Comparing Apple Upgrade leasing to Verizon contracts for iPhone cost savings

Apple Upgrade, introduced in partnership with Klarna, offers lease terms of 12 to 24 months for iPhones, with monthly payments starting at $18 for the iPhone 17e and the option to buy the phone outright after the lease. Verizon’s promotions label certain iPhone models as "free" when customers sign up for three-year Unlimited plans, but these deals demand specific plan levels and the activation of a new line, which can lock users into higher monthly fees.

Using a 256 GB iPhone 17 Pro as a case study, the Apple lease costs $32 per month for two years, totaling $768, plus a $331 final payment to own the phone, while Verizon’s arrangement adds a modest device credit of about $2.77 per month but requires a $3,420 plan cost, resulting in a total near $3,520. The piece highlights that Apple users must still pay for a carrier plan, though cheaper alternatives like Verizon Simplicity at $30 per month can reduce overall spending.

It also points out that Verizon’s Flex Upgrade option allows early upgrades at the expense of promotional credits, and that trade-in values can slightly lower costs for both programs. Overall, Verizon’s approach spreads costs over a longer period but ends up costing roughly $1,000 more than Apple’s two-year lease when all fees are considered.