Apple’s surprise plan to boost iPhone sales is working

“Analysts were quick to see the benefits for Apple in the company’s new iPhone Upgrade Program, the one announcement that took everybody by surprise at Apple’s Sept. 9 iPhone event,” Philip Elmer-DeWitt reports for Fortune.

“What they couldn’t foresee was whether Apple’s customers would see the benefits to the buyer. Piper Jaffray’s Gene Munster, for example, predicted that 15% of new iPhone customers would opt for what is, in effect, a 24-month lease,” P.E.D. reports. “He was way off.”

“In a note to clients issued late Monday, Munster reported that of 188 iPhone 6S buyers surveyed in mid-November, 70 people (37%) chose the new program,” P.E.D. reports. “By the end of the quarter, Munster believes, the actual rate could turn out to be as high as 50%.”

Read more in the full article here.

MacDailyNews Take: Well, hello, halved iPhone replacement cycle!


  1. The advantages of the Apple program is:
    1. Unlocked phone – you can switch to any provider when you want.
    2. Unlocked phone – you can use international SIMs when traveling abroad. A lot cheaper than roaming charges.
    3. Save money by keeping the phone for 3 years instead of 2.
    4. Or getting a new iPhone every year (you will have to keep paying though).
    5. Automatic AppleCare plus.

    AT&T’s new buy one get one free is in direct response to this. Although tempting I will likely go for Apple’s program since gives me an unlocked phone.

  2. Stupid plan. Apple should be lowering the price of the device in order to sale more, not implementing plans that lock customer into the next version of the phone. “More for less”, that’s the cry the one percenters have driven into everyone’s mind. People will realize they are paying 600, 700, 800 dollars for a phone, a phone, and will soon come to their senses. Also, the crazy service charges will wake people up, $1200 a year to use a phone. Add, a family of 4, 4800 dollars for phone use per year, 2400 dollars (min) in device charges. Out of a pay check almost 5000 dollars for phone every year plus device.

    Wall Street is correct, unless salaries are going up for the other 99%, sells will fall off. Upgrades will not happen every one or two years no matter what is added to the device.

    At 600, 700, 800 dollars unlimited service should be included in the cast of the device. Apple needs to build a network so they can continue to charge these ridiculous prices.

      1. It would be funny if these rants are actually an MDN staffer keeping this forum entertaining.

        I think half the reason I return to this web site is it’s so darn fun to read the comments.

    1. I love you “off-brand” name posting idiots whose names appear here in all shades on an Apple or Tim Cook teardown. We know what you’re trying to do and ignore your pointless, ignorant and probable paid-by-Samsung rants. It’s simple – you don’t like Apple then go and buy elsewhere.

      1. They just like to stick pins into people to see them jump, like third-grade classroom bullies. Then they laugh and laugh, because it feels so good to do so compared with the rest of their miserable, unfulfilled lives. They are party-crashers and impostors. They tend to go away, though, once they obtain meaningful jobs or a girlfriend of any kind.

    2. Making things up is useful to confuse the gullible, but a little fact checking before posting might better inform the customer. I have an AT&T Family Sharing plan with three iPhones and three iPads on it that costs ~$250 a month. Not cheap, but with virtually unlimited data for our usage, it’s nowhere near your simple 4X cost for a single user.

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