TLDR: Considering Apple Care? Even without Upgrading, Apple’s iPhone Upgrade Program is the Best Deal, saving $50 vs. buying an iPhone 11 outright and adding Apple Care separately. 

As iPhone sales leveled out, Apple, looking for new ways to encourage adoption of their latest phones, began offering an alternative to carrier subsidies for their iPhone line. The iPhone upgrade plan breaks up the cost of a new iPhone and Apple Care+ over 24 months. As an added bonus, after completing 12 monthly payments, you can trade in that iPhone for any new model at no additional cost. Well almost. Your new phone may have a different monthly fee depending on which model you choose, and you do have to pay sales tax in advanced as if you bought the phone for one lump sum (this is typical for any upgrade plan of this type). Essentially it’s a 0% interest lease for your phone. If you keep the phone for 24 months, the loan is paid in full and the phone is yours to keep. Is this a good deal for you? Let’s look at the numbers. 

Surprisingly, buying the iPhone 11 outright for $699 and adding Apple Care for $199 brings you to $898 in the US. Over 24 months the iPhone 11 will cost $847.92 on Apple’s iPhone Upgrade Program. Since the iPhone Upgrade Program comes with Apple Care+, you save $50.08 before tax. Apple allows you to pay off the phone at any time, so even if you prefer a lump sum, if you don’t mind the credit check, signing up for the upgrade program may be the best way to buy an iPhone. If you plan on getting Apple Care+ anyway, this is actually the best deal. 

Of course Apple Care isn’t for everyone. If you just want the phone, your credit card provides insurance, or you’re one of those lucky people who never seems to smash a phone. Apple’s phones are becoming sturdier every year, a focus of this year’s ad spots for both models. Here we find another mathematical oddity: paying monthly for your iPhone 11 actually comes out cheaper than buying it outright: $698.88. Twelve whole cents cheaper, to be exact! Don’t spend it all in one place.

There is one frustrating catch to the iPhone upgrade program. Signing up requires a post-paid plan on one of the 4 major carriers. As yet I cannot find a satisfactory explanation for this. The loan is between you and Apple’s partner Citizens One and requires a soft credit check, so why it must be tied to T-Mobile, Sprint, AT&T or Verizon, is unclear. If you have Apple Card you can still finance a phone over 24 months, even unlocked, but that’s your only option through Apple.