Apple is set to phase out its iconic iPhone Upgrade Program, according to a report by Bloomberg's Mark Gurman. The company plans to stop accepting new sign-ups for the program immediately after the launch of the new Apple Upgrade next week. This marks the end of a decade-long initiative that allowed customers to receive a new iPhone every year through monthly installments.
New Apple Upgrade excludes AppleCare+ Theft and Loss
The key difference between the two programs lies in insurance coverage. While the iPhone Upgrade Program mandated the inclusion of AppleCare+ with Theft and Loss coverage, the new Apple Upgrade does not bundle it into the monthly fee. This change lowers the monthly payment, making the plan potentially more affordable. AppleCare+ will remain available separately with upfront, annual, or monthly payment options.
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Uncertainty for existing members
It is currently unclear whether existing iPhone Upgrade Program members can remain enrolled beyond their current terms or will be migrated to the new program. The transition could cause confusion among loyal customers accustomed to the old plan that included theft and damage protection. Apple has not yet provided official details on the migration process.
A strategic shift for Apple
This move aligns with Apple's broader strategy to simplify its financing and leasing offerings. In recent weeks, Apple launched Apple Upgrade with Klarna, extending leasing up to 36 months for iPhones, iPads, and Macs. An article on Apple Patches Hide My Email Bug Over a Year After Initial Report highlights Apple's ongoing focus on security and user experience.
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Analysts suggest that the end of the iPhone Upgrade Program may drive more users toward the new leasing system, which offers greater flexibility but requires separate AppleCare+ purchase. For those seeking maximum protection, the overall cost might still be lower due to a reduced base rate. For a detailed report, see the original article on MacRumors.
Consumer reaction remains uncertain: some may welcome the lower monthly cost, while others may feel disadvantaged by the loss of automatic coverage. Apple will need to manage communication carefully to avoid backlash, especially among long-time iPhone Upgrade Program users.
Source: https://www.macrumors.com/2026/07/21/apple-may-wind-down-iphone-upgrade-program
