Previously, iPhone upgrades were not frequent by owners because the smartphones receive software updates for years and the increasing price range of the new models. As iPhone is the company’s predominant revenue generator, in 2018 Apple introduced a new iPhone Upgrade Program to allow users to trade-in their older models for new ones.
Fortunately, for the company that program has been a success. A survey by RBS Capital Markets reveals that in the United States more and more people are opting for the iPhone Upgrade Program to purchase the latest iPhone model every year. Thus, reducing the “holding time” and encouraging more sales.
Apple’s iPhone Upgrade Program – A Success
The Business Insider reported a survey by the RBS which was conducted to analyze Apple’s expected Q4 2020 earning report and revenue. The data revealed that the program is playing an instrumental role in reducing the owners’ hold time of older iPhones and move to the latest model every year.
Additionally, 36% of customers were on Apple’s annual upgrade program, and another 25% said they planned to join. The data signals that Apple could shrink iPhone holding times soon, the analysts said.
Launch in collaboration with Citizen bank, the iPhone Upgrade Program allows registered users to easily purchase a newly launched iPhone every year by choosing a monthly payment plan. The cost of the plan varies according to the select model, currently, the iPhone 12 can be bought for $39.50 per month and iPhone 12 Pro for $49.91 per month under the program. Registered owners are also eligible for a trading-in of the bought model for a better one, after making 12 monthly payments. Learn more about the program here.
Fortunately, American citizens can also purchase the latest iPhone on Apple Card’s 0% financing program. In addition to smartphones, Apple has included other products in Apple Card’s zero-percent financing coverage. It is likely that Apple’s sales did not plummet during the prevailing COVID-19 pandemic due to monthly installment plans which make it easier to own new iPhone models.