Don’t Buy An iPhone — Lease It!

The Apple iPhone Upgrade Program is the way to go

Illustrations in this article are by Dall-E 4 based on prompts by the author

It’s that time of year again — the new iPhones are out, and people are asking me which model they should buy. My answer is the same as it has been for several years: none of them! This typically results in a “huh?” to which I respond, “In my opinion, buying a smartphone is, in Vegas parlance, a ‘sucker bet.’ It is better to lease one instead.”

In today’s post, I’ll explain precisely why I continue making this bold statement, then tell you which iPhones I recommend. So, let’s dial into the chaos, shall we?

Follow the money… down the drain

While Apple laptops and desktops retain their value for many years after purchase — for decades, they have led the field in ROI (Return On Investment) — smartphones depreciate rapidly soon after you turn them on. (It’s the equivalent of driving a new car off the lot and watching its value sink by half.) Why does this happen? Here’s the simple answer: while desktops and laptops stay relatively stable regarding feature sets, smartphone manufacturers are constantly adding new features and capabilities. It used to be that you could be OK getting a new smartphone every four to five years, but the pace of innovation now is so intense that it no longer makes sense to shell out $1,000 or more for a phone that will be obsolete in a year!

This is not a case of “planned obsolescence.” Instead, this breakneck pace is a combination of ever-more-powerful chips inside the phone coupled with continuous breakthroughs in camera, display, sensor, AI and other technologies.

The iPhone 16 models introduced last month are a case in point. All the iPhone 16s are vastly more powerful than even the iPhone 15 Pro Max was a year before and are mind-bendingly more capable than iPhones older than the 15 series.

Don’t leave home without it

Smartphones and smartwatches are a rare breed of devices in that they are designed to accompany us wherever we may go. They have become so ubiquitous that a sizeable number of people (typically between the ages of 15 and 30) use the iPhone as their only tech device; they don’t use or need laptops or desktops at all.

Considering that, plus the cost of the smartphones and how quickly they change year over year, it really doesn’t make sense to buy them at all. Instead, the better option is to lease them.

Most people are used to making payments when financing a new iPhone. In the past, telcos routinely hid the actual cost of these devices on people’s phone bills to get them used to paying something every month. Eventually, laws that prevented them from this kind of deception were passed, and now we all know how much the phones really cost. All you have to do is reconcile yourself to always making a monthly payment — as many of us do — and you’re halfway there. Now, all you have to do is sign up for a plan that lets you either pay off the phone in two years (should you choose to do so) or … upgrade every year to the latest and greatest iPhone at no extra charge.

Say yes to Apple and no to AT&T, Verizon & T-Mobile

It turns out that there have been such plans in place for many years; however, I am still surprised at the number of people I interact with who don’t know they exist. While it’s true that the major telcos offer “early upgrade” plans, there are always hidden fees, hidden “gotchas” and restrictions. The best plan, and still the easiest to navigate, is from Apple itself, called the “iPhone Upgrade Program.” (Finally, a name that’s straight and to the point!)

Once you enroll in the program, you’ll be able to get the latest iPhone every year (if desired), which includes AppleCare + with Theft And Loss coverage. The plan works with all carriers.

I’ve been making the same monthly payment for several years, which has allowed me to have each year’s flagship model—the Pro Max—for roughly $60 a month. I think having a phone with a brand-new battery every year is worth it! (I’m kidding, but they do seem to lose their oomph after a year, don’t they?) I am also OK with this arrangement as it is a tax deduction for me, although your mileage may vary.

This year, cheaper is better

Now, we come to what I recommend if you want to move up to an iPhone 16. And that would be… an iPhone 16! (Or, if you prefer a slightly bigger screen, the 16 Plus.) For most years, the Pro and Pro Max models have always been head-and-shoulders above the regular ones, sporting bigger and brighter screens, faster chips, and better cameras. Not this year!

The driving force behind this egalitarianism is Apple Intelligence, which will finally appear with the release of iOS 18.1 later this month. Before the iPhone 16 appeared, the only iPhones that could run Apple Intelligence were the ultra-expensive iPhone 15 Pro Max models. If you have any other iPhone, you’re out of luck.

Now, the entire iPhone 16 lineup can run Apple Intelligence with no sweat. That, coupled with the fact that there are few differences between the regular 16s and the Pro 16s when it comes to their cameras, processors and screens, means that you don’t need a Pro model to get Pro performance. Sweet! Another iPhone 16 perk is case color: the regular 16s come in even more vibrant, satisfying colors than the 15s, while the 16 Pro models are only available in blah-looking grey, white, bronze-like and black titanium. Yawn!

That’s A Wrap!

As revolutionary as the iPhone 16 models are — I think they are the best since the iPhone 6 — there’s already talk about what is coming next year with the iPhone 17 models… and even the 18s in the following year! There has been yet another breakthrough in the chips that power these phones, which will appear with the 17s. Given that, stop throwing your money away, or waiting for “the next big thing,” and sign up for the Apple iPhone Upgrade Program instead! Now, if Apple would only create a similar program for the Apple Watch.

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