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New iPhone upgrade program follows T-Mobile, Verizon’s move

September 12, 2015 By Sam Catherman

New iPhone upgrade program follows T-Mobile, Verizon’s move

Apple announced that it will offer its iPhone 6s and iPhone 6s Plus under a new pricing model, allowing customers to lease their phones directly from the company.

Apple has built a strong reputation as an innovator over the past few decades, but the company has recently announced a shift in its iPhone upgrade program that mirrors moves previously made by telecommunications giants Verizon and T-Mobile. According to a report from Tech Perspective, the company will eschew its traditional business model by leasing its new iPhone 6s and iPhone 6s Plus itself.

With Apple’s new iPhone Upgrade program, customers will be able to lease or purchase a new phone directly from Apple. The phones will be sold unlocked, and will be compatible with any major American service provider. After 12 payments, customers will have the option to upgrade to a newer model.

Phones leased by Apple will also enjoy protection from catastrophe from under AppleCare+, which offers software support, hardware repairs, and coverage for accidental water damage and shattered screens.

For a new 16GB iPhone 6s, monthly installments will start at $32.41. The 128GB version will go for $40.75 each month. The new structure passes savings onto consumers while still encouraging them to buy more mobile phones over time.

The change is the latest in a string of mobile companies that have moved away from the standard subsidized model. T-Mobile was the first company to change their pricing structure, offering customers more freedom of choice by eliminating the 2-year contract.

Verizon also made a similar change earlier this year, offering monthly payment plans for phones and ditching contracts for mobile service. Overall, the prices for mobile service remain consistent with industry prices. The new model allows users to upgrade their phones more frequently, and offers consumers the freedom to choose their next device instead of abiding by the terms of a contract.

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