Apple Upgrade Program Lets You Lease iPhones And Macs For $17.99
Update 7/28/2026 8:35am ET
Apple has officially announced Apple Upgrade, a new device leasing program provided by Klarna covering iPhone, Apple Watch, Mac, and iPad, available on the Apple Store online, in the Apple Store app, and at US retail locations. Lease terms run 12 or 24 months for iPhone and Apple Watch, and 24 or 36 months for Mac and iPad. Starting monthly prices are $17.99 for iPhone, $11.99 for Apple Watch, $24.99 for Mac, and $11.99 for iPad. Customers can lower payments with Apple Trade In and earn 3 percent Daily Cash on payments made with Apple Card. Enrollment involves a soft credit inquiry through Klarna that does not affect credit scores.At the end of a term, customers can upgrade to the newest generation, buy the device outright with a one-time payment, or return it and exit. AppleCare can be added to protect the device and ease the return-and-upgrade process.
Apple Upgrade replaces both the iPhone Upgrade Program and iPhone Payments in the United States. Customers currently in the iPhone Upgrade Program will be able to lease through Apple Upgrade, finance with Apple Card Monthly Installments, buy outright, or use carrier financing when eligible.
The release also runs through the current lineup eligible for leasing, including iPhone 17e, 17, Air, and 17 Pro/Pro Max; Apple Watch Series 11 and Ultra 3; MacBook Air with M5, the M5 MacBook Pro family, M4 iMac, and Mac Studio; and iPad Air, M5 iPad Pro, and iPad mini.
Original Article
Apple looks ready to change how customers pay for its hardware. According to people familiar with the plans, the company is preparing to launch Apple Upgrade, a leasing program backed by Klarna that would cover most iPhone, Mac, iPad, and Apple Watch models and let shoppers bring home a new device without paying the full price upfront. The timing is likely not an accident. Apple raised prices across its Mac and iPad lineups in late June after memory and storage costs climbed sharply throughout the technology industry, and the company left the door open to further increases.
The program is reportedly scheduled to arrive in the United States on July 28 through Apple's website and retail stores, and signing up will require nothing more demanding than a soft credit check. Lease terms run 24 months for iPhones and Apple Watches, and 36 months for Macs and iPads. Once an agreement ends, customers can hand the device back, roll into a newer model, or pay off the remaining balance and keep what they have. Early upgrades and early buyouts are expected to be options as well, though some of those moves could carry additional fees.
Apple reportedly plans to stop accepting new enrollments in both its existing iPhone Upgrade Program and its standard iPhone financing plans once the new service goes live, and one omission stands out: Apple Upgrade will not include AppleCare. The current iPhone Upgrade Program that is being purportedly being sunsetted folds AppleCare+ into the monthly payment and lets customers move to a new handset after 12 payments, so anyone switching over will need to buy coverage separately to stay protected against cracked screens and other accidents.
Not every product qualifies either. The iPhone 16, the MacBook Neo, the Apple Watch SE, and the entry level iPad are all reportedly ineligible, as are business and education purchases. That leaves the program aimed squarely at individual shoppers buying Apple's pricier hardware, which is very likely the point.
With the cost of owning an Apple device rising, a leasing option gives Apple a way to advertise a manageable monthly payment instead of a painful sticker, even though customers could spend two or three years paying for hardware they do not automatically own. Higher iPhone prices may be waiting this fall as well, and Apple Upgrade would soften that blow without the company discounting anything.
Code uncovered in the iOS 27 beta suggests Apple could also remotely restrict financed or leased devices when customers fall behind on payments. The system, known as App Managed Features, would allow an authorized financing app to enroll an iPhone and periodically check whether the associated account remains in good standing.
Should payments lapse, the financing provider could reportedly activate a Restricted Mode that blocks access to most apps. Essential tools such as Phone, Settings, Wallet, Health, Passwords, Clock, and accessibility features would remain available. Messages, Home, medication apps, and other emergency services may also continue working, although the financing provider could have some control over which exceptions are allowed.
For Klarna, the arrangement is a substantial win. The payments firm will reportedly provide the financial backing and absorb much of the credit risk, and its shares climbed on reports of the deal. Apple spent years developing a hardware subscription service of its own before winding that project down in late 2024, so leaning on a partner lets it offer subscription style buying without building and running a lending operation from scratch.
Neither company has confirmed any of the new lease program, which means the launch date and the final terms could still shift before anything goes live. Should the reporting hold up, the question facing Apple shoppers this fall becomes less about which iPhone to buy and more about whether an upgrade or new Apple device still makes sense at all.
