iPhone Upgrade Programme

[GodAtum]

Do you think will be popular and change the face of how people will buy phones?

http://www.apple.com/uk/shop/iphone...m?cid=CDM-EU-4499&cp=em-P0017456-363829&sr=em

 

[dannyjo22]

Not for every year, I wouldn't take that option over a 12 month interest free credit card and having an asset to sell on at the end. I did think about the 20 month and changing the phone every two years but it hammered home how much money with a sim I would be spending on a phone. Tbh the price this time has made me re-think my options on what I use and need.

I wish I'd jumped on the deal my mrs got for a 6s as I'm sure they ****ed up. Over 2 years with a 64gb (2.5gb data) phone she's paying £520. I pay £16 alone for my three sim only plan as I usually buy the phone.

The price hike this time I think will move me to a cheaper android handset as I'm starting to realise how bat **** mental I am spending £30-45 a month to make a few calls and whatsapp, listen to music and books.

I do think it will be popular, very popular as people hide from themselves how much they are spending with the sim.

 

[talkshowhost]

I think it is great unless I am mistaken? You can pay off the balance at anytime and then you have the phone to do with as you please so essentially you can just spread the cost?

 

[Ree]

will never pay the full price of these phones ever again its just madness given that they depreciate so rapidly there is no value to be had.

got my 5s for £70 as its heavily scratched on back of phone (sorted with a cover) but screen is perfect.

will probably get the 7 by time the 9 comes out for around the same cost.. just think there is better value in staying a few phones behind but then again am not really fussed in having the latest phone.

 

[Vertigo]

I think it is great unless I am mistaken? You can pay off the balance at anytime and then you have the phone to do with as you please so essentially you can just spread the cost?

It's incredibly poor value for money. You'd be better off if you just bought the phone and sold it to one of the recycling companies in a year's time, let alone if you took care of it and sold it privately via a forum.

The only reason to use the upgrade programme is if you can't afford the phone and need credit to buy it.

 

[talkshowhost]

It's incredibly poor value for money. You'd be better off if you just bought the phone and sold it to one of the recycling companies in a year's time, let alone if you took care of it and sold it privately via a forum.

The only reason to use the upgrade programme is if you can't afford the phone and need credit to buy it.

The value is no different (unless you are not getting AppleCare) it just spreads the cost our over 20 months. You can at anytime pay off the whole cost (in 12 months time if you want to upgrade and sell privately) so it is no different at all and in fact cheaper as you can invest the money elsewhere to get interest as the money is in your bank not apple's if you had the money outright anyway.

 

[Junglist]

I don't understand how being able to buy something at an interest free rate is poor value? If it added a few hundred onto the cost, then yeah I'd agree

 

[Vertigo]

The value is no different (unless you are not getting AppleCare) it just spreads the cost our over 20 months. You can at anytime pay off the whole cost (in 12 months time if you want to upgrade and sell privately) so it is no different at all and in fact cheaper as you can invest the money elsewhere to get interest as the money is in your bank not apple's if you had the money outright anyway.

I don't understand how being able to buy something at an interest free rate is poor value? If it added a few hundred onto the cost, then yeah I'd agree

My comments about poor value were related specifically to the UPGRADE option of the programme, i.e. if you hand your phone back and start again after a year.

If you're merely availing yourself of the interest free credit and won't be upgrading then obviously it's not poor value as you're not paying any more than retail.

Incentally the argument that you can invest the money elsewhere to earn interest is, whilst technically correct, frankly hilarious. 99.9% of people using the interest free credit will be doing so because they don't have the money to buy it outright.

 

[haszek]

I wouldn't say it's incredibly poor value.

Paying in full £599£+£118 for apple care. Looking on websites that buy used phones loss in value is approx 43% (£257 in this case), and this price is similar to ebay. So it would cost you 257+118=£375 to use it for a year

For upgrade programme you pay 11 x £33.45 + £49=£417

Sure you can add couple of pounds for better resell deals but the difference would be worth in my opinion for easy upgrade to the latest model.

If you don't plan to buy extra insurance anyway than it's obvious it doesn't have value for you because you're paying for something you don't want and if you buy apple care and sell the phone next year it's a loss as you paid in full.

iphone 6s 64GB £619 (price at release) £351 now best offer on sellmymobile (this is where I took 43% from as a loss in value).

 

[Converge]

It's poor value if you upgrade every two years like me, but for people who must have the latest and greatest every year, then yeah, seems like a pretty good deal.

