Apple is offering more people another way to pay for that new iPhone that they’ve been thinking about getting, but can’t afford to tank their bank accounts to attain.
In addition to the existing upgrade program the company currently offers, it is now also accepting trade-ins of Android, Windows or older Apple smartphones and is giving either up to $350 of striaght-up in-store credit or a discounted installment rate.
The initial iPhone Upgrade Program makes an 16GB iPhone 6s with AppleCare+ available to buyers for $32.41 per month without interest. After 24 payments, the buyer owns the phone. The buyer also has an option after 12 months to upgrade to a new iPhone, free of charge, and begin a new payment cycle.
Those taking part in the new Trade Up With Installments program can take their old devices into an Apple Store for appraisal and then, based on that appraisal, get a discount on the monthly installment rate.
- For a $100 trade-in, — the typical trade-in value for an iPhone 4 and 4s — the monthly rate for a base model iPhone 6s would be $22.87.
- A $200 trade-in — the typical value for an iPhone 5, 5c and 5s — would drop that rate to $18.70.
- An iPhone 6 trade-in — valued in good condition at $300 — takes the rate to $14.54.
- A theoretical maximum trade-in value of $350 — that’s an iPhone 6 Plus — would net a monthly rate of $12.56.
iPhone 4 owners could also get an iPhone 5s for $14.58 per month while those with an iPhone 5 can notch an iPhone 6 for $14.54 monthly and an iPhone 6 trade-in can net an iPhone 6s Plus for $18.70. Non-iPhone trade-ins have a value range between $100 and $300. There are many variables in appraisal and several device options to choose from which is why the program is available only at Apple Stores.
Unlike the iPhone Upgrade Program, Trade Up With Installments does not come with AppleCare+ and does not offer the option to upgrade to a newer iPhone while on the program.
Four-inch iPhone user retention remains high and Tim Cook wants to change that. Fast.