Apple has rolled out a new way for US customers to get their hands on the latest devices without paying the full price upfront. Called the Apple Upgrade Programme, this leasing service lets buyers pay monthly for an eligible iPhone, Apple Watch, Mac, or iPad. It sounds straightforward, but there's a catch worth understanding before signing up.
Key Highlights
- Apple Upgrade lets you lease devices monthly instead of buying them outright.
- iPhones and Apple Watches can be leased for 12-24 months; Macs and iPads for 24-36 months.
- The programme is powered by Klarna, not Apple's own financing system.
- It replaces the older iPhone Upgrade Program for new customers.
How the Apple Upgrade Programme Works
Customers can sign up for the Apple Upgrade Programme through the online Apple Store, the Apple Store app, or in person at physical Apple retail locations. Once enrolled, buyers pay a fixed monthly instalment rather than the full purchase price. Monthly rates start at $17.99 for an iPhone, $11.99 for an Apple Watch or iPad, and $24.99 for a Mac.
Trading in an eligible old device through Apple Trade In when joining can lower the monthly payment further. Apple Card users also get a nice bonus: paying the lease through the Apple Card earns 3 percent Daily Cash on every payment. An AppleCare subscription can be added on top for extra protection, at additional cost.
The Catch: What Happens at the End of the Lease
Here's where things get interesting. At the end of the lease term, customers aren't left with full ownership by default. Instead, they get to choose between three options: upgrading to a newer model, buying the current device outright with a one-time payment, or simply returning it and exiting the programme. In other words, unless you pay extra at the end, you don't automatically own the device you've been paying for every month.
The entire programme is powered by Klarna rather than an in-house Apple financing system, meaning lease details, billing schedules, and remaining payments are all managed through the Klarna app rather than Apple's own tools. If you're used to owning your devices outright, this shift toward a subscription-style model is worth factoring into your decision.
What This Means for Existing Customers
With Apple Upgrade now live, the company is officially discontinuing its older iPhone Upgrade Program and iPhone Payments plan for new sign-ups in the US. Anyone already enrolled in the old programme can continue making payments until their device is fully paid off, but going forward, new purchases will need to go through Apple Upgrade, Apple Card Monthly Instalments, an outright purchase, or carrier financing instead.
Applying is fairly quick: pick an eligible product online or in-store, select Apple Upgrade as the payment method, and complete a short application through Klarna. This involves a soft credit check that doesn't affect your credit score. Once approved, you can pick up your device in-store or have it delivered. It's a similar leasing structure to the pricing shifts happening elsewhere in tech, like how the Apple iPhone 18 Pro's staggered launch strategy could affect availability and demand, or how brands like OnePlus are adjusting pricing with deals such as the recent OnePlus 13 discount on Flipkart.
Frequently Asked Questions
What is the Apple Upgrade Programme?
It's a new leasing programme from Apple that lets US customers pay monthly for an iPhone, Apple Watch, Mac, or iPad instead of paying the full price upfront.
How much does the Apple Upgrade Programme cost per month?
Monthly lease prices start at $17.99 for an iPhone, $11.99 for an Apple Watch or iPad, and $24.99 for a Mac.
What happens to the old iPhone Upgrade Program?
Apple is discontinuing the iPhone Upgrade Program and iPhone Payments for new customers, though existing members can continue paying off their current device.
