HELLO EVERYBODY AND WELCOME TO THE IPHONE UPGRADE PROGRAM POWER HOUR
I'm your host Zeyphersan. You may know me from every fucking Apple thread on this godforsaken site because I really have nothing better to do with my time. There have been a lot (and I mean a
lot of questions these past few days surrounding Apple's iPhone Upgrade Program. Which is understandable since it's a great alternative to the carrier's options. But this also means that there's a lot of room for things to be cleared up. Not for good, since I know that never works, but maybe this can help a few people. And maybe, just maybe, you can refer people in the future to this post. It will be updated as things change, of course, as they do. Apple likes to change things, sometimes just a few millimeters at a time. There's also an actually, truly helpful website that Apple just updated with all the new details you can check out, it might save you some time:
http://www.apple.com/shop/iphone/iphone-upgrade-program
Who am I? Well I'm someone who's on the program itself so I know what the process looks like from the outside. But I also work at those glorious Apple Stores (or I think it's just Apple now, silly me) so I know what goes on inside as well. At least at the retail side which is where this is most important. I'm not going to post anything to "prove" it since I like my job too much, so either believe me or don't. But once again I sort of live in these Apple threads.
Let's get started!*
*All information henceforth will be about the iPhone Upgrade Program, hereby known as iUP, in the United States of America as that is where I work. I don't know how the other countries work and cannot help you there. Also this information is current as to my knowledge both this year and last year, but some things may legitimately change for this launch vs the 6s. I'll provide updated information as soon as I get it, if something I say is incorrect it is not meant to be intentionally misleading. Sorry!
PART ONE: WHAT US THE IPHONE UPGRADE PROGRAM?
Great question! iUP is a program provided by Apple as an alternative to both upgrading through your carrier on their subsidized or device payment plans or paying full price for your shiny new phone. Traditionally, even at the Apple Store, people upgrade their phones by starting a contract with their carrier, either through a two year contract or by starting a payment plan for their device, to be paid off in a set amount of time. With some exceptions both of these options come out to be about the same price give or take, unless you're one of those people still on the AT&T unlimited plans, because AT&T truly, truly hates you.
So what's the difference? With iUP you're making monthly payments to Apple for your device instead of having something else added to your carrier bill. There are some advantages (and potentially disadvantages) to this method, which we'll discuss further. But as a brief overview:
iUP is a program that allows you to upgrade to a new iPhone every single year. It's sort of Apple's admission that yes, every single year at the time time they come out with a new phone so they might as well make it easy to stay on the latest and greatest. You make monthly payments on your phone, and after 12 payments you're free to trade that phone in to Apple and hop onto a new one. It's honestly pretty easy. The mechanics behind the program are as follows:
1) You're paying for the full retail price of the phone plus AppleCare+ over a period of 24 months. After 12 you can upgrade, after 24 you own the phone and don't have to trade it in. Legally speaking it is
not a lease since there is no purchase option at the end, you just own it.
2) Because it includes AppleCare, you have the extended warranty should you decide to keep your phone for the full 24 months, and you have two incidents of accidental damage at the Genius Bar
3) The phone is unlocked and can be used with any carrier (there is a caveat to this)
4) You are technically starting a loan with a bank Apple contracts with, CitizensOne. It's a 24 month, interest-free loan, but it is still a loan nonetheless. That means there is an application involved
5) The minimum length of time to be in this commitment is 6 months. After that time you can pay yo to 12 months and get into a new phone, or pay up to 24 months and own the phone. There is nothing that can be done prior to that 6 month mark
6) Yes you can sign up for iUP if you are still on a contract but you are STILL ON THAT CONTRACT. You are obligated to pay it off or wait it out, nothing Apple can do to get you out of that. If you're already on a device payment plan with your carrier and choose to sign up it's possible, but know that you're now on the hook for both payments
Dont worry, we still have yet to get into the REAL nitty-gritty.
PART TWO: FIRST TIMERS
So you're interested in the program, but what does this whole thing look like? Well it all has to take place at a physical Apple Store with an actual human being getting you through this process. To be honest I'm not actually positive the mechanisms behind preorders this year, but if they are like last year:
On the website pick the model you want, and select iPhone Upgrade Program as your desired way to purchase. It should list out local Apple Stores and reservation times for you to pop in and get this thing done. I don't know what it's going to look like as preorders start getting back-ordered. I assume mass chaos. This part is very likely it be updated. But the moral of the story is: preorder online at 12AM Pacific Time this Friday (that's Thursday night for people who think like I do) and try your best to get the phone you want.
!!!SUPER ACTUALLY VERY IMPORTANT INFORMATION!!!
The first time around you could only upgrade at an actual physical store, but this time around it looks like they're letting you apply online. I have, legitimately, no idea what this process looks like. It could be that they let you do the whole thing online, it could be that they're just letting you pick times online to go pick it up in store. This is all new to me, so we'll have to find out what it looks like in a couple days together. The rest of my information will be based on the IN-STORE experience since that is the known variable as of right now. As far as I can tell all upgrades from previous years have to be done in the store anyway
THINGS YOU WILL NEED TO APPLY:
1) An existing post-paid wireless account with one of the four carriers that Apple officially supports: AT&T, T-Mobile, Sprint, and Verizon. Nothing else works.
