Pros and Cons of Buying an iPhone Directly From Apple

Tech support: Baked into the iPhone Upgrade Program is AppleCare+, which is one of the few extended-warranty programs recommended by Consumer Reports for certain consumers. That means if your phone gets damaged, you can take it straight to Apple to have it fixed or replaced as part of your plan. 

The iPhone Upgrade Program starts at $40 per month, depending on the phone model you select. If you buy an iPhone 16 with 128 gigabytes of storage, for example, it costs $39.50 per month. If you use Apple’s no-interest financing for 24 months, the same phone costs $33.29 per month without AppleCare+. That $6.21-a-month difference in price may be worth it to you if you want a new phone every year, plus the benefits of extended coverage.

Both options are subject to approval: The iPhone Upgrade option is technically a loan from Citizens One (and therefore may affect your credit score), while Apple’s zero-interest financing is available only with the Apple Card credit card.

Low insurance cost: Although you have the option to purchase cell phone insurance through your service provider, plans like that usually have a higher price than AppleCare+ and offer fewer benefits. Adding theft and loss coverage to the AppleCare+ included in the iPhone Upgrade Program adds $2.92 per month. Meanwhile, AT&T and Verizon charge $17 per month for insurance and device protection, and at T-Mobile, it’s $18 per month.

Switching carriers at any time: If you buy an unlocked phone through Apple, you can switch cell phone providers at will, even if you haven’t yet paid off your phone. If you buy your phone through a carrier, you have to pay the full remaining balance before bolting.

Potentially higher trade-in value: Your current phone might be worth more when you trade it in at Apple vs. a carrier. An iPhone 13 in good shape, for example, has up to a $250 trade-in value at Apple. The carriers advertise up to $190, but to get the real figure, you have to use online tools that have grown increasingly complex in recent years. They now may ask for the model name, storage capacity, color, and current provider. This makes it harder to shop around. Some, but not all, Android phones are also available for trade-in at Apple.

Greater availability: The stockrooms in Apple Stores are flush with iPhones, so you have a better chance of finding the model you want in your choice of color and storage capacity. And, if not, you can have it shipped to you free. Depending on your location, you might even be able to get 2-hour delivery.

The Apple Store also has a wider range of accessories than most carrier stores.