At the September 9, 2015 Apple Event, it was announced there is a new iPhone Upgrade Program that allows users to upgrade to a new unlocked iPhone every year and includes an AppleCare+ extended warranty with extra protection against damage. This is a major disruptor of the old model of buying smartphones. Getting an unlocked iPhone allows you to work with any carrier you prefer which switches the leverage to the consumer and can be extremely helpful for saving if your carrier isn't competitive or temporarily allowing you to switch your SIM card and get local service when traveling outside of the U.S. As CNET points out, "Apple's plan mimics similar deals offered by the four major wireless operators, which are ditching two-year service contracts with heavily subsidized devices."
The main advantage of this new iPhone Upgrade Program is that after 12 installments, you can get a new iPhone. No more waiting for your carrier contract to end to be eligible for upgrade. Just trade in your current iPhone for a new one, and your new program begins. If you don’t have any business carrier commitments, you’re free to select a new carrier or stick with the one you have. You can click here to see if your iPhone qualifies for the upgrade program.
Neil Hughes of AppleInsider says, "It's actually an interest-free way to pay off your new iPhone and AppleCare+ warranty over a two-year period, with the added option to upgrade your iPhone to the latest model every year....Apple's new iPhone Upgrade Program is a no-brainer for customers who buy AppleCare+ and want to upgrade their iPhone every year....In other words, the price you pay over two years is identical to what you would pay upfront for a new, unlocked iPhone 6s and AppleCare+ two-year warranty."
So after you pay 12 monthly payments, you are entitled to trade in your current iPhone and upgrade to the new one. You can have a new iPhone each year with only 12 payments! A requirement is you must go into an Apple Retail store to participate in this program. Although devices bought through the program will be unlocked, per Apple the phone must be activated on AT&T, Sprint, T-Mobile or Verizon.
AppleInsider had this to say about the carrier programs offered:
"In recent years, carriers have been moving away from contract subsidies and have instead been spreading out the cost of a new phone with installment plans. That means the $199 advertised price for a 16-gigabyte iPhone 6s is no longer actually obtainable by a number of customers. The new iPhone Upgrade Program is a response to that, and it's a consumer-friendly approach that takes power away from Apple's carrier partners. With zero interest charges over two years and a completely unlocked handset, Apple's loan becomes a no-brainer for anyone who plans to buy AppleCare+ for their new iPhone."
The AppleInsider article goes on to explain that if you prefer T-Mobile, this carrier is the best deal when comparing carriers and has a complicated chart showing all the different carrier plans and concludes, "The bottom line: If you're a U.S. customer, you plan on upgrading your iPhone in less than two years, and you aren't interested in T-Mobile, Apple's iPhone Upgrade Program is your best bet, hands down. Carrier installment plans are too restrictive and confusing, while Apple's offering is simple, streamlined, and will let you get a new iPhone every year at no extra cost to you, outside of the ongoing monthly payment plan."
