Apple has announced a new leasing program called "Apple Upgrade," which will officially debut in the United States on Tuesday, July 28, 2026. According to a report by Bloomberg's Mark Gurman, this marks one of the biggest changes to how Apple sells devices. The program allows financing for most iPhone, iPad, Mac, and Apple Watch models, with 24-month terms for iPhones and Apple Watches, and 36-month terms for iPads and Macs. Key partner Klarna, the Swedish buy-now-pay-later company, will handle the financing.
How the new Apple Upgrade works
With the Apple Upgrade program, customers can purchase a device by making a down payment and paying monthly installments. At the end of the financing period, they can return the device for a discount on a new model or keep it by paying the final installment. This scheme resembles the iPhone Upgrade Program launched in 2015, but Apple Upgrade extends to many more products, including iPads and Macs. The program simplifies annual device upgrades, making it easier for customers to always have the latest model without paying the full price upfront. Moreover, the integration with Klarna offers payment flexibility with customizable installment plans.
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Market impact and comparison with previous programs
Apple previously offered the iPhone Upgrade Program, but this new leasing represents a significant expansion. Klarna's entry as a financial partner could lower costs for Apple and offer more favorable terms to customers. The Bloomberg report emphasizes that the change is epochal for Apple's sales approach, shifting focus from direct sales to a subscription and leasing model. This could boost brand loyalty and encourage more frequent upgrades, positively impacting sales of new models. Meanwhile, Apple continues to invest in new form factors, such as testing a 7-inch display for the 20th anniversary iPhone, demonstrating a strategy of constant innovation.
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Industry reactions and potential challenges
Some analysts view the Apple Upgrade program as a way to counter competition from Samsung and Google, which offer similar programs. However, there are concerns about environmental sustainability, as leasing might encourage frequent device turnover. Apple has stated that returned devices will be refurbished and resold, reducing e-waste. Additionally, the partnership with Klarna raises questions about financial data privacy, but Klarna is already regulated in Europe and the United States. For further context, see also the article on TSMC raising prices for Apple chips, which could affect production costs of devices included in the program.
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Interested customers can join the program directly from the Apple website or Apple Stores starting July 28. Further details, such as effective interest rates and contractual conditions, will be announced at launch. With Apple Upgrade, Cupertino aims to make its products more accessible, lowering the economic barrier for purchasing cutting-edge technology. For more information on Klarna, check the Wikipedia page for Klarna.
Source: https://www.macrumors.com/2026/07/21/apple-upgrade-program-launching-next-week
