Apple has officially introduced a new leasing program called Apple Upgrade, which aims to make it easier for customers to get their hands on the latest iPhone, Mac, iPad, and Apple Watch models. The service launched today in the United States and operates similarly to a car lease — allowing users to keep the device at the end of their subscription period, pay off the device early, or upgrade to a new model before the term ends.
How the program works
Apple Upgrade is available both online and in physical Apple retail stores. Klarna serves as the financial backer, and users must be approved via a soft credit check. The program offers 24-month leases for iPhones and Apple Watches, while Mac and iPad plans run for 36 months. Leasing prices start as low as $17.99 per month for the iPhone 17e, $11.99 for Apple Watch Series 11, $24.99 for the MacBook Air, and $11.99 for the iPad Air. At the end of the lease term, customers have three options: upgrade to the latest generation, purchase the device with a one-time payment, or return it and exit the program.
This new service replaces the previous iPhone Upgrade Program, which first launched in 2015 and is no longer accepting new enrollments. A key difference is that Apple Upgrade covers a wider range of devices — not just iPhones — and does not include AppleCare, the warranty extension plan that was also recently affected by price hikes.
Context: Apple's pricing strategy
The launch of Apple Upgrade comes just weeks after Apple increased prices on its MacBooks, iPads, and other devices in response to ongoing memory and storage shortages. While iPhones were spared from the latest round of price hikes, current Apple CEO Tim Cook warned last month that the situation had become unsustainable, suggesting that the upcoming iPhone 18 series could be more expensive than expected when it launches later this year.
Apple has historically positioned itself as a premium brand, but rising component costs and global supply chain disruptions have forced the company to adjust its pricing. The leasing program is seen as a way to maintain customer loyalty and accessibility without lowering device prices directly. By offering low monthly payments, Apple can appeal to budget-conscious consumers who might otherwise turn to carrier installment plans or third-party financing.
Comparison with carrier plans
Many US carriers have offered device upgrade plans for years, often requiring customers to trade in their current phone after 12 or 24 months. Apple's new program is intended to provide an in-house alternative to these carrier offerings. However, Apple Upgrade does not include AppleCare, whereas some carrier plans include extended warranty or insurance. Customers will need to purchase AppleCare separately if they want coverage.
Another notable difference is the flexibility at the end of the lease. While carrier plans typically require a trade-in to upgrade, Apple Upgrade allows users to keep the device or pay it off entirely. This could appeal to users who want to own their device outright after the lease period, or those who prefer to upgrade every generation.
Financial implications and credit requirements
The partnership with Klarna, a Swedish fintech company specializing in buy-now-pay-later services, indicates Apple's shift toward more flexible financing. Klarna will handle the credit checks and monthly payments. Customers will need to pass a soft credit check, which does not affect their credit score. The lease amounts are fixed for the term, with no interest charges mentioned — but it's unclear if there are fees for early payoff or late payments.
Some code discovered in the iOS 27 beta last week suggests that Apple is working on a way to lock financed iPhones out of apps if it detects that the user is in arrears. This has raised privacy and control concerns, though Apple has not officially confirmed such a feature. The company emphasized that the program is designed to make devices more accessible, but critics note that locking a device for missed payments could create a modern version of the "bricking" problem.
Historical context: The original iPhone Upgrade Program
The original iPhone Upgrade Program, launched in 2015 under CEO Tim Cook, allowed customers to get a new iPhone every year by paying a monthly fee that included AppleCare+. That program was limited to iPhones and required a 24-month commitment with a trade-in after 12 months to upgrade. Over the years, it became popular among Apple enthusiasts but also faced criticism for its lack of flexibility and high total cost compared to buying outright.
By replacing it with Apple Upgrade, Apple is broadening the scope to include Macs, iPads, and Apple Watches — devices that have longer upgrade cycles and higher upfront costs. This could help drive sales of these products, especially as the average consumer holds onto a Mac or iPad for several years. The removal of AppleCare also reduces the monthly cost, making the program appear more affordable.
Market reaction and future implications
Analysts have mixed reactions to the program. Some see it as a smart move to smooth out Apple's revenue and encourage more frequent upgrades, especially for iPhones and Watches. Others worry that it could cannibalize sales of higher-margin accessories like AppleCare and reduce the incentive for customers to buy devices outright.
The program's success will depend on adoption rates and whether customers find the monthly payments attractive compared to carrier deals or credit card financing. Given that Apple's devices are already expensive, a leasing option could attract a new segment of customers who previously could not justify the upfront cost. However, the lack of AppleCare coverage may be a dealbreaker for those who want protection against accidental damage.
As the tech industry faces economic headwinds, Apple's move to introduce a leasing program mirrors similar strategies by other hardware manufacturers. For example, Google has offered Pixel Pass, and Samsung has its own upgrade program. Apple's version stands out because it covers a wider range of devices and offers more end-of-lease options.
In the coming months, we may see Apple expand the program to other countries or add device categories like AirPods or HomePods. For now, the US launch is a test run, and the company will likely adjust terms based on customer feedback and financial performance.
Leasing is not new for Apple — the company has long offered financing through Apple Card and third-party lenders. But the Apple Upgrade program is the first to bundle multiple device types into a single lease structure, signaling a shift toward a subscription-like model for hardware. This could have significant implications for how consumers think about owning technology: instead of a large one-time purchase, they may begin to treat devices as a recurring expense.
As always, customers should read the fine print carefully. While the monthly prices seem low, the total cost over the lease term may be higher than buying outright. And missing payments could have consequences beyond just losing access to the device, including potential damage to credit scores. Apple has not yet disclosed all terms publicly, so early adopters should proceed with caution.
The Apple Upgrade program is now live in the United States. Interested customers can visit Apple's website or stop by any Apple Store to apply. With prices rising across the lineup, this leasing option may be exactly what some consumers need to stay current with the latest technology without breaking the bank.
Source: The Verge News