Carrying around the new iPhone 16 Pro for the past week or so
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Apple has reportedly stopped working on a separate iPhone hardware subscription service, but the project's goals have been largely achieved with the iPhone Upgrade Program.
Rumors of an iPhone hardware subscription service have solidified in 2022 after years of speculation. The prototype program reportedly charged customers a monthly fee not dissimilar to App Store payments, with the credits said to be provided by Apple itself.
Apple was reportedly actively testing the program internally two years ago. In September 2022, the project was expected to roll out to users by the end of that year.
A post announcing the program's cancellation on Wednesday afternoon also said Apple would instead direct customers to third-party credit offers.
And then there's also Apple Card installment plan and the iPhone Upgrade Program. Both existing monthly payment programs that Apple supports are still running and aren't expected to be discontinued.
Operators also have their own monthly payment programs.
The iPhone Upgrade Program May Already Fit the Bill for What Apple Wanted
The iPhone Upgrade Program works similarly to what is rumored to be the iPhone subscription service. Although, instead of being guaranteed by Apple, the iPhone Upgrade Program is funded by Citizens Bank NA.
Under the program, eligible participants pay a monthly fee and receive not only a new iPhone this year, but a new iPhone of their choice every year.
This means, literally, a new device every 12 months. While you don’t have to upgrade, you also can’t do so until you’ve made 12 monthly payments.
So in some years and depending on when you join the program, you may not be eligible to upgrade to a new phone on launch day, simply based on shipping times and availability.
In reality, what you do first is go through the same steps you would take to buy a new iPhone.
The first exception may be the carrier step. If you select the option checked or activate with any carrier later, then you won’t get the iPhone Upgrade Program option later in the process.
But that doesn’t mean you’re locked into a carrier. While it may seem that way because you have to choose one at this point, once you join the program, you can switch carriers at any time.
If you join the iPhone Upgrade Program and get an iPhone, you also get AppleCare+. There's no way to skip that. However, you can add the more comprehensive AppleCare+ Theft and Loss option to it, which is an additional fee that's added to your monthly premiums.
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