Which Saves You The Most Money On An iPhone?

As iPhone costs continue to rise, many people are seeking alternatives to the big upfront price tags. The newly launched Apple Upgrade program, which lets you lease Apple products for set periods, is designed to lessen the impact on your wallet while also eliminating FOMO surrounding the latest models. But is it really the best deal available?

On the surface, carriers like Verizon seem to tout better bargains to lower the price of your next iPhone; there’s even an entire section of Verizon’s site proclaimed as “free phones.” However, the savings aren’t quite as clear-cut as they first seem. For the purpose of this discussion, we presume you’re looking to eventually own your phone outright. Otherwise, it’s an apples and oranges comparison since Verizon doesn’t offer phone leasing akin to Apple Upgrade.

Apple Upgrade is a revamped version of Apple’s previous iPhone Upgrade program, with a few changes. Done through a partnership with Klarna, it allows customers to lease Apple products (including Macs, iPads and Apples Watches) for lease terms between 12 and 36 months. For iPhones specifically, the periods range between 12 and 24 months. Pricing is dependent upon the iPhone model you select, with costs beginning at $18/month for the iPhone 17e.

Unlike the previous iPhone Upgrade program, Apple Upgrade functions as a lease, not a pay-to-own plan — though you can still purchase the leased device when the contract runs out. When your lease period ends, you’ll have three options: return your current device and upgrade to a new one, leave the program and return your device, or buy the device with a one-time payment for any outstanding balance. Apple Upgrade does not come with AppleCare protection like its predecessor did; you’ll need to add that separately if desired.

The fine print of the Verizon deals shows that they all have specific plan requirements for three years. For the phones Verizon bills as “free,” which includes the iPhone 17 and 17e but not any Pro models, customers are required to have an Unlimited plan dependent on the model. The Air, for example, is only “free” with Unlimited Ultimate; the 17 requires Ultimate or Plus, while the 17e can utilize any Unlimited plan. For a single line, prices across the three Unlimited tiers range between $65 and $95 a month, assuming you set up the paperless billing and automatic payment discounts. This means that over the course of 36 months, you would spend between $2,340 and $3,420.

For phones not lumped into the “free” category, you’ll pay a small amount for the device each month depending on storage ($13.88/month for a 1TB iPhone 17 Pro, for example). Most of the higher-cost models require an Unlimited Ultimate plan if you aren’t trading in a device, with trade-ins bringing better discounts. 

For both free and discounted phones, these deals also necessitate that you start a new phone line. You can pay for one line total by canceling your previous one, but this means getting a new phone number. Verizon’s credits are tied to each line’s number, so you lose them if you cancel or transfer. 

Let’s use a 256GB iPhone 17 Pro with no trade-in as an example. A 24-month Apple Upgrade lease for the device is $32 a month, totaling $768. To keep it after that, you’ll need to pay the difference of $331 to reach the total upfront cost of $1,099. 

With Verizon, you would pay $2.77 a month for 36 months, totaling just under $100 for the phone itself. That’s alongside $3,420 for the Unlimited Ultimate plan, for a grand total of $3,520. If you already plan to stick with Verizon for the long haul, being locked into a contract is something you’d likely do anyway. However, you may be required to pay for a plan that’s above what you actually need to make the “discount” possible, and Verizon’s contracts last three years compared to Apple Upgrade’s two.

However, with Apple Upgrade, you’ll still need to pay for a phone plan on top of the monthly iPhone leasing fees. Crucially, you aren’t able to utilize a bargain plan from an MVNO like Visible — Apple Upgrade phones must be activated through AT&T, T-Mobile or Verizon. There are other options usable with Apple’s offering, like Verizon Simplicity, which is only $30/month for new customers instead of $65 for Unlimited Welcome. If we use that phone plan’s two-year cost over the same Apple Upgrade 17 Pro lease, the grand total spent is $1,819 to own the phone outright. Verizon offers another option called Flex Upgrade that lets you upgrade your phone after you’ve paid a certain amount, but using this means you forfeit the monthly promo credits. 

Each of these options has their own set of variables that could result in paying slightly less per month. Your payments can potentially be reduced by trading in your old phone before embarking on a plan, with the exact amount depending on your current device and its condition. However, even with those fluctuations taken into account, Verizon’s deals will still cost you over $1,000 more than Apple due to the longer term. The only “advantage” is Verizon spreading the cost over a longer period, versus the eventual lump payment you’ll owe as part of Apple Upgrade.