According to a Bloomberg report by Mark Gurman, Apple is winding down its existing iPhone Upgrade Program in favor of a new leasing service called Apple Upgrade. The news comes just days before the official launch of the new program, scheduled for July 28, 2026. This move represents a significant shift in Apple's strategy for financing its flagship devices.
New Apple Upgrade replaces the existing iPhone Upgrade Program
The iPhone Upgrade Program, launched in 2015, allowed customers to get a new iPhone every year by paying a monthly fee and returning their old device. Apple now intends to replace it with Apple Upgrade, a leasing plan that also covers products like Mac and iPad with more flexible terms. According to the report, Apple will no longer accept new sign-ups for the iPhone Upgrade Program after the new service launches. Current members can complete their payment cycles, but renewal will not be possible.
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Apple Upgrade includes Klarna financing and better conditions
The new Apple Upgrade program partners with Klarna for financing, offering interest-free installment plans for a wider range of products. This move could attract a larger audience, not just iPhone enthusiasts but also those who want to regularly upgrade MacBooks, iPads, or Apple Watches. The previous program was limited to iPhones and had stricter credit checks.
Reasons behind Apple's decision
Apple appears to want to simplify its hardware subscription offering, making it more scalable and integrated with existing services like Apple One. The iPhone Upgrade Program showed that customers appreciate frequent device upgrades, but also that managing old installments was complex. With Apple Upgrade, the company aims to reduce operational costs and increase loyalty by offering a more modern and transparent leasing option. According to Wikipedia, the iPhone Upgrade Program had millions of subscribers, but the new model could double the user base.
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What changes for current and future customers
Current iPhone Upgrade Program members will face no immediate disruption: they can continue paying their installments until the end of the 24-month cycle. However, once completed, they will not be able to renew. Those wanting an upgrade plan will need to subscribe to Apple Upgrade. The new leasing offers more flexible terms, such as returning the device after 12 or 24 months, and includes AppleCare+ in the monthly fee. Apple is also testing a 7-inch display for the 20th anniversary iPhone, hinting at hardware innovation to make leasing even more attractive.
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In conclusion, the end of the iPhone Upgrade Program marks the close of an era but opens the door to a broader, more accessible hardware subscription model. Apple Upgrade, backed by Klarna, could become the standard for purchasing Apple devices, anticipating a trend already seen in other industries. Customers should prepare for the change by evaluating the new leasing terms against direct purchase.
Source: https://9to5mac.com/2026/07/21/apple-winding-down-iphone-upgrade-program-report
