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points by joshstrange 2 days ago | 0 comments

While I don't doubt many people are doing that, using the iPhone/Apple Upgrade Program does not immediately equate to that being the case. I always use the Upgrade program but I could buy the phone outright if I wanted but why would I? It's essentially a 0% interest loan if I buy the phone out at the end. Sure if you turn the phone in after a year (or two) you are leaving money on the table (vs selling it or repurposing it) but the Upgrade programs aren't only used by people spending outside their means.

[–] quietsegfault 2 days ago

The iPhone update program /was/ a great deal for a number of reasons. The current klarna incarnation pushes the value lever in the wrong direction, this being the first year I haven’t upgraded in probably a decade. I /could/ pay cash, but it was just as easy to use someone else’s money so why not?

[–] joshstrange 2 days ago

My understanding is that while it's a loan->lease change, the TCO is the same under both plans. I might agree that the Klarna version feel scummier but it doesn't change the financials for me and it's still effectively a 0% interest loan. I set aside the full cost of the phone in my budgeting app on day 1 and then draw down from that category over the span of the loan/lease so it's effectively like I'm buying it but I get to park the money in a HYSA.

[–] quietsegfault 2 days ago

The TCO isn’t the same mostly because now you need to pay for AppleCare separately where before it was included.

[–] joshstrange 2 days ago

There’s a good chance I’m wrong about this, but I thought they lowered the price to account for not including Apple Care? So you’re correct, it’s no longer included, but the price per month and total cost of ownership is the same?