A Beginner’s Guide to Apple’s iPhone Upgrade Program

If you’re somebody who wants to always have the latest and greatest iPhone, you’re probably well aware of the iPhone Upgrade Program. Apple launched it back in 2015 as a way to set up customers with each new iPhone the day it launches while saving some money on it by also trading in their older iPhone.

But how does it work, and is it worth using?

How does the iPhone Upgrade Program work?

Apple

If you’re new to the iPhone Upgrade Program, you simply order your new iPhone through it: here. You select which of the four new iPhones — iPhone 15, iPhone 15 Plus, iPhone 15 Pro or iPhone 15 Pro Max — that you want, as well which color and storage configuration, and then you choose how you want to pay for it. You can pay the full price of the iPhone in one quick hit or you can pay over the course of 24 months.

If you’re already a part of the iPhone Upgrade Program, all you have to do is sign into your account and order the new iPhone model. After you choose your carrier (or lack there of) there’s an option that asks if you’re part of the Upgrade Program. You then follow the instructions and finish your order. A separate box with then be shipped to your house, and you’ll have up to two weeks (14 days) to use the included shipping label to return it back to Apple.

Should you pay for the iPhone monthly or in full?

When ordering through the iPhone Upgrade Program, you have two choices of payment: either up front and in fall or over a 24-month period of time. Here’s what you need to know:

Option #1: Pay for the iPhone in full

If you pay for the new iPhone in full up front, you then own it. And then in 12 months time when the new iPhone comes out, you can then trade in last year’s iPhone to Apple and then they’ll deduct the trade-in value from from the price of the new iPhone. The trade-in value of your old iPhone will vary on the model you have (and condition it’s in), but it’ll typically be between 40% to 50% of what you paid for it.

For example, if you bought an iPhone 14 for $799, it’d have a trade-in value of approximately $450. So when you upgrade to the iPhone 15, Apple will subtract the $450 off of the $799 price tag. This means that over the course of owning the iPhone 14 and the iPhone 15, you’ll have paid about $1,148.

Apple

Option #2: Pay for the iPhone over 24 months

If you don’t want to pay the full price of the iPhone up front, you have the option to pay for the iPhone over a 24-month (two-year) period. The monthly cost will vary depending on which iPhone model you choose — ranging from $39.50/month for the iPhone 15 to $74.91/month for the iPhone 15 Pro Max — and it means that when the new iPhone comes out the following year, you’ll have paid for half of the cost of your current iPhone.

When you trade in your current iPhone for the new model, you’ll then switch to a new 24-month cycle of fees to start paying off your new iPhone. The end price ends up being comparable but not quite as good compared to if you bought the iPhone out in full.

For example (and using the same example as above), if you bought an iPhone 14 for $33.29/month and then you decided you wanted to upgrade to the iPhone 15 when it came out after 12 months, you would’ve paid about $399.48 for the iPhone 14 and then you’d switch to paying $33.29/month for the iPhone 15. For the sake of this argument, say you decide to not upgrade to the iPhone 15 and pay out the full 24-month payments, you would’ve paid a total of about $1,198 for the two iPhones.

Verdict: This means that in the long term, the Upgrade Program is a slightly better deal if you pay the full price of the iPhone rather than monthly installments.

The Pros of iPhone Upgrade Program

Tucker Bowe

There are a couple big advantages to buying a new iPhone through Apple’s iPhone Upgrade Program.

First and most obviously, it guarantees that you’ll almost get half of what you paid for your older iPhone. If you were to trade-in your old iPhone to Apple and you weren’t part of the Upgrade Program, they’d offer you significantly less. Tech hardware depreciates quickly.

The second big advantage to using the iPhone Upgrade Program is that it includes a two-year AppleCare+ warranty and it will cover up to two accidents. For instance, if you drop your iPhone and crack the screen or bust a button, then Apple will repair it for free (or a small fee).

Just because you sign up for the Upgrade Program doesn’t mean you have to upgrade your iPhone every year. For example, if you have an iPhone 14 and weren’t blown away by the iPhone 15, you can wait and by the following year you’ll own the iPhone 14 outright (because you’ll have paid off the 24-month subscription fees) and your AppleCare+ would have expired, so you’ll want to upgrade. You won’t get quite as much in trade-value now that your iPhone 14 is two-years old (when the iPhone 16 comes out), but you’ll still get a good deal.

Why you might not want to join the iPhone Upgrade Program

The main reason why you would not join the iPhone Upgrade Program is if you’re not somebody who needs the latest and greatest iPhone every year. The reality is that the iPhone Upgrade Program gets you a good deal, but it’s still expensive. And the majority people don’t get a new smartphone every year. In fact, it’s common for people to hold onto the same smartphone for several years before upgrading.

The other downside is that the iPhone Upgrade Program locks you into a 24-month subscription — unless you want to upgrade to a newer iPhone after 12 months. So, if you decide you want to get the newest Google Pixel or Samsung Galaxy smartphone and return your iPhone midway through your payments, you’re out of luck.

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