[acmnrs]

The 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.

[Someone]

> 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.”

[drdexebtjl]

That’s evil.

So if the target demographic, the person that does not have money to buy an iPhone outright, is mugged, they need to essentially buy the iPhone outright or they start racking up interest and fees.

(I don’t care if they say the target demographic is “people who upgrade every 2 years” instead. If that were really the case, you don’t need financing, just a buy-back program)

[tzs]

Mugging is not a good example. If the phone is stolen that would typically be covered under the personal property coverage included on most homeowners or renters insurance.

[ArchOversight]

This is the same as when you get a phone through a mobile carrier. T-Mobile doesn't care that I got mugged, they want their money.

[drdexebtjl]

It’s not the same. With a mobile carrier, you could just continue to make monthly payments as normal, and at the end of your contract, the payments stop.

With this program, you can either pay a lump sum to cancel the lease early, or you can continue making monthly payments, but at the 24-month mark, since you can’t return the phone, you’ll still owe them $430.

[ct0]

Fairly certain there is no forgiveness with lease terms. Also, Im surprised that Apple Care is not a requirement, but it seem more like a decision to put the risk on the lender rather than Apple in the case of loss. I would expect a majority of people to buy the apple care for a few dollars more per month.

[lotsofpulp]

People must really like the dopamine rush of feeling outraged.

Giving people the option to not buy insurance is not evil. It's just a seller giving a buyer options at different price points.

[drdexebtjl]

Giving people options that will in practice put them into spiraling debt slavery is objectively evil.

[bradleybuda]

Given that the median household income in the US is $83k, I don’t think that losing $1k on a busted phone is likely to put many into “spiraling debt slavery”

[drdexebtjl]

57% of Americans live from paycheck to paycheck and don’t have an emergency $1k to spare.

If they had the money to buy the phone outright, they would probably buy it outright.

[Dylan16807]

It's not specifically the option to skip insurance, it's the option to finance something so prone to damage without insurance. And yeah, it's bad for that to be an option.

[monocularvision]

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.

[whatever1]

So essentially 2 years worth of payments, with a reasonable monthly payment, will not be enough to buy an apple device.

[999900000999]

More tricks to hide rising prices across the board.

Looks like a recession indicator to me.

[kgwgk]

I wish we got some shrinkflation and they brought back the iPhone mini.

[cloudfudge]

Yes please. I can't really believe it but I'm researching android phones because I will not upgrade to something larger than my 3rd gen iPhone SE.

[ahmd-sh]

perhaps even a... great depression indicator? (ref: wvfrm ep. 364)

[bdcravens]

Additionally, the loan program was administered by Citizens Bank, not Apple.

[Retr0id]

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.