The iPhone Upgrade Program is a success

In the US, Apple launched the iPhone Upgrade Program, which allows you to pay about $ 30 a month (depending on model chosen) to always have the latest iPhone on the market. The analyst Gene Munster has analyzed how American consumers have appreciated this service.



According to Munster, only 15% of users chose to activate the iPhone Upgrade Program, while the remaining 75% opted to purchase classic (paying all at once) or for purchase through the offerings of various operators.

These data are, however, contradicted by Fortune, as well as further analysis shows that 70% of users who purchased the iPhone 6s chose to do so through Upgrade Program.

According to Fortune, the iPhone Upgrade Program is a bargain for all: for the user, who practically has a lease with the possibility of having every year just released the new iPhone, and Apple, that with this service gets many advantages.

These include:

  • They sell more AppleCare agreements (including in the program)
  • It builds loyalty customers indefinitely|
  • It halves the update cycle of a typical iPhone (no longer 24 months, but 12)
  • It disposes of a large number of iPhone used, can regenerate and re-sell at a discount
  • You have more control over the market of second-hand iPhone
  • It has the ability to increase the profit margin from 50% to 55%
For Fortune, short-well 75% of users will opt for this solution.


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