With its newest smartphone out of the gate, the iPhone 6S, Apple is offering a leasing plan that kind of works like leasing a car.
But Apple’s calling it a financing plan. The strategy is to get customers to trade in their one- or two-year old phones for the newest model.
The result, however, is a perpetual monthly payment. At the onset, Apple’s plans — starting at $27 a month to buy a phone over two years, or $32 a month to upgrade a phone every year — does lessen the impact of paying for a $700 iPhone — assuming no-contract plans are at play.
That charge may seem minimal to a phone bill probably topping $200 if you have a family plan.
But that charge doesn’t stop if you keep leasing. The debate will ensue in coming months over what is best: leasing vs. buying. That’s an ongoing argument for those in the market for new or used cars.
But just as cars are improving in quality over time, so is technology. If you takes care of your smartphone, the mobile device can last well over two years — if you can stand to be left out of the latest upgrade features. But those upgrades are really incremental and not crucial for most smartphone buyers.
Consumers should do the math to see if leasing an iPhone, or any high-quality smartphone, is the best financial option for their household.