Apple introduces Apple Upgrade leasing program, replacing iPhone Upgrade Program

Apple announced a new leasing service called Apple Upgrade, which will replace the iPhone Upgrade Program and iPhone Payments. The program, offered in partnership with Klarna, allows customers to lease iPhones, iPads, Macs and Apple Watches for monthly payments that start at $17.99 for iPhones and $11.99 for Apple Watches, with Macs and iPads beginning at $24.99 and $11.99 respectively. Lease terms range from 12 to 24 months for iPhones and Apple Watches, and 24 to 36 months for Macs and iPads. Prices vary by device and are reduced when a trade-in credit is applied each month.

Customers must select a post-paid plan from AT&T, Verizon or T-Mobile; prepaid and MVNO plans are not supported. At the end of a lease, users can return the device, purchase it for the remaining balance, or upgrade to a new lease. Klarna does not charge an additional fee for the lease, so the purchase price at lease end matches the retail price, minus taxes and any trade-in credits.

Apple Care+ is optional and not included in the lease price; Apple Care One is also available. Early termination incurs a fee equal to the remaining lease payments, while paying off the lease early carries no penalty. Missed payments are rolled into the next month’s bill, but three consecutive missed payments trigger lease termination and require the customer to settle the outstanding balance.

The program is open to U.S. residents aged 18 or older with a valid SSN or ITIN, a credit or debit card, and an Apple account in good standing. It is available both online and in Apple stores, with instant approval provided after a soft credit check through Klarna. Certain devices—including the iPhone 16 series, Apple Watch SE, MacBook Neo, Mac mini, specific iPad models and the Studio Display—are excluded, as are purchases using EDU discounts, refurbished units, or specific corporate and employee purchase plans.

Current participants in the discontinued iPhone Upgrade Program can continue their existing payments until the devices are paid off, after which they must transition to Apple Upgrade or another payment option. Apple Card users may still use the Apple Card Monthly Installments plan or switch to Apple Upgrade and receive 3% Daily Cash back on lease payments.