Perhaps the biggest difference in the way you bought your last iPhone compared with the way you could buy an iPhone 5s or 5c is in the introduction of carrier upgrade plans.
This year, nearly all of the major US telcos have announced some sort of upgrade program, be it T-Mobile's Jump program, AT&T's Next or Verizon's Edge, the option is there to buy a new iPhone today and upgrade to an even newer model this time next year.
But should you do it?
Many would agree that these plans seem designed for lovers and owners of the iPhone. While the other phone manufacturers do have an annual product update to most of their handsets range, none make the same kind of impact on Western society that a new iPhone makes.
This makes it very tempting to sign up to a upgrade plan and to be sure that you can jump on the latest model each and every year.
But when you look at what you are actually paying for, you may think twice about the so-called advantages of these plans.
1. You give your old phones back. Each of the carriers that has introduced an upgrade plan will require you to turn in your old phone to upgrade to your new phone. Now, this might sound like it makes some sort of sense, except for the fact that you will have been paying for that phone for the past 12-months. This means you will have paid at least 50% of the retail price to the carrier and have no phone left to show for it.
Some argue, that this works out about the same as if you had bought the phone outright and then tried to sell it again after 12-months, and for some solitary types this might be the right logic. For many others, there is still a lot of value in holding on to the old phone, and passing it on to a family member who needs it.
2. You could pay extra for the privilege. T-Mobile is explicit about its extra Jump fees, charged at $10 per month for the life of the plan. Verizon charges a once off $35 activation fee when you sign up.
3. Upgrade plans are not no-contract. You may be able to switch to a newer phone sooner, but you will be contracted to the telco for at least 24-months -- at that's only if you don't upgrade. If you trade-up to a an updated phone model, the contract resets and you will be locked-in for another 2-years in most cases.
All in all, these plans require you to do some thinking about what is important to you, and what you are willing to spend to stay on the bleeding edge of technology. For some customers, these plans are a perfect solution to a lingering concern. But for many others, an upgrade plan is just an expensive leasing option that doesn't offer a valuable return.
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