Apple iPhone Leasing Program Competes with Carriers

apple logoIn a move to poach sales from the four major U.S. carriers, Apple recently changed the way it sells iPhones by introducing the iPhone Upgrade Program.

The 24-month program was designed for users always wanting the latest iPhone. Customers will pay a monthly fee of $32.41 for the latest iPhone 6S, and will be allowed to trade in their device for the iPhone 7 after 12 months.

The iPhone 6S can currently be purchased from Apple for $649. The iPhone Upgrade Program will lease the latest iPhone over a 24-month period for $777.84. This price includes the Apple Care+ insurance package which usually costs $129 and offers software support, hardware repairs for two years and two incidents of accidental damage coverage.

The program may prove enticing to customers because all phones will be unlocked. “The iPhone Upgrade Program isn’t tied to a single carrier,” says Apple. “You don’t need a multiyear service contract.”

In an attempt to compete, T-Mobile CEO John Legere has introduced a limited time offer called Jump on Demand. The 18-month leasing plan for the iPhone 6S is just $20 per month. In order to purchase the phone at the end of this period, users will pay $164, making the total price of the device just $524.

Sprint has also announced a 22-month iPhone Forever program, allowing customers to upgrade to the newest iPhone whenever one becomes available. The iPhone 6S is available for just $15 per month on the condition an old iPhone is traded in. The monthly price is $22 without a trade-in.

Verizon and AT&T both have comparable installment plans, but have yet to release any promotions related to the upcoming iPhone launch.