Incentives for iPhone 6S Pre-Orders?

[Weth]

Good article.  As I stated in my post above, the Apple plan if you are getting a new phone every year makes great sense.   Just pointing out what you are paying for.  In a way, you are getting Apple Care plus for half price, or only the amount of time you need it. 

[rcschnoor]

In my opinion, the Apple upgrade plan DOES NOT make good financial sense if you plan to upgrade every year.

I will use your numbers:

Cost of 16 GB iPhone 6S with Apple upgrade plan after 1 year when you must trade in your device for new one = $390.

Cost of same phone thru Verizon when purchasing AppleCare+ after 1 year = $455.

Keep in mind, IF you are not lucky enough to get your phone EXACTLY 1 yr or less from the date of your previous purchase, you MAY have 1 additional monthly payment to make for your phone bringing your 1 yr cost up a bit higher! Of course, this would only apply to the Apple Upgrade program.

After one year, you trade in the phone with Apple upgrade plan and continue with the same cycle of upgrade/payments IF they decide to continue the program.

After one year with Verizon DPP plan, you pay off your old device to the tune of $325 and THEN sell the iPhone on a site such as swappa.com for the going rate. Just for information sake, the going rate of a 16 GB iPhone 6 in good condition (which the phone you turn in to Apple must be) is currently running $450+ but we will simply say $450 to be conservative. TOTAL 1 yr cost of your iPhone after selling  would be $455(1 yr cost) + $325(payoff amount) - $450(sale amount) = $330, $65 LESS than the 1 yr cost of the Apple upgrade program. Of course, I am unsure if AppleCare+ transfers ownership, but if it does, you could most likely get a BETTER price when selling making your 1 yr cost EVEN LESS.

I do not consider LEASING a phone for 1 yr at a cost of almost $400 a good choice, however that is only my opinion.

[kaebfly]

I think the only way any of these leasing plans are worth it is if you intend to keep it until it's paid off or if you want to switch every year but know you couldn't afford to pay full retail at once (or don't have a credit card with zero or low interest to use as your own self financing). I prefer paying up front, and if I want the next years model selling my current one to offset the new phone at full retail. Has worked well for me but my devices tend to look like new after a year or two so I get above average when I sell mine. Definitely more than I see on Swappa and Gazelle. I like that the options are out there though because honestly, putting down $700+ for a phone isn't a small thing unless you have so much money it is like picking up lunch for you lol.

[Weth]

FYI

Apple Care Plus is tied to the device and can be transferred once to a new owner.

Transfer your AppleCare plan - Apple Support

[rcschnoor]

Making the option of selling it yourself even MORE attractive!!!

[nippbee]

I would agree if Verizon wasn't supplementing the purchase of a new phone when your contract is up. I have been told by a salesman at a Verizon store they (Verizon) will pay 25.00 of my 36.00 dollar upgrade to a new Iphone 6s. This would end up costing me roughly 149.00 over two years and with nothing up front. My contract two years ago cost me 199.00 upfront to walk out with my new Iphone 5s. This seems to be a great deal. I totally get it that I cannot trade my phone in every 12 months but I'm fine with that. 

[nippbee]

One problem to that idea is you mentioned paying off the phone after 1 yr... I'm not sure but will confirm this but I'm thinking if you choose to pay off the phone after 1 yr Verizon will not be offsetting the cost for the last 12 payments with the 25.00 per month comp. So let's assume you would owe roughly 400.00 on the new Iphone 6s after 12 months then your total cost would be 400.00 Plus 24.00 you paid already which would be 424.00.

[rcschnoor]

You are correct that Verizon will not continue giving you a $25/month discount on THAT device after you pay it off. The point of the excercise, though, is that you pay it off and SELL it. Then upgrade to the newest device. The NEW device would NOW be getting the $25/month discount.

Now back to the old device. You would have paid a net $2($27 payment less $25 discount) for 12 months, or $24 as you have stated. You then pay if off to the tune of $325 for a TOTAL cost of $349 so far. NOW you go and sell that phone via swappa.com or some other similar site for $450+. THAT would recoup the amount you paid off plus a bit extra.

[VetteBlue]

AppleCare Plus still doesn't cover theft though, right? It's just extended warranty and damage protection. Asurion / VZW Insurance covers theft.

[Weth]

Correct.