Nothing! No MVNOs, no prepaid accounts, nothing. "But Zeyphersan," I hear you saying, "I thought you said the phone was unlocked!" Well it is.... but it still has to be activated on one of those carriers. I guess after the preorders have settled down you can walk in and make a new account with one of them and then start iUP on that new plan but it's a hassle and takes a long time. Know your account information beforehand. It also has to be a personal account, not business or coorporate account. And yes because it's an activation there might be an acitivation fee from your carrier. Nothing can be done about this. But after it's activated it's an unlocked phone I promise!
2) A personal credit (NOT DEBIT) card and your social security number. Business credit card also doesn't work, it has to be personal with enough free credit on there for three months of payments. Why is this required? We'll remember how I said before that this whole thing is technically, legally a loan you're applying for? Yep, credit check. A hard inquiry that will show up on your report. It's a pretty basic check and doesn't really have a lot of requirements, but it's there. Last year there were so many checks getting run at once that CitizensOne got overloaded and people were great credit were being denied. If that happens again.... sorry. Not really much the person helping you can do about it, don't yell at them.
3) Your ID. Please please please don't forget your ID. Apple has an official list of what counts, you have no excuse:
http://www.apple.com/retail/iphone/forms-of-id.html
4) Your winning smile. Attaboy.
When you're picking up your phone and you've gone through the process you will be charged the tax on the full retail price of the phone plus the first month's payment. Both of those are easy to figure out, as tax is obviously determined wherever you live and the monthly payment is (RRP+$129)/24 months. If you're choosing to recycle your phone through Apple, which you can totally do, the value of that phone will be added back as a credit on the card that you used to sign up with. Your monthly payments do not decrease. Once you're all signed up you will be mailed a loan letter giving you the ability to access your loan online and check your balance and change the payment method to another credit card or a checking account. And just like that you're done! See you in 12 months!
PART THREE: THE RETURNING VETERANS
Welcome back you old bastards. So you realized that your 6s Plus that was all shiny and new a year ago isn't so shiny and new anymore. Now there's a new phone you want it. Holy shit do you want it. Well luckily you're on the right plan. You did all that baby stuff before last year, welcome to middle school. I'm just going to jump right into it
NOTE: THIS IS THE SECTION THAT IS MOST LIKELY TO BE UPDATED LATER ONCE I GET NEW INFORMATION ON HOW UPGRADES WILL WORK. WHAT I HAVE NOW IS HOW THE UPGRADE PROCESS WENT IF YOU "BOUGHT UP" TO A YEAR SOMETIME IN THE LAST 6 MONTHS
1) Preorder like you were planning to anyway. It doesn't looks like upgrades can be done online at all like new enrollments. Bring your phone and ID and account information and credit card and all that, just like before. It does still have to be activated on the big 4 carriers, there will be another activation fee. Also make an iOS backup before arriving at the store, don't be that guy
2) Your phone will be examined for damage, including, and this is super important, the Liquid Contact Indicator (LCI) located in the SIM tray of your phone. If there is any damage, and if that sensor is tripped at all, you're gonna have to pay the applicable indecent fee (either $29 or $99 depending on the damage) to finish the upgrade. It doesn't matter if the phone is working fine, if that LCI is red be prepared to pay $99 to rectify it. If you check before and notice a red LCI and try to remove it before coming in thinking you're clever you're not, you're just not leaving with a new phone. Once again, don't be that guy. The phones come with AppleCare to make this part easy
3) Trading in your old phone closes out the remaining balance on your loan, and hopping onto a new phone means opening a new loan. YES, THIS MEANS ANOTHER APPLICATION AND ANOTHER HARD INQUIRY ON YOUR CREDIT. The credit card and social security number are super important to have this time around for this reason. Once again don't yell at the poor retail person about this, they don't make the rules.
It should honestly be a simple and straightforward process that totally mirrors the first time, just with you giving up your old phone. And you get to leave with a new phone. Lucky you!
PART FOUR: WHAT IF I WANT LOWER PAYMENTS/NO APPLECARE/A DATE WITH ANNA KENDRICK?
Yes, there is a sister to the iUP program: iPhone Installment Program. It's mostly boring: 24 months, no early upgrade, no AppleCare as part of the cost, and any phone you trade in towards it lowers the monthly payments instead of being put back as credit on your card. Still has the same application process. It's safe and boring but it's there if you want it
I'll be around if you have any questions, and honestly the retail people know their stuff. And if they don't, someone in that building does. If you have more questions I'll be around as well, and there's also the official page like I linked before, all fresh and updated:
http://www.apple.com/shop/iphone/iphone-upgrade-program
Any comparisons to carrier plans I won't be able to do since there's so, so many different options out there. You'll have to do a little bit of your own research. I'm not here to sell you on iUP like it's the best program ever with no downsides, because it's not true. Sometimes carriers offer great options. I'm just giving you information. Good luck and happy preordering
Sent from my iPad Pro