Apple Upgrade Leasing May Not Beat Buying and Trading for Annual iPhone Upgraders

Apple Upgrade requires customers to connect their iPhone to AT&T, T-Mobile or Verizon at enrollment, Engadget reported. Monthly payments vary by model. The iPhone 17e with 256GB storage starts at $699 and costs $30 a month, or $360 over a 12-month lease. The iPhone 17 with 256GB is listed at $899, or $929 if bought outright and activated later with another carrier, and costs $37 a month, or $444 over 12 months. The iPhone Air with 256GB starts at $1,099 and costs $46 a month, or $552. The iPhone 18 Pro with 256GB starts at $1,199 and costs $50 a month, or $600. The iPhone 18 Pro Max with 256GB starts at $1,299 and costs $54 a month, or $648. The iPhone Duo with 256GB starts at $1,999 and costs $83 a month, or $996. Engadget noted that prices for older devices rose in September 2026 after Apple's event, and that higher-storage models cost more per month. It also said most major carrier plans cost more than MVNO plans, so mobile service costs should be included in the true expense.

The central difference is ownership. Buying an iPhone leaves the customer with a device that can be traded toward the next model, while a lease requires returning the phone at the end of the term and provides no trade-in credit. In one example from Engadget, a customer buys an iPhone 18 Pro with 256GB for $1,199. Apple currently offers $785 for an iPhone 17 Pro in good condition. Assuming similar trade-in values next year, trading an iPhone 18 Pro toward a theoretical iPhone 19 Pro would produce an effective cost of $414. A 12-month lease on the same phone costs $600, so buying and trading would save about $186 in that example.

Engadget calculated the trade-in value each model would need after a year for buying to match the cost of leasing and returning the phone. The break-even amounts are $339 for the iPhone 17e, $455 for the iPhone 17, $547 for the iPhone Air, $599 for the iPhone 18 Pro, $651 for the iPhone 18 Pro Max and $1,003 for the iPhone Duo. If a customer receives more than that amount on trade-in, buying is cheaper; if less, leasing and returning is more cost-effective. By comparison, Apple currently offers up to $270 for the iPhone 16e and $430 for the iPhone 16, making leasing the better option for those models, according to the analysis. Apple offers $585 for the iPhone Air, $785 for the iPhone 17 Pro and $885 for the iPhone 17 Pro Max, making trade-in better for the premium phones. There is no previous-generation equivalent for the iPhone Duo.

Next year's trade-in values are not guaranteed. Engadget said Apple could offer less for current models than the break-even figures suggest. That uncertainty is one argument in favor of leasing, because a customer can simply return the phone if Apple becomes less generous.

Leasing also includes a buyout option that can change the comparison. In the Apple Upgrade program, customers have three choices at the end of the term: return the phone and start a new lease, buy it out for its original price minus the lease payments already made, or return it and leave the program. For the iPhone 18 Pro example, the buyout after 12 months would be about $599 before taxes. If Apple then offered $785 for the phone as a trade-in, buying it out would put the customer about $186 ahead compared with returning it. The net cost for the year would be $414, the same as buying the phone and trading it in. If the trade-in offer were lower than the buyout price, returning the phone would make more sense. Engadget said one advantage of leasing is flexibility.