Jon Brodkin, writing for Ars Technica:
Apple is now selling iPhones on installment plans, giving customers the ability to pay a monthly charge for a phone and upgrade to a new one every year. The four major carriers in the US already offer phones on installment plans, but Apple’s new “iPhone Upgrade Program” provides yet another option that might be better for certain customers.
Apple’s plan comes with AppleCare+ and is a little bit more expensive than the other carriers, but personally, I wouldn’t touch any of these plans with a ten foot pole. I’m more than willing to purchase my phone from AT&T in order to get two-year contract pricing. I’m not concerned about getting “locked in” as many carriers will pay your early termination fee and I’d rather pay more upfront in order to save money in the long run.