Apple is set to change how customers acquire its devices. According to Bloomberg's Mark Gurman, the new Apple Upgrade program will launch on Tuesday, July 28 in the United States, in partnership with buy-now pay-later company Klarna. This announcement marks the end of new enrollments in the iPhone Upgrade Program, which will be halted the same day, though existing members can remain for now.
Apple Upgrade Replaces the iPhone Upgrade Program for New Purchases
The new program is a leasing model rather than traditional financing. It will cover most iPhone, iPad, Mac, and Apple Watch models, with terms of 24 months for iPhones and Apple Watches, and 36 months for iPads and Macs. At the end of the term, customers can return the device, upgrade to a newer model, or pay a fee to keep it. This flexibility is designed to attract users who want to stay current without paying the full price upfront.
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Entry-Level Apple Devices Excluded from the Lease Program
Not all devices are eligible. According to the report, lower-priced products such as the Apple Watch SE, entry-level iPad, iPhone 16, and MacBook Neo will not be included. Apple seems to reserve leasing for premium models, likely to maintain higher margins and exclusivity. This strategic move may encourage customers to opt for more expensive versions, boosting average order value.
No Bundled AppleCare+ in Monthly Payments
Unlike the iPhone Upgrade Program, Apple Upgrade plans will not include AppleCare+ in the monthly fee. Customers who want coverage must purchase it separately. This approach aims to offer lower monthly payments, a key selling point. Apple plans to advertise Apple Upgrade as a way to have lower monthly payments compared to current financing programs, focusing on leasing as a more affordable path for frequent upgraders.
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The partnership with Klarna is logical: the Swedish fintech already works with Apple in other regions, and its integration will streamline credit checks and payment management. For U.S. consumers, Apple Upgrade marks a significant shift, especially as installment buying grows. With launch set for Tuesday, operational details will emerge soon. Stay tuned for updates.
For a comparison with other Apple initiatives, see our article on Apple Watch Series 12 and Ultra 4 and upcoming September releases. External insights on Klarna are available on Wikipedia.
Source: https://www.macrumors.com/2026/07/26/apple-upgrade-program-launching-tuesday
