Apple has launched Apple Upgrade, a device-leasing program that expands well beyond the iPhone to cover Mac, iPad, and Apple Watch. The service went live in the United States on July 28, 2026, replacing new enrollments in the decade-old iPhone Upgrade Program with a lease-to-own model financially backed by Klarna.

The program arrives weeks after Apple raised prices across its Mac and iPad lineups, citing a global memory-chip shortage that has sent component costs soaring industry-wide. iPhone prices have been spared from hikes so far, though analysts expect that to change when new models arrive later this year.

Launch date: July 28, 2026, in the United States
Financial partner: Klarna
Lease terms: 24 months for iPhone and Apple Watch; 36 months for Mac and iPad
End-of-term options: Upgrade to a new device, pay a fee to keep the current device, or return it and exit the program
AppleCare: Not included in the monthly lease payment
Credit check: Soft check required for approval
Excluded devices: Apple Watch SE, entry-level iPad, iPhone 16, and MacBook Neo
Not eligible: Business and education purchases

Apple Upgrade is structured more like a vehicle lease than a traditional installment plan. Customers make monthly payments that cover the device’s depreciation rather than its full retail price, which Apple is expected to advertise as a way to lower upfront costs compared with existing financing options.

According to The Verge, reported monthly rates start at $17.99 for the iPhone 17e, $11.99 for the Apple Watch Series 11, $24.99 for the MacBook Air, and $11.99 for the iPad Air. At the end of the lease, customers who want to own their device outright must make an additional buyout payment. Those who prefer to walk away can return the hardware with no further obligation, provided the device meets return conditions.

Early upgrades are also possible, though Bloomberg reports that some transactions,such as early payoffs or upgrades before the term ends,will incur additional fees. Enrollment requires a soft credit check through Klarna and is available both online and at Apple’s physical retail stores.

What Changes from the iPhone Upgrade Program

Apple Upgrade replaces the iPhone Upgrade Program that Apple introduced in 2015. New signups for the older program stopped on July 28, though Bloomberg’s Mark Gurman notes that existing customers may remain enrolled “for the time being.”

The Context: Price Hikes and the Memory Shortage

The launch timing is notable. In late June 2026, Apple raised prices on Macs, iPads, HomePods, Apple TV, and Apple Vision Pro by $100 to $300 per device, blaming an industry-wide memory and storage shortage driven by surging AI data-center demand. The shortage,dubbed “RAMageddon” by industry observers,has seen DRAM contract prices spike and NAND flash costs rise more than 60% in some categories over the past year.

In a statement accompanying the June price hikes, Apple said it had “now reached a point where we need to begin raising prices on a number of products.” iPhone and Apple Watch prices were left unchanged, but analysts at IDC and Wedbush expect iPhone prices to climb when the next generation launches this fall.

By introducing a leasing option with lower monthly payments, Apple appears to be offering consumers a way to absorb higher hardware costs without the sticker shock of a full upfront purchase,while keeping the sale inside Apple’s ecosystem rather than routing customers through carrier upgrade plans.

The Fine Print: Missed Payments and Device Restrictions

Leasing comes with enforcement mechanisms. Code discovered in the iOS 27 beta, first spotted by 9to5Mac and reported by AppleInsider, suggests Apple is building systems to restrict leased devices when payments fall behind.

One framework, called App Managed Features, could activate a “Restricted Mode” that limits the iPhone to a handful of apps,reportedly including Wallet, Settings, Health, Clock, and App Store,until the payment issue is resolved. A separate Partner Finance Lock framework embedded in Find My code would prevent users from erasing or restoring the device, effectively blocking resale or parts stripping.

Note: The payment-restriction features are based on beta code and have not been confirmed by Apple for the final iOS 27 release. It remains unknown how many missed payments would trigger a restriction or what the exact appeals process would be.

What This Means for Buyers

For customers who upgrade frequently, Apple Upgrade could offer a more predictable monthly cost and a cleaner path to the latest hardware. But the lease structure means that, unlike Apple Card Monthly Installments or the old iPhone Upgrade Program, monthly payments do not automatically lead to ownership. Customers who want to keep their device must budget for a final buyout fee.

The removal of bundled AppleCare also shifts risk. Under the old program, AppleCare+ was mandatory, meaning repairs and accidental damage coverage were included. Apple Upgrade customers will need to purchase AppleCare separately if they want the same protection,at a time when AppleCare itself has also seen recent price increases.

Apple has not announced plans to expand Apple Upgrade outside the United States. For now, the program remains a U.S.-only offering as the company navigates a turbulent hardware market defined by component shortages, rising prices, and an impending leadership transition that will see John Ternus take over as chief executive on September 1, 2026.

Source References

Bloomberg / Mark Gurman, via MacRumors and 9to5Mac , Program structure, launch date, and terms
The Verge , Reported monthly pricing and launch details
AppleInsider , iOS 27 beta code analysis on payment restrictions
PBS NewsHour and Yahoo Finance , Apple price hikes and memory shortage context
Apple Newsroom , Executive succession timeline

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Apple Upgrade Launches as Klarna-Backed Leasing Program for iPhone, Mac, iPad, and Watch