alt Hacker NewsThe iPhone Upgrade Program was a 24-month 0% financing program for iPhones. The replacement Apple Upgrade<https://www.apple.com/shop/apple-upgrade> is a leasing program that also covers iPads, Macs, and Apple Watches.
Instead of automatically owning the device after making all payments, you can choose return/upgrade/buy it at the end of the lease. The new program is backed by Klarna instead of Citizens Bank, uses a soft credit check, and no longer includes AppleCare+ by default.
The fact that the page is not particularly clear about any of this should tell you everything you need to know about this change.
Replies
Yes, this appears to be entirely about raising the price of iPhones without raising the cost of iPhones. Most people don’t buy it out right so they need a way to ease the prices raised by keeping the monthly payments around the same. The difference is you have to return the phone at the end instead of owning it.
So essentially 2 years worth of payments, with a reasonable monthly payment, will not be enough to buy an apple device.
More tricks to hide rising prices across the board.
Looks like a recession indicator to me.
Additionally, the loan program was administered by Citizens Bank, not Apple.
Man, the concept of leasing a phone is grim. The way hardware gets locked down these days, it feels like you never really own it in the first place. Leasing makes it explicit: you don't.
You'll own nothing and you'll feel weird about it.
> and no longer includes AppleCare+ by default.
On the one hand that gives users an option.
On the other hand, that is a way to hide a price increase. Also, those doing this are almost obliged to take AppleCare, as (https://www.apple.com/shop/apple-upgrade):
“What do I do if my device gets lost or is stolen?
If you have AppleCare+ Theft and Loss for your iPhone, iPad, or Apple Watch, you can file a claim at mysupport.apple.com/theftandloss.
If you don't have AppleCare+ Theft and Loss coverage and your device is stolen or lost, you'll need to close out your lease by paying the early termination fee or choose to pay the purchase option fee (plus any applicable taxes and fees). You can do that at an Apple Store, or through the Klarna app. You can then start a new lease with Apple Upgrade, finance with Apple, or buy your next device with a one-time payment.
You will continue to be charged your monthly lease payments until you either pay the early termination fee or purchase option fee. If you take no action, Klarna will continue to charge you your monthly lease payment through the extension period, and you will be charged the purchase option fee through Klarna.”