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Is leasing an iPhone right for you? How Apple's Upgrade Program works and who it's for
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Whether you've gotten a new phone through your mobile service carrier or directly from the manufacturer, you've probably heard about or even used a payment plan for it. The Apple Upgrade Program is an example of one company's attempt to make it easier for you to get a new phone, but how good a deal is it, really?
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I'll break down how the new Apple Upgrade Program works, how it compares to the older version, and when it makes sense (and when it doesn't).
The Apple Upgrade Program is essentially a leasing program that lets you lease a qualifying Apple device for a predetermined period with a monthly fee lower than the cost of financing it. When the lease ends, you can either return the device in good working condition and get a new lease or keep it for an additional fee. The program includes iPhones, iPads, Macs, and Apple Watches.
This new program is managed by Klarna, a financial technology company that offers "buy now, pay later" (BNPL) payment options for short-term credit. Klarna's leasing terms with the Apple Upgrade Program don't incur extra interest, and it's not a financing option, only a lease.
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Carriers and manufacturers want to get a phone in your pocket, and they'll do anything to get you to buy one. Add in the fact that we're on track to having an "own nothing and be happy" economy, and plans like this Apple Upgrade Program work as a sort of subscription to an Apple device.
Similar to a car lease, the Apple Upgrade Program requires you to return your Apple device in good working condition. The consumer is responsible for any damaged, lost, or stolen devices, as the program doesn't include AppleCare. Consumers will incur fees if the device is damaged upon return.
Once the lease is set up, you can add AppleCare to your program to help protect your device against damage from drops and spills.