Apple has launched Apple Upgrade, a device-leasing program backed by Klarna that replaces the company’s iPhone Upgrade Program and iPhone Payments options in the United States. The service, which went live on July 28, 2026, offers monthly leasing plans for iPhone, Apple Watch, Mac, and iPad through Apple’s online store, mobile app, and physical retail locations.
Unlike the installment-based iPhone Upgrade Program it replaces, Apple Upgrade is structured as a consumer lease. Customers make monthly payments to Klarna but do not own the device unless they pay a purchase fee at the end of the term.
Lease Terms and Available Devices
The program offers 12- and 24-month lease terms for iPhone and Apple Watch, and 24- and 36-month terms for Mac and iPad. Apple says advertised monthly payments start at $17.99 for iPhone, $11.99 for Apple Watch, $24.99 for Mac, and $11.99 for iPad, though actual rates depend on the specific device configuration and lease duration.
Apple provided several pricing examples in its announcement. A 256GB iPhone 17 Pro with a purchase price of $1,099 leases for $31.99 per month over 24 months or $45.99 per month over 12 months. An Apple Watch Series 11 GPS 42mm, priced at $399, leases for $11.99 monthly on a 24-month term or $21.99 on a 12-month term. For the 11-inch iPad Pro 256GB ($1,199), the monthly cost is $24.99 over 36 months or $31.99 over 24 months. A 14-inch MacBook Pro with 16GB of memory and a $1,999 purchase price costs $38.99 per month over 36 months or $53.99 over 24 months.
Not all Apple devices are eligible. The company explicitly excluded iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, iPad (A16), and Studio Display from the program.
How Enrollment Works
Customers apply online or in-store and receive a credit decision from Klarna within minutes. The application requires a soft credit inquiry that Apple says will not affect the applicant’s credit score. Approved customers can complete their purchase immediately, with in-store buyers taking the device home the same day and online buyers choosing between delivery or in-store pickup.
Apple Trade In can reduce monthly payments for customers who exchange an existing device at enrollment. Customers who pay with Apple Card earn 3 percent Daily Cash back on their lease payments.
End-of-Lease Options and Restrictions
At the end of the initial lease term, customers have three options: upgrade to a new device by entering a new lease and returning the current one, purchase the device with a one-time payment, or return the hardware and exit the program. Upgrades are subject to eligibility and credit approval and are not guaranteed.
Customers who take no action before the lease expires will see the agreement convert to a month-to-month extension for up to six months, during which monthly payments may increase. If the customer still has not upgraded, terminated, or purchased the device after the extension period, Klarna will charge the purchase fee.
Early termination carries financial risk. Apple states that customers “may incur substantial fees” if they terminate the lease before the end of the initial term. The company also notes that insurance is not included in the lease, and customers may face damage fees if the device is lost, stolen, or returned in unsatisfactory condition.
iPhone Carrier Requirements
iPhone leases carry a carrier restriction not present for other devices. Customers must select service from AT&T, T-Mobile, or Verizon; prepaid carrier plans are not eligible. Apple notes that leased iPhones remain unlocked, allowing customers to switch between the three supported carriers at any time.
Eligibility and Exclusions
Apple Upgrade is available only to U.S. residents aged 18 or older with a valid Social Security Number or individual taxpayer identification number, an accepted credit or debit card, an Apple Account in good standing, and a Klarna Account. Applicants must be able to receive security verification codes via text message. Devices can be shipped to U.S. addresses or picked up at Apple retail stores, but U.S. territories are excluded.
The program is not available through several of Apple’s specialized purchasing channels, including the Apple Employee Purchase Plan, corporate Employee Purchase Programs, Apple at Work for small businesses or enterprises, and government, education, or veterans and military purchase programs.
What Happens to Existing iPhone Upgrade Program Members
With the launch of Apple Upgrade, Apple has stopped offering the iPhone Upgrade Program and iPhone Payments to new customers in the United States. Existing iPhone Upgrade Program enrollees will eventually have the option to transition to Apple Upgrade, finance through Apple Card Monthly Installments, buy their current device outright, or switch to carrier financing, though Apple has not specified when that transition process will begin.
AppleCare coverage, which was bundled into the monthly cost of the old iPhone Upgrade Program, is no longer included in the lease payment. Customers can add an AppleCare subscription separately to cover damage, theft, and loss.
“At Apple, we put the customer at the center of everything we do,” said Karen Rasmussen, Apple’s vice president of the Apple Store online, “and we’re thrilled that Apple Upgrade offers our customers, both online and in-store, a more flexible way to pay for the products they love.”