 

[Vertigo]

I wouldn't say it's incredibly poor value.

Paying in full 599£+118£ for apple care. Looking on websites that buy used phones loss in value is approx 43% (257£ in this case), and this price is similar to ebay. So it would cost you 257+118=375£ to use it for a year

For upgrade programme you pay 11 x 33.45£ + 49£=417£

Sure you can add couple of pounds for better resell deals but the difference would be worth in my opinion for easy upgrade to the latest model.

If you don't plan to buy extra insurance anyway than it's obvious it doesn't have value for you because you're paying for something you don't want and if you buy apple care and sell the phone next year it's a loss as you paid in full.

iphone 6s 64GB 619£ (price at release) 351£ now best offer on sellmymobile (this is where I took 43% from as a loss in value).

Maybe not incredibly poor value but you're definitely better off buying it outright and selling it yourself.

And can you please put the pound symbol in the right place? It's incredibly disconcerting

 

[haszek]

I'll remember next time

 

[talkshowhost]

My comments about poor value were related specifically to the UPGRADE option of the programme, i.e. if you hand your phone back and start again after a year.

If you're merely availing yourself of the interest free credit and won't be upgrading then obviously it's not poor value as you're not paying any more than retail.

Incentally the argument that you can invest the money elsewhere to earn interest is, whilst technically correct, frankly hilarious. 99.9% of people using the interest free credit will be doing so because they don't have the money to buy it outright.

I agree about the upgrade part but it does have convenience to upgrade next year without having to worry about getting beat value and potentially being without a phone if you sell yours a few weeks before release for max value. I personally wouldn't upgrade this way.

Incidentally I did the upgrade program to spread the cost as I can afford the phone outright but would rather spread the payments out and upgrade every two years generally. For me a no brainer.

 

[Caged]

You would need to factor in the cost of an outright purchase requiring more than the funds that someone might have available each month, the admin work involved in getting an interest-free credit card, and any extra effort required to arrange a private sale at the end of the year.

If you convince yourself that those are not negatives (and obviously for some people they are tiny negatives) then you aren't doing a fair comparison.

 

[JAzz]

For those who can't find an iPhone to reserve on the upgrade program, you can buy the phone outright and within 14 days if you take it to the Apple store they will refund the money and set you up on instalments.

Picked up an iPhone 7 for my wife and told the assistant there that the Plus seems impossible to buy, she told me just buy it and then bring it in.

 

[Super-Spy]

iPhone 7 Contract Value

I think the upgrade program (and the standard interest free scheme) is a very interesting move by Apple that has the potential to disrupt the traditional mobile phone commercial model.

In the past, those that have the money would tend to buy SIM free phone from Apple up front and then use the best value SIM only plan they could find.

The majority though would buy their iPhones on 24 month contracts and therefore spread the cost over 2 years but would generally end up paying a little more for the privilege.

With this new scheme, everyone can afford to buy a SIM free phone from Apple, spread the cost over 20 months and then opt for a SIM only plan.

This means they are potentially getting the best value i.e. the phone at standard RRP plus the best value SIM contract AND they have the option to trade-in/pay off the phone after a year and upgrade sooner.

I did an analysis of the best value iPhone contracts (iPhone 7 contracts here) from the major networks and you can see that in the majority of cases, you are paying approx. £25-£30 over the RRP of the phone, for SIM contracts that typically cost around £15-£20 if they were SIM free.

 

[Nitefly]

You don't just pay the price of the phone... You pay the price of the phone plus £70 a year for apple care... At least on the one I was looking at.

Had to get my calculator out to suss that one.

 

[copycatuk]

I'm pretty sure they are doing the iPhone 7 for £27.50 a month now without applecare. I just can't remember where I seen it.

 

[Super-Spy]

It is £119 for Applecare+ over 2 years. They also do an interest free payment plan without Applecare+.

Full details here: iPhone Upgrade Programme Explained

 

[Illusion]

Incentally the argument that you can invest the money elsewhere to earn interest is, whilst technically correct, frankly hilarious. 99.9% of people using the interest free credit will be doing so because they don't have the money to buy it outright.

I must be in the .1% then...I usually buy outright but this time around I did the upgrade program as it is interest free and I actually wanted Apple Care as I have broken my iPhone 6 twice in the last 6 months since cancelling insurance. I now have an extra £819 sat earning interest.

I doubt I will upgrade next year though unless the changes are drastic