "you'll own nothing and be happy."

Unless you are happy with Apple or Google literally owning your phone and everything in it, the solution is to buy a Pixel, with cash, unlock the bootloader, and flash GrapheneOS.

thewebguyd 4 hours ago|
Except in this case, you can still choose to own it at the end of the lease. The total lease price (if you buy it at the end) is the exact same as the retail price, there's no interest and no extra fees.
drnick1 3 hours ago|||
The issue is deeper than than. Even if you buy, not lease, the iPhone, you don't control the software. Apple is still the effective owner, and tells you what you can and can't run on your own device. Worse, Apple is able to remotely inject user-hostile programs, such as the planned CSAM scanner that was planned but ultimately abandoned[0].

[0] https://9to5mac.com/2023/09/01/csam-scanning-flaw/

compiler-guy 2 hours ago||
All of that is true, but has nothing to do with the new payment plan apple just released.
MagicMoonlight 1 hour ago|||
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