Above Avalon Episode 35: Buying a New iPhone Every Year

Along with launching new iPhones, Apple began a new service in the U.S. called the iPhone Upgrade Program. Episode 35 takes a closer look at the program and what it was like to purchase an iPhone 6s Plus through the new service. After discussing some of the lesser-known details of the plan, I then look at how leasing instead of buying iPhones impacts Apple. Ultimately, leasing and upgrading iPhones every year has a major impact on the iPhone development cycle, a cycle which I view as similar to the one Pixar uses when developing films. We conclude with a talk on the financial implications of leasing phones including why revenue may be deferred and how residual iPhone values could change due to grey market supply/demand.

Show Notes:

The Pixar iPhone - Above Avalon

Thoughts on the iPhone Upgrade Program - Above Avalon

Above Avalon membership information (access to an exclusive daily email about Apple) - Above Avalon

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