Apple expands iPhone "Trade Up" program to cover carrier fees, lowers maximum handset value

According to the revamped iPhone Trade Up webpage, customers looking to upgrade their old iPhone to a new iPhone 6s or 6s Plus are now limited to a maximum $250 trade-in credit. Previously, trade-ins were valued at up to $300 when combined with a 24-month installment loan processed through a partner bank.

Apple has changed tack and is now partnering with U.S. cellular carriers to offer customers an option to put trade-in credit toward monthly fees. Like the original plan, buyers can also use their trade-in money to offset the cost of a new handset.

"Get up to $250 in credit when you trade in your eligible smartphone. Use that credit to lower the full cost of a new iPhone or to reduce the monthly payments with your carrier," Apple's website reads.

Under the new terms, customers can get a maximum of $250 for an iPhone 6 Plus in good condition, down from a previous cap of $300. Trading in an iPhone 6 nets up to $225, while those upgrading from an iPhone 5s can accrue $125 in credit. Older iPhone 5 and 5c models rate $75 and the iPhone 4s trades in at up to $50.

Since monthly payments are now calculated on user-selected carrier financing plans, Apple no longer offers an estimated payment schedule. Further, handsets are locked to the carrier through which it is financed for the duration of the installment term. On the plus side, however, customers are no longer subject to bank regulations like credit checks and minimum financing agreements.

Apple introduced the Trade Up with Installments program in February in a bid to drive upgrade sales. The company's more traditional iPhone Upgrade Program remains active, allowing buyers to spread the cost of a new handset plus AppleCare+ protection over a term of 24 months, with an option to re-up for a new iPhone after 12 payments.