Apple Stores to Allow Customers to Purchase iPhone Through U.S. Carriers' Early Upgrade Programs

by

Apple Retail Stores will soon allow customers to purchase an iPhone through U.S. carrier early upgrade programs including AT&T Next, Verizon Edge, and T-Mobile Jump, reports 9to5Mac. Apple is aiming to implement the new initiative right before the launch of the iPhone 6 this fall, as both Genius Bar workers and store employees will receive training on the program from Sunday, August 10 to Thursday, August 28.

iphone5s5c
Currently, Apple Store customers are only limited to purchasing an iPhone through a regular two-year contract at subsidized pricing or unlocked at full-price. All three early upgrade programs allow customers to upgrade their phones more frequently as the complete cost of a device is split into monthly payments which are rolled into the standard bill each month. Verizon and T-Mobile allow customers to upgrade their phones twice every year after six months of payments, while AT&T customers can upgrade once every 12 months after a year of payments.

The move also comes after Apple Stores began allowing customers to add pre-paid or month-to-month plans when purchasing full-priced, unlocked iPhones in June. Apple CEO Tim Cook noted last year that 80 percent of iPhones are sold at third-party locations while 20 percent are sold by Apple, adding that it was a figure he would like to improve. Apple has launched a number of other programs in its retail store to boost in-store sales, which included an event this past May encouraging iPhone 4 and 4s owners to update to a newer device.

Top Rated Comments

Zadigre Avatar
85 months ago

My thoughts exactly! Was debating if I was going to join the next program or do the $250 early upgrade. Only wanted to buy at Apple because its easier to get a replacement new device incase of a DOA or defective unit.


It does not matter where you buy your iPhone ...you get the same service if you go to the Apple store directly.
Score: 2 Votes (Like | Disagree)
bpcookson Avatar
85 months ago
I'm on AT&T. I recently saved about $30 for switching from a 4GB plan to a 10GB plan that dropped my per-phone fee from $40 to $15 (we have 2 phones). The catch is this: if I buy my next phone at a subsidized cost, the per-phone fee jumps back to $40.

Basically, what they did was offer me Next pricing without signing up for the Next service and I had to increase my data plan to get it. Now I have to enroll in Next for my subsequent iPhone or otherwise face a bill that swings from a cost savings to big cost increase. I'm glad Apple will be offering the Next option in-store.

So I have the following options:
1. Buy an iPhone 6 at subsidy.
2. Buy an iPhone 6 unlocked at full price.
3. Buy an iPhone 6 under a new Next plan.

I've been debating these loosely in my head ever since switching to the 10GB plan, but never wrote anything down. Doing so here will help me make my decision and hopefully also benefit others in the same boat. So let's do some math. I have a 64GB phone now but will consider getting a 32GB phone next time, and of course there are rumors that 32 will be the new 16, so I might as well crunch numbers for all 3 price tiers.

Assumptions:
* Numbers are for 1 phone.
* "1 Year" or "2 Years" assumes either selling or turning in your phone as applicable.
* Resale values are conservative (i.e. $100, $200, $300 for a 2yr old iPhone). YMMV.
* Purchasing at subsidy and upgrading at 1 Year incurs a $250 upgrade fee.

1. Subsidy - Includes a $450 discount; raises my monthly bill by $25
Size - 1 Year - 2 Years
16GB - 780 - 1060
32GB - 780 - 1060
64GB - 780 - 1060

2. Unlocked - All costs are up front; bill remains the same
Size - 1 Year - 2 Years
16GB - 680 - 910
32GB - 680 - 910
64GB - 680 - 910

3. Next - Cost of phone split across 24 payments at 0% interest; bill remains the same
Size - 1 Year - 2 Years
16GB - 505 - 910
32GB - 555 - 910
64GB - 605 - 910

If getting a new iPhone every year is important to you, the Next Plan appears to be a no-brainer. If you don't mind waiting two years between phones, well... it seems like the Next Plan is still a no-brainer because free financing is way better than parting with all your cash up front.

I'm rather surprised by these results, so I feel I must have missed something. By all means, please let me know if you can find that I've done something wrong. Here's a link to the math:
https://dl.dropboxusercontent.com/u/28700580/iPhone%20Purchase%20Options.xlsx
Score: 1 Votes (Like | Disagree)
lolkthxbai Avatar
85 months ago

It does not matter where you buy your iPhone ...you get the same service if you go to the Apple store directly.


