Apple has launched Apple Upgrade in the United States, a new Klarna-backed leasing program that lets eligible customers get an iPhone, Apple Watch, Mac or iPad through monthly payments.
The program is available through the Apple Store online, the Apple Store app and Apple Store locations across the U.S.
Lease prices start at $17.99 per month for iPhone, $11.99 per month for Apple Watch, $24.99 per month for Mac and $11.99 per month for iPad.
“At Apple, we put the customer at the center of everything we do,” Karen Rasmussen, Apple’s vice president of the Apple Store online, said in Apple’s announcement. She added that Apple Upgrade gives customers “a more flexible way to pay for the products they love.”
What is Apple Upgrade?
Apple Upgrade is a consumer lease program, not a purchase or traditional loan. It is provided by Klarna and lets customers use eligible Apple products for a set lease term.
For iPhone and Apple Watch, customers can choose 12-month or 24-month lease options. For Mac and iPad, Apple is offering 24-month and 36-month lease options.
At the end of the lease, customers can upgrade to a newer device, buy the device with a one-time payment or return it and leave the program.
That makes the program closer to a car lease than a standard installment plan. You are paying to use the device during the lease period, and you only own it if you choose the buyout option later.
Which Apple devices are included?
Apple Upgrade covers several major Apple product lines, including iPhone, Apple Watch, MacBook Air, MacBook Pro, iMac, Mac Studio, iPad Pro, iPad Air and iPad mini.
Apple’s Upgrade page says eligible iPhone models include the iPhone 17 Pro, iPhone Air, iPhone 17 and iPhone 17e. The iPhone 16 is excluded from the program.
For iPad, Apple lists iPad Pro, iPad Air and iPad mini. For Mac, customers can choose from MacBook Air, MacBook Pro, iMac and Mac Studio. Apple Watch Series 11 and Apple Watch Ultra 3 are also part of the lineup.
How much does Apple Upgrade cost?
Apple says iPhone leases start at $17.99 per month, with the iPhone 17e listed from $17.99 for 24 months.
Other listed starting prices include:
- Apple Watch from $11.99 per month
- Mac from $24.99 per month
- iPad from $11.99 per month
- iPhone 17 from $22.99 per month
- iPhone Air from $28.99 per month
- iPhone 17 Pro from $31.99 per month
- MacBook Air from $24.99 per month
- MacBook Pro from $38.99 per month
- Mac Studio from $48.99 per month
- iPad mini from $11.99 per month
- iPad Air from $15.99 per month
- iPad Pro from $24.99 per month
Customers can lower their initial monthly lease payments by trading in an eligible device when they first enroll. Apple says the trade-in credit is applied by Klarna across the monthly payments for the initial lease term.
How the Klarna application works
Customers can apply online or in an Apple Store after choosing their device and lease option.
Apple says Klarna will review applications with a soft credit inquiry, which will not affect the applicant’s credit score. Applicants must meet eligibility requirements, including U.S. residency, age requirements and creditworthiness.
Apple’s FAQ also says applicants may need to provide details such as legal name, date of birth, phone number, email address, billing address and Social Security number.
Once approved, customers can complete the transaction as usual. In-store buyers can take the device home, while online customers can choose delivery or pickup.
AppleCare is not included
One important detail: AppleCare coverage is not included in an Apple Upgrade lease.
Customers can add AppleCare separately when they enroll, or within 60 days after enrolling. Apple says adding AppleCare can help avoid damage fees when returning a leased device at the end of the term.
Without AppleCare, customers may still be responsible for damage fees if the device is not returned in good working condition.
What happens to the iPhone Upgrade Program?
With the launch of Apple Upgrade, Apple will no longer offer the iPhone Upgrade Program and iPhone Payments in the United States.
Customers already enrolled in the iPhone Upgrade Program may still have options when they are eligible for a new device. Apple says those options can include leasing through Apple Upgrade, using Apple Card Monthly Installments, buying outright or choosing carrier financing.
The change is notable because Apple Upgrade expands the idea beyond iPhone. Instead of only focusing on iPhone upgrades, Apple is now offering lease options across iPhone, Apple Watch, Mac and iPad.
What happens at the end of the lease?
At the end of the lease term, customers can choose from three options.
They can upgrade and return the current device. They can return the device and exit the program. Or they can buy the device outright through a one-time payment from their Klarna account.
Apple says customers do not automatically own the device at the end of the lease. Ownership only happens if the customer chooses the purchase option.
If no action is taken after the lease ends, Apple says customers may continue being charged during the decision period, and Klarna may eventually charge the purchase option fee under the lease.
Why this matters
Apple Upgrade gives customers a lower monthly entry point for Apple devices, especially for people who upgrade often and do not want to pay the full price upfront.
But it also changes the buying decision. A lease can make a new device feel more affordable month to month, but customers should still check the full terms, damage rules, early termination fees, AppleCare costs and end-of-lease options before enrolling.
For Apple, the program creates a broader upgrade path inside its own retail system. For customers, the main question is simple: do you want to own the device, or do you mainly want a cheaper monthly path to the next one?
As of this writing, Apple Upgrade is available only in the United States through Apple’s online store, Apple Store app and physical Apple Store locations.
via: Apple Newsroom | Apple Upgrade | The Verge | X Topic Summary
