Apple offers to rent an iPhone instead of buying - but is it really worth it?
The new Apple Upgrade program in the US allows renting an iPhone for a monthly fee with an annual upgrade option. While it seems tempting, comparing it to the resale value of a used device and the option to purchase it at the end of the term reveals a more complex financial picture.
Apple is expanding its iPhone purchasing options in the United States with the new Apple Upgrade program, which allows customers to rent the device for a monthly fee instead of paying the full amount upfront. The idea is simple: you pay a fixed amount each month, use the iPhone for a year, and at the end of the period, you decide whether to return it, upgrade to a new model, or purchase it outright. The question is whether this is a move that actually saves money, or if it primarily offers convenience.
For example, an iPhone 17 Pro with 256GB of storage is sold in the United States for $1,099. Under the Apple Upgrade program, it can be rented for $45.99 per month for 12 months. In total, the customer will pay $551.88 over the year — about half the full price of the device.
However, at the end of the rental period, one must choose one of three options: return the iPhone and end the contract, return it and upgrade to a newer model, or purchase the device by paying the difference between its original price and the amount already paid during the rental period.
Those who choose to return the iPhone after a year will have effectively spent $551.88, but will be left without a device. Unlike a regular purchase, it is not possible to sell the iPhone on the second-hand market or trade it in. This is a significant point, because the resale value of a used iPhone can completely change the economic viability.
To illustrate, if a customer were to purchase the iPhone for $1,099 and manage to sell it after a year for $650, the real cost of using the device would amount to only about $450 — less than the cost of the rental. Conversely, if the resale price were to drop to $500, the actual cost would reach $600, and in such a scenario, the rental program would actually turn out to be cheaper.
In fact, Apple prices the program so that after a year, the customer has paid only about 50% of the device's price. This means the company estimates that the iPhone will retain a value higher than half its price even after a year, so that the program remains profitable for it. While resale prices of used iPhones do vary, it is clear that Apple based the model on estimates regarding the value of the devices over time.
The example provided in the source reinforces this: today, Apple's trade-in program gives $560 for an iPhone 16 Pro in good condition — a device that was launched almost two years earlier. In contrast, under the rental program, the customer effectively receives a "credit" of only $547.12 for an iPhone 17 Pro after one year.
Another option is to return the iPhone and move directly to the next model. If an iPhone 18 Pro is also offered at the same monthly price of $45.99, the customer will pay another $551.88 during the second year. In total, the payments will amount to $1,103.76 over two years, at the end of which they will also have to return the device or pay the remaining balance to purchase it.
In contrast, someone who purchased each of the devices at the full price of $1,099 and managed to sell each of them for $650 would have effectively spent only $898 over those same two years. Although these are only estimates, as there is no way to know in advance what the value of a used iPhone will be, the example illustrates how a private sale can be more profitable financially.
The third option is to purchase the iPhone at the end of the rental period. In such a case, one must pay an additional $547.12 — the difference between the original price of the device and the payments already made. Ultimately, the total cost reaches exactly $1,099, i.e., the official price of the device. In other words, in this case, the Apple Upgrade program actually functions as an interest-free financing plan for 12 months.
Ultimately, there is no definitive answer to the question of whether Apple Upgrade is worthwhile. Those looking to minimize iPhone expenses as much as possible are likely to benefit more from a regular purchase and independent sale of the device after a year or two. On the other hand, users who prefer a fixed monthly payment, want to change iPhones regularly, and are not interested in dealing with selling through platforms like eBay or Facebook Marketplace, may find the program a more convenient and simple solution — even if it is not necessarily the most profitable one financially.
