GoKawiilApple Upgrade launched this week, and the iPhone Upgrade Program is being discontinued as a result. But despite some similarities, the two offerings are not the same. Here are the key differences.
#1: Leasing vs financing
Apple Upgrade is a leasing program, whereas the iPhone Upgrade Program used financing.
That means if you get a new iPhone through Apple Upgrade, you won’t actually own it. You’ll make monthly payments for a 12-month or 24-month term, then have the option to either return the iPhone outright, exchange it for a new model, or pay the buyout fee to own it.
The iPhone Upgrade Program also involved monthly payments. But with that program you actually owned the device, albeit with financial strings attached.
Because of the way Apple Upgrade lets you buy your iPhone at the end of the term, and has no fees, the difference between leasing and financing is functionally pretty small. But they are technically different models.
#2: Apple Upgrade has lower monthly payments, with a catch
Similar to car leases vs financing, Apple Upgrade lets you get a new iPhone at a lower monthly cost than the iPhone Upgrade Program.
It’s partly more affordable because AppleCare isn’t included. But it’s also a lower cost because you won’t pay off the full value of the iPhone by the end of the lease term.
Instead, with Apple Upgrade you’ll pay only the majority of the iPhone’s cost during the lease. At the end of the lease, if you want to buy the iPhone, you’ll have to pay the remaining buyout cost. In the iPhone Upgrade Program, the cost of the full product is split into monthly payments from the start, so there’s no extra charge at the end.
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