Leasing an iPhone through Apple Upgrade can mean lower monthly payments, but it is not automatically the cheaper choice for people who upgrade every year. Buying the phone and trading it in may cost less overall, because the owner can use the phone’s resale or trade-in value towards the next model.

The article compares 12-month lease costs with purchase prices and estimated Apple trade-in values, while noting that future trade-in offers could change. Its example gives the iPhone 18 Pro a $1,199 purchase price and a $600 lease cost; an assumed $785 trade-in would make buying about $186 cheaper for the year. Apple Upgrade also lets customers buy out a leased phone at the end of the term, and the comparison should account for its requirement to enrol through AT&T, T-Mobile or Verizon, whose plans may cost more than alternatives.