If you mean service as in "cell service" then yes, it's the same. However, Apple's customer service is above that of a carrier store.
Score: 1 Votes (Like | Disagree)

Top Stories

16inchmacbookpromain

Kuo: New MacBook Pro Models to Feature Flat-Edged Design, MagSafe, No Touch Bar and More Ports

Thursday January 14, 2021 9:32 pm PST by
Apple is working on two new MacBook Pro models that will feature significant design changes, well-respected Apple analyst Ming-Chi Kuo said today in a note to investors that was obtained by MacRumors. According to Kuo, Apple is developing two models in 14 and 16-inch size options. The new MacBook Pro machines will feature a flat-edged design, which Kuo describes as "similar to the iPhone 12" ...
iphone x camera close

iOS 14.4 Will Introduce Warning on iPhones With Non-Genuine Cameras

Thursday January 14, 2021 8:07 am PST by
In the second beta of iOS 14.4 seeded to developers and public testers this week, MacRumors contributor Steve Moser has discovered code indicating that Apple will be introducing a new warning on iPhones that have had their camera repaired or replaced with aftermarket components rather than genuine Apple components. "Unable to verify this iPhone has a genuine Apple camera," the message will...
prototype iphone 12 pro

Prototype iPhone 12 Pro Shown Off in Photos

Wednesday January 13, 2021 3:39 pm PST by
Developer Giulio Zompetti, who often shows off prototype versions of Apple devices, today highlighted a prototype version of the iPhone 12 Pro. The iPhone 12 Pro is running an operating system called SwitchBoard, a nonUI version of the iOS 14 update that Apple uses internally. We've seen SwitchBoard on prototype devices before, as Apple uses it to test new features. Zompetti's prototype...
find my app safari post

Safari Allows Users to Enable Hidden 'Items' Tab in 'Find My' App Ahead of AirTags Launch

Wednesday January 13, 2021 5:45 am PST by
As seen in screenshots obtained by MacRumors in 2019, Apple's long-rumored AirTags items trackers are expected to be managed through the Find My app on iPhone, iPad, and Mac. Now, any user can get an early look at this tab. MacRumors reader David Chu today alerted us that the hidden "Items" tab in the Find My app can be enabled on an iPhone or iPad by typing in the link findmy://items in...
pioneer carplay wc5700nex

The Best Apple-Related Accessories at CES 2021

Wednesday January 13, 2021 1:16 pm PST by
CES 2021 is taking place digitally this year, and it hasn't been as exciting as in past years because many vendors have opted out. That said, some companies are still showing off some interesting Apple-related accessories that are coming out this year and that will be of interest to Mac, iPad, and iPhone users. Subscribe to the MacRumors YouTube channel for more videos. Pioneer Wireless...
Hue module dimmer switch

Philips Hue Announces New Wall Switch Module, Dimmer Switch, and Outdoor Light Bar

Thursday January 14, 2021 3:11 am PST by
Philips Hue has announced a new wireless dimmer switch module that lets Hue bridge owners directly control the smart lighting from their standard wall switches. The new Philips Hue wall switch module is the ideal addition to any Philips Hue set up. Installed behind existing light switches, it allows users to turn their existing switch into a smart switch and ensures their smart lighting is...
macbook pro 16 inch thunderbolt

Bloomberg: Next-Generation MacBook Pro to Offer Improved Displays, Faster Charging Over MagSafe

Thursday January 14, 2021 11:36 pm PST by
Following today's report from analyst Ming-Chi Kuo outlining major changes for the next-generation MacBook Pro models coming in the third quarter of this year, Bloomberg's Mark Gurman has weighed in with his own report corroborating some of the details but seemingly differing a bit on others. First, Gurman shares more details on the return of MagSafe charging to the MacBook Pro, indicating...
cook cbs this morning

CBS This Morning: Apple to Make 'Big Announcement' Tomorrow Morning

Tuesday January 12, 2021 8:46 am PST by
CBS This Morning today shared a short clip of an upcoming interview with Apple CEO Tim Cook in which addressing last week's events at the U.S. Capitol, with Cook saying "it's key that people be held accountable for it." Following the clip, Gayle King of CBS noted that the interview with Cook was not specifically arranged to address the current controversy over Parler and other repercussions, ...
iOS 14

Apple Seeds Second Betas of iOS 14.4 and iPadOS 14.4 to Developers [Update: Public Beta Available]

Wednesday January 13, 2021 10:03 am PST by
Apple today seeded the second betas of upcoming iOS 14.4 and iPadOS 14.4 updates to developers for testing purposes, with the new betas coming a month after Apple released the first betas. iOS 14.4 and iPadOS 14.4 can be downloaded through the Apple Developer Center or over the air after the proper profile has been installed on an iPhone or iPad. Paired with the HomePod 14.4 beta that is...
caldigit thunderbolt 4 dock featured

CalDigit Introduces USB-C Dock With 10 Ports and Up to 94W Charging for Macs [Updated]

Wednesday January 13, 2021 9:16 am PST by
CalDigit today unveiled a new Thunderbolt 4 dock with a wide selection of connectivity options, including three USB-A ports, one USB-C port, two HDMI 2.0 ports, a Gigabit Ethernet port, an SD card slot, and a 3.5mm headphone jack. The dock also has a Thunderbolt 4 port that allows it to be connected to a Mac with a single cable, with up to 94W of pass-through charging for the latest MacBook...