CIRP Says Apple Upgrade Targets 14% of iPhone Buyers Through Direct Retail

Q: With AppleCare no longer included, is Apple's new leasing program actually a hidden price hike for loyal upgraders?

For many loyal annual upgraders, yes: dropping included AppleCare makes Apple Upgrade look cheaper on the surface, but it can function as an effective price increase if they want the same protection they used to get. Under the old iPhone Upgrade Program, AppleCare was bundled into the monthly payment. Under Apple Upgrade, the lease payment is lower, but AppleCare+ or AppleCare One must be added separately. That means a like-for-like comparison is not the advertised lease price versus the old bundled monthly rate; it is the new lease price plus protection. For customers who routinely carried AppleCare and upgrade every year, total monthly outlays can easily end up similar to or higher than before. The change matters because Apple Upgrade is a true lease, not a loan that ends in ownership. At lease end, customers must return the device, start a new lease, or pay a buyout amount. If the phone is damaged, lost, or stolen and the customer skipped coverage, the financial risk is higher. That makes AppleCare less optional in practice for many upgraders. Still, it is not a blanket price hike for everyone. Customers who never used AppleCare, are comfortable self-insuring, or want lower headline monthly payments may pay less. Apple also offers trade-in credits and 3% Daily Cash with Apple Card, which can offset some cost. So the hidden-price-hike argument is strongest for Apple’s most loyal, protection-minded upgraders, not for every customer.

1 articles · Updated · appleworld.today · Aug 13

14% of U.S. iPhone buyers purchase through Apple retail, and CIRP says Apple’s new Apple Upgrade plan could still reshape buying behavior within that smaller direct-sales group.
Apple launched the Klarna-backed leasing program last month for iPhones, iPads, Macs and Apple Watches, replacing the older iPhone Upgrade and iPhone Payments plans and limiting access to Apple Stores and Apple.com.
8% of Apple retail iPhone buyers upgrade after just one year, while 42% wait three years or longer—two extremes CIRP says are more common at Apple retail than at carrier channels.
That makes direct retail a more attractive testing ground for Apple, even though most U.S. iPhones are still sold by carriers, which limits the program’s reach across the broader customer base.