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The upgrade program cost including the buyout is the exact same price as if you paid it all upfront.

Interesting. So everyone should be doing the lease.

No, because then you pay full price. If you buy your iPhone at a third party retailer the price is much lower.

The iPhone Air is €1329 at Apple and €849 at retailers.

I don’t think American retailers do the subscription model anymore, which is what would let them subsidize phones like this.