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How to Find Out if You Can Upgrade Your iPhone
Check the fine print before you try to upgrade
By Sam Costello Sam Costello Writer Ithaca College Sam Costello has been writing about tech since 2000. His writing has appeared in publications such as CNN.com, PC World, InfoWord, and many others. lifewire's editorial guidelines Updated on December 20, 2020 Tweet Share Email Tweet Share Email iPhone & iOS Switching from Android What to Know
The iPhone subsidy system no longer exists. To see if you're upgrade-eligible, contact your wireless carrier or check your status with Apple. Dial *639# if you're an AT&T customer or #874 if you have Verizon. On Sprint or T-Mobile, log in to your account to check your status. Eligibility factors: No new phone in over 2 years, switching to another carrier, paid off your iPhone, or purchase plan allows for upgrades. This article explains how to determine your iPhone upgrade eligibility if you're making monthly payments for your device to Apple or your carrier. How to Check Your iPhone Upgrade Eligibility
Figuring out who's eligible for an upgrade is a little different than it used to be when there was an iPhone subsidy system (see below). You'll need to check with your phone company (or Apple, if you bought your phone directly). Generally speaking, you're eligible to upgrade to a new iPhone if you: Haven't bought a new phone in two years or more.Switch to a new phone company.Pay off the balance on your current iPhone.Use a monthly purchase plan that allows for regular upgrades (often after 12 months). Check whether you can upgrade your iPhone with the following tools: Apple Upgrade Program customers: Check your status at Apple's website. AT&T customers: Dial *639# and you'll get a text message with your status. Sprint customers: Visit https://www.sprint.com/ and login into your Sprint account. T-Mobile customers: Log in to your T-Mobile account or the T-Mobile app using these instructions. Verizon customers: Dial #874 and you'll get a text message with your status. The End of the iPhone Subsidy System
Phone companies used to discount, or subsidize, the price of the phones they sold. The price they advertised for a new phone was almost never the actual cost of the phone. For example, if a new iPhone actually cost US$699 from Apple, phone companies would often sell it for $399. The companies paid Apple the difference between the full price and what they charged customers. As part of this deal, phone companies made customers sign contracts—often for two years—that locked them into using that phone company. This strategy made financial sense for the companies because they make most of their money on monthly voice and data plans, and customers often stayed loyal after their contracts ended. Under the subsidy system, customers were usually eligible to upgrade to a new iPhone every two years. The subsidy system no longer exists. Almost no phones are sold with subsidies these days. Instead, customers pay full retail price for their phones. That's why the iPhone 12 Pro costs $999 and up, instead of a more appealing price hundreds of dollars lower. To make up for paying more money upfront, customers rarely sign contracts anymore. Instead, they now pay month-to-month and are free to switch phone companies and upgrade to new phones more often. Buying iPhones on the Installment Plan
The most common kind of phone-company contract these days relates to how you buy the phone. This is the contract that determines whether your iPhone upgrade eligible. Because customers now pay full retail price for their phones, and because not everyone wants to plunk down $1,000 for a phone, all the phone companies—plus Apple—sell the iPhone in monthly installments. Instead of spending $1,000 upfront for an iPhone, you can spread the cost out over 24 monthly payments that are charged with your regular bill. With this system, you can upgrade to a new iPhone when you've paid off the old one or at a point defined by the company selling the phone. For example, many monthly purchase plans let you upgrade to a new phone once a year, even if the old phone isn't paid off. You simply trade in the old phone and keep paying for the new one. Learn more about how Apple sells iPhones with monthly payments in The Apple iPhone Upgrade Program: How It Works. Was this page helpful? Thanks for letting us know! Get the Latest Tech News Delivered Every Day Subscribe Tell us why! Other Not enough details Hard to understand Submit More from Lifewire What You Need to Know About the True Cost of an iPhone The 7 Best Cheap Cell Phone Plans of 2022 All About the Apple iPhone Upgrade Program 10 Ways to Speed Up a Phone That's Running Too Slowly How to Unlock a Phone From Any Carrier How to Unpair Apple Watch What Does It Cost to Switch Your iPhone to Verizon? The 8 Best Cell Phone Plans of 2022 How to Set up a New iPhone The 7 Best Family Cell Phone Plans of 2022 The 7 Best Senior Cell Phone Plans of 2022 What Phone Company Is Best for the iPhone? How to Update iPhone Carrier Settings How to Make Wi-Fi Calls on Your iPhone Do Unlimited Data Plans Include iPhone Personal Hotspot? How to Pair and Connect an Apple Watch With a New iPhone Newsletter Sign Up Newsletter Sign Up Newsletter Sign Up Newsletter Sign Up Newsletter Sign Up By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. Cookies Settings Accept All Cookies