Apple today introduced Apple Upgrade, a new leasing program for iPhone, iPad, Mac, and Apple Watch available exclusively in the United States through a partnership with Klarna. This service replaces the previous iPhone Upgrade Program and direct installment payments, offering lower monthly rates and greater flexibility. The goal is to make Apple devices more accessible by allowing customers to lease instead of buying upfront, with the option to upgrade frequently.
Competitive starting monthly payments across the Apple lineup
With Apple Upgrade, iPhones start at $17.99 per month, while the Apple Watch begins at $11.99 monthly. Macs can be leased from $24.99 per month and iPads from $11.99. Pricing varies by model and lease duration: 12- or 24-month options for iPhone and Apple Watch, and 24- or 36-month options for Mac and iPad. Apple provided typical pricing examples, excluding taxes and trade-in credits: a 256GB iPhone 17 Pro at $31.99 per month for 24 months or $45.99 for 12 months; a 42mm Apple Watch Series 11 at $11.99 per month for 24 months; a 256GB iPad Pro at $24.99 for 36 months; a 16GB 14-inch MacBook Pro at $38.99 for 36 months. Notably, AppleCare+ is optional and not included in the lease price; customers can add it separately or choose AppleCare One.
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Carrier requirements and end-of-lease flexibility
When leasing an iPhone, customers must select a plan from AT&T, Verizon, or T-Mobile; prepaid plans are ineligible. The iPhones are unlocked, allowing carrier switching, but MVNOs like Mint Mobile or Visible are not supported. At the end of the lease term, customers have three choices: return the device and exit the program, pay off the remaining balance in one lump sum to own it, or return it and start a new lease for an upgraded model. The purchase price equals the difference between payments made and the retail price, with no extra interest: Klarna charges no fees, so a $1,099 iPhone can be leased and then bought for the same amount, plus taxes.
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Transition from the old program and management via Klarna app
The iPhone Upgrade Program is discontinued for new purchases, but existing participants can continue paying off their devices. At their next purchase, they must switch to Apple Upgrade or other options like Apple Card Monthly Installments, which now earn 3% Daily Cash on lease payments made with Apple Card. Apple Upgrade is available online and in stores: after a soft credit check, Klarna provides instant approval, and lease details (billing schedule, total price, remaining payments) can be managed in the Klarna app. Most iPhone, iPad, Mac, and Apple Watch models are eligible, but exceptions include iPhone 16 and 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, iPad (A16), and Studio Display. The program cannot be used with educational discounts, refurbished devices, or employee, business, government, or military purchase plans.
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Early termination, damages, and payment policies
Customers who end a lease early must pay the remaining months as a fee, but there is no penalty for paying off the lease early. If no action is taken at the end of the lease, it converts to a month-to-month lease for up to six months at the same monthly rate, though trade-in credits stop, potentially increasing payments. At the end of the extension, the purchase fee is charged. In case of damage, loss, or theft, Klarna assesses fees at return: with AppleCare+, only the service fee applies; without it, the full repair cost is charged. Missed payments roll into the next month without late fees, but three consecutive missed payments end the lease, requiring the customer to pay the outstanding balance minus the device's return value. Klarna offers one-month payment deferral and early lease termination with a repayment plan. Eligibility requires users to be 18 or older, have a valid SSN or ITIN, be a U.S. resident (territories excluded), and have an Apple Account in good standing, a Klarna account, and a credit or debit card.
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Apple Upgrade represents a significant shift toward flexible consumption models in consumer electronics. For those monitoring recurring costs, a recent survey found that average streaming spend has hit $60 per month, highlighting the growing focus on subscription management. Additionally, tools like Gemini Skills show how AI can enhance productivity, a benefit that a modern Apple device can amplify. For more details on the program, refer to Apple's official page or the Klarna Wikipedia entry.
Source: https://www.macrumors.com/2026/07/28/apple-upgrade-program-klarna
