Is the Apple Upgrade program a good deal or a rip-off? I asked ChatGPT to crunch the numbers and here's the verdict

(Image credit: Tom's Guide / John Velasco) This week, Apple revealed its new Apple Upgrade Program that lets you lease several of the company's devices, including iPhones, Macs, Apple Watches and iPads.With fixed 12-, 24 or 36-month terms, you're locked into paying a monthly rate for your chosen device until the term is up or you decide to upgrade. Abandoning the lease early is possible, but there are a number of penalties and fees associated with doing so.Is the Apple Upgrade Program a good deal versus buying the phone outright or getting it from a carrier? I crunched the numbers, but also turned to ChatGPT to find out if it's a ripoff or worth your dollar.iPhones and Apple WatchesHere's how much an iPhone or Apple Watch will cost you over a 24-month term. If you want to keep the device at the end of the lease, you'll need to pay the remainder. Swipe to scroll horizontally Apple Upgrade Prices - iPhones and Watches Device Upfront cost Per month cost Total after 24 months iPhone 17e $599 $17.99 $431.76 iPhone Air $999 $28.99 $695.76 iPhone 17 $799 $22.99 $551.76 iPhone 17 Pro $1,099 $31.99 $767.76 iPhone 17 Pro Max $1,199 $34.99 $839.76 Apple Watch Series 11 $399 $11.99 $287.76 Apple Watch Ultra 3 $799 $24.99 $599.76 Macs and iPadsAnd here's how it looks for Macs and iPads, which are eligible for a 36-month lease. This table specifically looks at a 24-month lease. Swipe to scroll horizontally Apple Upgrade Prices - Macs and iPads Device Upfront cost Per month cost Total after 24 months iPad Air $749 $15.99 $383.76 iPad Pro $1,199 $24.99 $599.76 iPad mini $599 $11.99 $287.76 MacBook Air $1,299 $24.99 $599.76 MacBook Pro $1,999 $38.99 $935.76 iMac $1,499 $28.99 695.75 Mac Studio $2,499 $48.99 $1,175.76 The fine print (Image credit: Hadrian | Shutterstock)There are two big caveats to Apple's leasing program. The first is that, according to the terms of service, if you miss three consecutive payments, Klarna (the company managing the lease) will terminate the contract, and the customer will owe the remaining balance.The second is that AppleCare+ is not included with the lease. You could roll the dice and not subscribe to AppleCare+ but you are liable for any damage, per the fine print.Get instant access to breaking news, the hottest reviews, great deals and helpful tips."Insurance is not included in your lease, and you may incur damage fees if the device is lost, stolen, or not returned in the condition required by the lease."AppleCare+ ranges in cost from $2.99 (Watches) up to $9.99 (iPhone) per month depending on your device. There are annual payment options as well.Here's the iPhone and Watches table again with how much a 24-month lease would set you back with AppleCare+. Swipe to scroll horizontally Apple Upgrade Prices - iPhones and Watches Device Upfront cost Per month cost Total after 24 months Total with AppleCare+ iPhone 17e $599 $17.99 $431.76 $671.52 iPhone Air $999 $28.99 $695.76 $935.52 iPhone 17 $799 $22.99 $551.76 $791.52 iPhone 17 Pro $1,099 $31.99 $767.76 $1,007.52 iPhone 17 Pro Max $1,199 $34.99 $839.76 $1,079.52 Apple Watch Series 11 $399 $11.99 $287.76 $359.52 Apple Watch Ultra 3 $799 $24.99 $599.76 $671.52 As you can see, over two years, the price goes up by a few hundred dollars and in some cases exceeds the initial price of the iPhone or Apple Watch.Yes, that would be the case if you weren't leasing an iPhone. AppleCare+ is a protection plan that you subscribe to a monthly or annual basis.However, as mentioned, it may be more necessary for a leased device than one you own because of those potential damage fees. You could also be hit with upgrade fees or substantial termination fees if you try to end the lease early.What about trade-ins?Another factor against Apple's lease program is that, because you don't own your device, you won't get any credits for trading in your older device, which could lower your monthly payments to something lower than you would get from the Apple Upgrade program.Let's take the iPhone 17 Pro as an example.If you're upgrading from an iPhone 16 Pro, you could get as much as $560 in trade-in value, which would lower the cost to $22.45/month for 24 months.If you were upgrading from an iPhone 15 Pro, you could get as much as $410 in trade-in value, which would lower your monthly bill to $28.70.While you can trade in your current phone and get credit in the Apple Upgrade Program, it's a one-time thing, as you wouldn't own your phone from then on. Swipe to scroll horizontally iPhone 17 Pro monthly fee Row 0 - Cell 0 Monthly fee/24 months Apple Upgrade Program $31.99 Traditional financing (w/iPhone 16 Pro trade-in) $22.45 Traditional financing (w/iPhone 15 Pro trade-in) $28.70 Traditional financing (w/iPhone 14 Pro trade-in) $32.45 What ChatGPT had to say (Image credit: Shutterstock)According to ChatGPT, the Apple Upgrade Program is not a rip-off, but it may not be the cheapest way for you to obtain an Apple device."For most people it's more expensive than buying and later selling or trading in the device. The biggest winner is Apple, because leasing encourages customers to stay on a continuous upgrade cycle," the AI said.For those who keep their devices for three or more years not be a good deal, especially since Apple devices tend to retain their resale or trade-in value. Plus, the leasing program means that you don't own the device.Interestingly, I actually prompted ChatGPT as well as Gemini and Claude and none of them mentioned AppleCare+ beyond noting that it is no longer bundled with the Apple Upgrade Program the way it was with the iPhone Upgrade plan.Unless you upgrade annually or money isn't an issue for you, Apple Upgrade Program may not be the right fit for you. I'm a major proponent of owning your devices and this program doesn't let you do that until the end of the terms. Follow Tom's Guide on Google News and add us as a preferred source to get our up-to-date news, analysis, and reviews in your feeds. More from Tom's GuideIs your old fitness tracker good enough? 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