Apple announced a new leasing program, Apple Upgrade, for accessing iPhones, Apple Watches, Macs and iPads in the United States through monthly payments. Available through the partnership with Klarna, the service will be offered via the Apple online store, Apple Store app and Apple retail stores throughout the United States.
The program arrives as rising component and memory costs increase pressure on device prices, encouraging Apple to offer customers a lower monthly entry point instead of relying entirely on upfront purchases.
Apple Upgrade offers a 12-month and 24-month options for Apple Watch and Apple iPhone users, and a 24-month and 36-month options for Apple Mac and iPad customers.
Monthly payments begin at $17.99 for iPhone, $11.99 for Apple Watch, $24.99 for Mac and $11.99 for iPad. However, the charges differ according to models and leasing periods. An unlocked iPhone 17 Pro, for instance, is reportedly $31.99 a month for 24 months or $45.99 a month for one year.
Consumers can save by selling the previous device to Apple through the Apple Trade In program. Lease payments on Apple Cards will also provide 3% daily cash rewards.
“At Apple, we put the customer at the center of everything we do,” said Karen Rasmussen, Vice president of the online Apple Store. She further added, “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.”
Customers can apply online or in stores, with Klarna conducting a soft credit inquiry that does not affect credit scores. Once approved, users can receive their devices through delivery, store pickup or immediate in-store collection.
At the end of the lease, customers may return the device, upgrade to a newer model or purchase it through a one-time payment. Lease details, including billing schedules and outstanding payments, are managed through Klarna’s app.
According to the program terms, no security deposit is required. Klarna will not charge late fees, although leases may be terminated after three consecutive missed payments.
Also Read: Redington Shares Hit Record High, Apple Sales Boost Stock
With Apple Upgrade’s launch, the company is discontinuing the iPhone Upgrade Program and iPhone Payments in the United States. Existing customers may shift to Apple Upgrade, Apple Card Monthly Installments, carrier financing or outright purchases.
The move could also shorten Apple’s device replacement cycle. According to Bernstein estimates, the average iPhone upgrade period has stretched to almost four years.
Apple is now competing more directly with AT&T, Verizon and T-Mobile, which use installment plans and trade-in incentives to retain customers. The leasing model may help Apple soften the impact of potential price increases while creating more predictable upgrade demand across its product ecosystem.
Apple Upgrade is a new device-leasing program in the United States, provided through Klarna. It allows eligible customers to lease iPhones, Apple Watches, Macs, and iPads through monthly payments.
Monthly payments start at $17.99 for iPhone, $11.99 for Apple Watch, $24.99 for Mac, and $11.99 for iPad. Final costs depend on the device model and lease duration.
Klarna uses a soft credit inquiry during the application process, which does not affect the applicant’s credit score. Approval is generally provided quickly online or in-store.
Customers can return the device, upgrade to a newer model, or purchase the leased product through a one-time payment. Lease information and remaining payments can be tracked through the Klarna app.
Yes. Apple is ending the iPhone Upgrade Program and iPhone Payments in the US. Existing customers may choose Apple Upgrade, Apple Card Monthly Installments, carrier financing, or an outright purchase.