Upgrading an iPhone can happen over two levels –
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Number 1 – If you are subscribed to the Apple Upgrade program
You are subscribed to the Apple upgrade program, in which case, you can always trade-in your older iPhone, get the newer model, and simply pay the difference. This turns out to be very economic, and people who are loyal to the iPhone product generally tend to subscribe to this program. In such cases, upgrading the iPhone to a newer generation is a given.