Apple is shaking up how customers buy its tech. Starting today, the company is launching Apple Upgrade, a brand-new leasing program in the U.S. run in partnership with Klarna. Instead of buying a device outright or financing it, shoppers can now lease almost any flagship Apple product, from iPhones and Macs to iPads and Apple Watches, for a predictable monthly fee.
With this move, Apple is officially phasing out its legacy iPhone Upgrade Program and standard iPhone Payments options for new sign-ups, consolidating everything under one flexible system.
How the New Leasing Model Works
Much like a standard car lease, Apple Upgrade lets you pick a fixed term length based on the device you choose:
- iPhones & Apple Watches: 12-month or 24-month terms
- Macs & iPads: 24-month or 36-month terms
The barrier to entry is surprisingly low. Monthly prices start at $17.99 for iPhones, $11.99 for iPads and Apple Watches, and $24.99 for Macs.
Applying is straightforward: you can sign up online, through the Apple Store app, or at a physical retail store. Klarna handles the application process using a soft credit check, so checking your eligibility won’t ding your credit score.
What Happens When Your Lease is Up?
When your term ends, you have three clear choices:
- Upgrade: Swap your old hardware for the newest model.
- Keep it: Pay the remaining amount of the difference of your monthly installment and the initial price of the device so that you can own it entirely.
- Walk away: Give back the working hardware and terminate your service plan.
Key Fine Print to Know
- No Bundled AppleCare: Unlike the old iPhone Upgrade Program, protection plans aren’t built into the base price anymore. You will need to add an AppleCare+ subscription separately if you want coverage.
- Klarna Integration: You will manage your account, track upcoming payments, and view remaining balances inside the Klarna app.
- Perks & Carrier Rules: Apple Card users still net 3% Daily Cash on every monthly payment. However, if you are leasing an iPhone, you will need to activate it with AT&T, T-Mobile, or Verizon.
What’s Included (and What’s Not)
While most major hardware is eligible, like the flagship iPhone line, MacBook Air, MacBook Pro, and iPad Pro, Apple is keeping entry-level gear off the program for now. Budget-friendly options like the iPhone 16 base models, Apple Watch SE, MacBook Neo, and entry-level Mac mini aren’t eligible for leasing.
If you are already enrolled in the old iPhone Upgrade Program, don’t worry: your current agreement stays active until you are ready to trade in or upgrade.
