The iPhone Upgrade Program from Apple offers a convenient way to get a new iPhone every year. A common question for those interested in this program is whether AppleCare+ is mandatory. Let’s clarify the relationship between AppleCare+ and the iPhone Upgrade Program, and what your options are.
AppleCare+ is indeed a requirement to participate in the iPhone Upgrade Program. When you enroll in the program, you are required to purchase AppleCare+ for your new iPhone. This ensures your device is protected with hardware repair coverage and expert technical support. AppleCare+ provides coverage for unlimited incidents of accidental damage from handling. For each incident, there’s a service fee: $29 for screen or back glass damage, and $99 for other accidental damage, plus applicable tax. It’s important to note that the back glass damage service fee is only applicable to iPhone 12 and later models.
While standard AppleCare+ is required, AppleCare+ with Theft and Loss is optional. You are not obligated to choose the Theft and Loss coverage to join the iPhone Upgrade Program. However, it’s an option you can select if you desire more comprehensive protection. If you opt for AppleCare+ with Theft and Loss, the cost of the plan is conveniently spread out over your 24 monthly payments as part of the iPhone Upgrade Program.
AppleCare+ with Theft and Loss offers all the benefits of standard AppleCare+, but with added security. It covers up to two incidents of theft or loss every 12 months, in addition to unlimited accidental damage protection. For theft or loss incidents, there is a $149 deductible. For accidental damage, the service fees are the same as standard AppleCare+: $29 for screen or back glass damage and $99 for other accidental damage. To be eligible for theft and loss coverage, you need to have the Find My feature enabled on your iPhone at the time it is lost or stolen.
To participate in the iPhone Upgrade Program itself, there are several key requirements. The program is available for the latest iPhone models, including the iPhone 16 and iPhone 16 Pro. Eligibility requires a credit check and an eligible U.S. credit or debit card. The program involves a 24-month installment loan with a 0% APR from Citizens Bank, N.A. Remember that this 0% APR applies to the loan itself, but any interest, fees, or other costs from your card issuer are separate. You also need to activate your new iPhone with one of the participating national carriers: AT&T, Boost Mobile, T-Mobile, or Verizon. Sales tax and any applicable fees are due at the time of purchase.
Trade-ins can also play a role in lowering your costs with the iPhone Upgrade Program. Apple allows you to trade in your current smartphone to receive credit towards your new iPhone. The value of your trade-in varies depending on the condition, year, and configuration of your device. Not all devices are eligible for trade-in. You must be of legal age to trade in for credit or an Apple Gift Card. The trade-in value can be applied to your new iPhone purchase or added to an Apple Gift Card. The actual value is determined upon receipt of a qualifying device that matches the description you provided. Keep in mind that sales tax might be assessed on the full price of the new device, even with a trade-in.
Another payment option to consider is Apple Card Monthly Installments (ACMI). This is a 0% APR payment option available in the U.S. when you use your Apple Card at Apple Stores, apple.com, the Apple Store app, or by calling Apple. It’s subject to credit approval and your credit limit. To use ACMI for an iPhone purchase, you also need to select one of the eligible carriers (AT&T, Boost Mobile, T-Mobile, or Verizon). iPhones purchased with ACMI are unlocked, giving you flexibility with carriers. However, ACMI might not be available for all purchases, such as those made through employee purchase programs or on refurbished devices.
In conclusion, while AppleCare+ is a mandatory component of the iPhone Upgrade Program, providing essential protection for your new device, AppleCare+ with Theft and Loss is an optional upgrade for more extensive coverage. Understanding these options, along with the program’s requirements and payment methods like ACMI and trade-ins, can help you make an informed decision when upgrading your iPhone. For complete details and the most up-to-date information, always refer to the official Apple website and the full terms and conditions of the iPhone Upgrade Program and AppleCare+.
