Upgrade fee (Why)?

[Paddiewack]

This is really a question rather than a moan. I fancied upgrading my iPhone 12 to the new iPhone 15 pro max with the same SIM card and number. Three offered me a good price with no upfront payment. BUT wanted £492 early upgrade fee. When I wanted to trade in my current phone the website is continually down which is kind of neither here or there I suppose.I know all networks will do it this way so there is no criticism solely towards Three. But my question is why do they charge this? I would be renewing my two year contract at £4 per month more for the same allowances. Anyway I’m passing and sticking with my original iPhone which will be perfectly fine and my wife is secretly happy as it’s cheaper. 

Any clues anyone? 

[sc1999]

You pay for the phone over the length of your contract. It could be that the fee is actually the balance of the original cost of the phone. 3 have now changed the way they charge and the cost of the phone is listed separately to the airtime contract. This means that once the phone element has been paid your monthly payment will only be airtime.

[Paddiewack]

No the phone cost is something like £45 monthly plus the airtime contract. It baffles me but I’m sure there’s a perfectly logical explanation. It’s just that I can’t think of one. lol 🤔

[sc1999]

This explains upgrade fee.

https://community.three.co.uk/t5/Devices/Upgrade/m-p/18145

[Paddiewack · Accepted solution]

Thank you. Now I understand!