Apple Upgrade vs. Verizon deals: which saves you the most money on an iPhone?

Apple’s new Apple Upgrade leasing program, launched in partnership with Klarna, can save iPhone buyers more than $1,000 compared with carrier deals from Verizon, though the comparison depends heavily on the cost of the required phone plan. Apple Upgrade allows customers to lease Apple products, including iPhones, for terms between 12 and 24 months, with pricing starting at $18 per month for the iPhone 17e. Unlike the previous iPhone Upgrade program, Apple Upgrade is a true lease, not a pay-to-own arrangement, though customers can buy the device at the end of the term with a one-time payment for the outstanding balance. The lease does not include AppleCare coverage, which must be purchased separately.

Verizon’s “free phone” promotions, which cover the iPhone 17 and 17e but not Pro models, require a new line and a three-year contract on an Unlimited plan. Those plans range from $65 to $95 per month for a single line with paperless billing and autopay discounts, totaling between $2,340 and $3,420 over 36 months. For phones that are not free, like a 256GB iPhone 17 Pro, Verizon charges a small monthly device fee alongside the plan, with most higher-cost models requiring the top-tier Unlimited Ultimate plan unless a trade-in is involved.

Using a 256GB iPhone 17 Pro without a trade-in as an example, a 24-month Apple Upgrade lease costs $32 per month, or $768 total, with a final $331 payment to own the phone, bringing the total to the $1,099 upfront price. On Verizon, the same phone costs $2.77 per month for 36 months, or just under $100 for the device, but the required Unlimited Ultimate plan adds $3,420, for a grand total of $3,520. That means Verizon’s deal costs over $1,000 more than Apple Upgrade for the same phone, primarily because of the longer contract and the more expensive required plan.

Verizon’s main advantage is spreading the cost over a longer period, avoiding the lump-sum buyout that Apple Upgrade requires at the end of the lease. However, Verizon’s contracts lock customers in for three years compared with Apple Upgrade’s two, and the “discounts” often force users into plans they might not otherwise need. Trade-ins can lower monthly payments on either option, but the savings do not change the overall gap between the two approaches.

Apple Upgrade users still need a separate phone plan, and the lease requires activation through AT&T, T-Mobile, or Verizon, ruling out budget carriers like Visible. A cheaper Verizon option, such as the Simplicity plan at $30 per month for new customers, can reduce the two-year cost of an Apple Upgrade 17 Pro lease to $1,819 for outright ownership. Verizon also offers a Flex Upgrade option that allows an early device upgrade, but using it forfeits the monthly promo credits. Ultimately, for US consumers who want to own their iPhone, Apple Upgrade offers the lower total cost, while Verizon’s deals favor those who intend to stay on a premium plan for the full three-year term.

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