With Apple (NASDAQ:AAPL) expected to debut new versions of its iPhone 6 and 6 Plus next month, many current iPhone users may be faced with an upgrade option very soon. Apple tends to make incremental updates to its devices each year, and it typically pays off. Business Insider says that 12% of the iPhone customer base upgrades to newer iPhones each quarter, and that 20% did so when the iPhone 6 launched. 

But aside from new phone features, a recent report from Piper Jaffray says that smartphone installment plans may actually start driving up iPhone upgrades. Click through the slideshow below to find out more about why installment plans are better for Apple than the old subsidy model and how much Apple may benefit. 

Chris Neiger has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.