Apple recently revealed that fans like me can now obtain a new iPhone every year — and do it without being locked into a specific carrier.
The iPhone Upgrade Program lets you pay for an iPhone in monthly installments. The phones come unlocked, so you can pair them with any carrier you prefer.
The timing couldn’t be more convenient for me: I currently have Verizon, and my two-year contract ends this fall. I’m primed for an upgrade.
The program comes on the heels of a new plan Verizon introduced this summer. Sprint, AT&T and T-Mobile each unveiled competing offers after Apple’s announcement.
With so many fresh choices, which is the smartest way to buy a new iPhone 6S?
Many outlets have posted quick comparisons that skim the surface of these new offers. What they rarely do, though, is explain… which option is the best for you?
So I dug in and ran the numbers myself. Hopefully this breakdown will help you decide whether any of these choices suit your needs.
What I Need from a Phone Plan
It’s easy to get swept up in the hype around these competing deals, but there’s more to consider than the flashy offer on the landing page. Most people don’t stick with the basic, one-size-fits-all plan promoted in ads, because everyone’s phone usage is unique.
When you actually go to the store and build a plan tailored to your life, you might discover the touted deal isn’t as great as it seemed.
For instance, my partner and I share a plan, so I must account for the cost of two new phones and a family plan that fits our calling and data needs. I want to be prepared before we head to the store — sales reps are persuasive when you’re underinformed.
To select the phone and service that fit us best, we’re asking ourselves these questions:
- How many lines do we need? We need two, and prefer a family plan.
- What model are we after? Between music, apps and photos, 16GB won’t cut it. We each want the new iPhone 6S with 64GB storage.
- Will we buy hardware insurance? Yes, for both phones.
- Do we need tech support? No. (But to compare fairly with Apple’s package, I’ll factor it into my analysis.)
- How many minutes/texts do we use monthly? Around 900 texts and 200 call minutes combined.
- How much data do we use per month? Between 8 and 12GB.
- Any special requirements (mobile hotspot, parental controls, international travel, etc.)? We travel often within the U.S. and sometimes lack reliable internet. LTE and a mobile hotspot are essential for working on the go, along with at least 10GB of data.
Which Carrier Makes Sense for Us?
First, here’s what the iPhone Upgrade Program includes:
- Finance an iPhone over 24 months
- No initial down payment
- Trade in your phone after 12 months to upgrade
- AppleCare+ (a $129 plan providing tech support, two years of hardware repair coverage and two incidents of accidental damage protection)
For a new 64GB iPhone 6S via this program, I’d pay $36.58 monthly — that’s $73.16 per month for both of us — just for the devices. We’d still need to buy service on top of that.
Would it be less expensive to finance the phones through a carrier? Let’s evaluate the alternatives.
T-Mobile
T-Mobile responded to Apple with JUMP! on Demand. This limited-time offer lists the iPhone 6S at $20 per month for 18 months, and allows upgrades up to three times annually.
(That sounds appealing until you remember new iPhones don’t release that frequently. Still, it could be useful if you want to try Android and switch back later.)
Monthly payments are the same regardless of storage, but for the 64GB model I’d owe $99 upfront (16GB models have no initial payment).
To mirror AppleCare+ coverage, I’d add device insurance and security. Premium Handset Protection runs $8 per month, and Lookout Mobile Security Premium is $4 per month — an extra $12 per device monthly.
- $40 for two iPhone 6S 64GB
- $16 for two Premium Handset Protection plans
- $8 for two Mobile Security Premium subscriptions
= $64 per month, plus $198 upfront, if we buy our phones through T-Mobile
For service, we’d choose T-Mobile’s Simple Choice Plan for two lines. T-Mobile lets you construct a family plan based on per-line data needs, so you can getexactlywhat you use.
For 5GB of 4G LTE per line, the first line is $70 and the second is $50, though speeds throttle after 1GB on the second line.
Unlimited talk & text and Wi‑Fi tethering are included, with no extra line-access fee. There’s also no activation fee regardless of how you got the phone.
Service totals $120 per month. Added to phone and insurance payments, buying devices and service through T-Mobile costs us $184 per month, plus $198 upfront.
If we bought the phones from Apple and used T-Mobile for service, we’d pay $193.16 per month, with no upfront cost.
Sprint
Sprint’s iPhone Forever deal runs through December 31. With it, you trade in your current smartphone and get an iPhone 6S for $15 per month for 22 months. Without a trade-in, the price is $22 monthly.
