Apple has just launched Apple Upgrade, a new rental program for iPhone, iPad, Mac and Apple Watch. The entire setup is built in partnership with Klarna and aims to make it easier to access the latest Apple devices without worrying about paying for everything up front or even signing up for a contract with a wireless carrier. At first glance, this looks like a huge win for fans of Apple products.
Everything from the lower monthly payments, lack of a giant upfront cost, and the ability to get a new device at the end of your lease are all really appealing, especially if you love new technology as much as I do. Address concerns about rising prices due to ongoing RAM shortages, which have pushed RAM prices to new highs. Overall, Apple Upgrade seems like a surefire win for consumers.
However, the convenience of this system is designed to attract you. What you don’t see, what’s really beneath the surface, is a plan that will not only allow you to pay for your device every month, but one that consumers don’t know all the details about. Indeed, even though Apple has explained how things will work and that you will still be able to pay for your device at the end of the lease, there is a real possibility that the company will aggressively encourage buyers to buy a new device, leading to a cycle of endless upgrades where you will never keep a device for more than a year or two.
A new way to “buy” your phone
According to Apple, the upgrade program will provide iPhone and Apple Watch rentals lasting 12 or 24 months, while Mac and iPad rentals will run for 24 or 36 months. Monthly payments start at $17.99 for iPhone, $11.99 for Apple Watch, $24.99 for Mac, and $11.99 for iPad. On the surface, it’s a good deal, especially if you do the math and see that you can use one of the latest iPhones for less than $450 over a two-year period. Unfortunately, the problem here is that you don’t actually own the device, at least not yet.
Leasing is an important word to keep in mind here, because it’s not like when you buy your phone on a monthly payment plan from your carrier. No. When you do this, you pay for the phone over several months with the intention of keeping it. With Apple Upgrade, this is just one of the options you’ll have to choose from at the end of your lease, but you can rest assured that Apple will likely do everything in its power to convince you that it’s not the best choice.
Additionally, this new program completely replaces Apple’s previous iPhone Upgrade Program. So it’s not just a test drive. Apple is committed to making this its new way of doing business. The world of mobile technology has always evolved — I remember the first time carriers offered monthly pricing for devices — and between Apple’s new leasing system and Google’s possible price-hike approach with future Pixel phones, it seems consumers are on the verge of another major shift in how they buy technology.
The Real Cost of Upgrading Apple
Ultimately, my biggest problem with the Apple Upgrade isn’t even Apple’s fault. I can understand why the company would take this approach, especially with innovation in the world of mobile technology stagnating to the point where most of the hype around new devices (at least according to the company’s advertising) is based primarily on new AI features. The days of revolutionary new devices are mostly in the past, so Apple needs to find ways to keep its devices relevant to buyers instead of letting them enjoy a new phone and holding onto it until software support runs out.
This structure, however, is one that the auto industry has already gone through, as has the real estate market. Have you ever heard of rent-to-own homes? That’s essentially what Apple’s new Upgrade Program is, except once the lease is up, you have the option to pay for the phone outright, return it and exit the program, or simply trade in your phone for a brand new one with a new monthly payment.
Of course, you’ll still be able to buy it without the lease, but that doesn’t change the fact that Apple seems to be trying to make buying your phone an afterthought. Instead, it wants to convince users that always having the most up-to-date device is their best choice by making this option as easy as possible to purchase. To be honest, I’m more surprised that we haven’t seen this hit the tech world sooner. Apple just makes it easier to keep up with the Joneses. It’s only a matter of time before other companies follow suit.
