Apple Upgrade vs Verizon: The true cost of the iPhone 17 Pro
A new analysis suggests Apple’s leasing programme offers significant savings over carrier contracts, provided consumers do not require specific high-tier data plans.
As iPhone prices continue to climb, consumers are increasingly looking for alternatives to large upfront payments. A comparative analysis published by Engadget examines the financial implications of Apple’s revamped Apple Upgrade programme against carrier deals from Verizon. The study focuses on the total cost of ownership for the iPhone 17 Pro, revealing that the leasing model can save users more than $1,000 compared to traditional carrier contracts.
Apple Upgrade, a partnership with Klarna, allows customers to lease Apple products for terms ranging from 12 to 36 months, with iPhone-specific terms set between 12 and 24 months. Unlike the previous pay-to-own model, this programme functions as a lease, though customers retain the option to purchase the device at the end of the term. Monthly costs start at $18 for the iPhone 17e, while a 256GB iPhone 17 Pro costs $32 per month for a 24-month period.
In contrast, Verizon’s promotional offers, which are often marketed as “free” phones, come with significant strings attached. For the iPhone 17 and 17e, customers must sign up for specific Unlimited plans for three years. These plans range from $65 to $95 per month for a single line, resulting in total costs between $2,340 and $3,420 over the contract term. For higher-end models like the iPhone 17 Pro, Verizon requires an Unlimited Ultimate plan if no trade-in is provided.
Using the 256GB iPhone 17 Pro as a benchmark, the total cost via Apple Upgrade is approximately $1,099. This includes the $768 in monthly lease payments and a final buyout payment of $331. The Verizon option, however, totals around $3,520. This figure comprises just under $100 for the device itself and $3,420 for the required three-year Unlimited Ultimate plan.
The analysis notes that while Verizon spreads payments over a longer period, the extended contract term drives up the overall expense. Additionally, Apple Upgrade does not include AppleCare protection, which must be added separately, and devices must be activated through AT&T, T-Mobile, or Verizon, excluding MVNOs like Visible.
The savings from Apple Upgrade are contingent on the consumer’s data needs. If a user does not require the specific high-tier plans mandated by Verizon for its discounted phone deals, the leasing programme offers a more economical path to ownership. However, those already committed to Verizon’s ecosystem may find the convenience of a single bill outweighs the higher total cost.