You can upgrade whenever a new iPhone is released, no matter how long you’ve been paying. Plus, it appears you can trade in virtually any smartphone — so even an ancient model is eligible.
For a 64GB iPhone 6S, trading in my 5C, I’d pay $19.77 per month with no upfront fee. (That’s assuming “good credit.” Choosing “building credit” on Sprint’s pre-order tool displayed $225 down and $9.32 monthly.) Sprint also offers AppleCare+ for $129.
- $39.54 for two 64GB iPhone 6S
- $129 upfront for AppleCare+
= $39.54 per month, plus $129 upfront, if we buy our phones through Sprint
Now add service.
For a 10GB shared data pool, unlimited talk and text and mobile hotspot, Sprint’s Family Share Pack plan costs $100 monthly. That includes $0 line-access fees, but there is a $36 activation fee per line.
Including service, our total with Sprint would be $139.54 per month.
If we purchased phones via Apple and used Sprint service, we’d be paying $173.16 per month.
Not a $200 iPhone, but $330 Is a Bargain
Both Sprint and T-Mobile’s installment arrangements can reduce the effective price of the iPhone.
T-Mobile offers a $24 monthly payment for 18 months, then $164 to keep the device — which makes the iPhone 6S cost $524, or $125 below Apple’s retail price.
With Sprint’s limited-time deal, the iPhone 6S can wind up costing roughly $330, after trading in your current phone.
AT&T
To stay competitive, AT&T launched AT&T Next, an installment plan that spreads the full retail cost over 20, 24 or 30 months and offers early upgrade options.
AT&T Next 24 would let me finance a 64GB iPhone 6S for $25 per month over 30 months, with the option to upgrade after 24 months. Mobile insurance is $6.99 monthly per device.
- $50 for two 64GB iPhone 6S
- $13.98 for insurance on two phones
= $63.98 per month to buy our phones through AT&T
With AT&T’s No Annual Service Contract option (for phones bought via AT&T Next, paid in full up front, or through a third party), you get unlimited talk & text and 15GB of data (with rollover) for $100, plus a $15 access fee per line.
- $100 15GB family plan
- $30 for two lines
= $130 per month for AT&T service
- $63.98 per month for phones and insurance
= $193.98 per month to buy phones and service through AT&T
If we purchased phones from Apple and used AT&T for service, we’d pay $203.16 per month.
Verizon
I’m slightly partial because I’m already a Verizon customer. I like their coverage and support, and some of the things I’ve heard from other carriers haven’t impressed me.
But the $201.60 I currently shell out each month? Not exactly ideal. If other plans deliver similar service for less, I’m open to switching.
First, I could renew my existing MORE Everything Plan and take the subsidized price for a new iPhone. Although contract plans aren’t sold to new customers anymore, Verizon makes it clear existing customers can remain on their current plans.
Moving to Verizon’s new simplified offering, called The Verizon Plan, would cost less. But does Verizon’s installment option beat buying the phone from Apple?
A 64GB iPhone 6S from Verizon costs $31.24 per month over 24 months. Insurance runs $11 monthly per device.
- $62.48 for two 64GB iPhone 6S
- $22 for insurance on two phones
= $84.48 per month to finance our phones through Verizon
On their new plans, Verizon increased value: I presently pay $80 per month for 10GB; on the new Verizon Plan I’d pay $80 for 12GB.
We’d also pay a $20 line-access fee per phone.
- $80 for 12GB Verizon Plan
- $40 access fees for two lines
= $120 per month for Verizon service
- $84.48 per month for phones and insurance
= $204.48 per month to buy phones and service through Verizon
Ultimately, Verizon is the only carrier where Apple’s direct price beats the carrier’s phone financing for our scenario.
If we purchased our iPhones through Apple and signed up for Verizon service, we’d pay $193.16 per month.
Additionally, Verizon’s financing doesn’t include an early-upgrade path like some competitors. Even without a contract, I’d likely wait two years before getting my next device.
Where We’ll Buy the iPhone 6S
So, what will I decide?
The math makes Sprint the most attractive option for us. With their iPhone Forever limited-time deal, we can each upgrade to the 64GB iPhone 6S with no initial payment and trim more than $60 from our monthly phone bill.
Armed with these figures, I think we’re ready to switch!
Your Turn: Are you planning to buy a new iPhone or another smartphone this year? Will you use one of these installment programs?
Amanda Lane is a staff writer at Savinly. She covers personal finance, careers and lifestyle topics for blogs and books, and occasionally contributes to other outlets. Follow her on Twitter for updates.
