Apple unveils its new iPhone upgrade program

Apple has devised a business model and through it will be entering the device leasing market. The iPhone Upgrade Program enables the users to acquire an iPhone directly from Apple. The device will be unlocked and the customer will get the freedom to choose and switch between mobile carriers. Of course, the service is available at a price but it seems it is affordable as the Apple has thrown in the AppleCare+ iPhone protection program too. The Upgrade program will allow the customers to upgrade their smartphone each year. The system is essentially an installment plan combined with an early upgrade program. It is set in such a way that after 12 installments the customer will be able to turn the device in an upgrade to a new model.

The Apple Care+ protection will be taking care of the software support, hardware repairs and coverage of up to two accidental damage incidents which might be cracked screens or water damage. Apple has kept the monthly rates for the iPhone 6s model starting from $32.41 per month for the 16 GB version. This price goes up to $40.75 per month for the 128 GB model. The price range for iPhone 6s Plus has been set from $36.58 to $44.91. These monthly rates can be considered to be affordable when compared to what the mobile carriers charge for the same thing. This price soars even more when the cost of the device protection program is added to it.

In an attempt to stem the concept subsidized smartphone, T-Mobile had started a trend. Rather than paying $200 up front and being locked in a 2-year contract, the customers were required to pay the full cost of the device, spread out over two years. Verizon is another carrier that has followed this recently.
This new program could be a boon for Apple as the company will not only move more inventories, but will also get a steady amount of older devices that it can resell. The plan looks lucrative as there will be a large number of customers who would want a new iPhone every year. If the program catches on, Apple is bound to sell more iPhones every year. The new financing program will be available only at Apple retail locations and the customers won’t be able to sign up for it online. The devices bought through the program will be unlocked but must be activated on AT&T, Sprint, T-Mobile or Verizon.