Apple Now Lets You Lease an iPhone as It Retires the iPhone Upgrade Program

Apple has launched Apple Upgrade, a new leasing program that lets customers in the United States lease iPhones, iPads, Macs, and Apple Watches for a monthly fee instead of buying them outright. The launch also marks the end of the iPhone Upgrade Program, Apple's financing option that had been available since 2015.

Unlike a traditional installment plan, Apple Upgrade is built around leasing. Devices are financed through Klarna, which retains ownership throughout the lease term. When the lease ends, customers can upgrade to a newer device, buy their current one by paying the remaining balance, or simply return it and exit the program.

The service offers 12- and 24-month leases for iPhones and Apple Watches, while iPads and Macs are available on 24- or 36-month terms. Monthly pricing starts at $17.99 for an iPhone, $11.99 for an Apple Watch, $11.99 for an iPad, and $24.99 for a Mac.

Buying the device is no longer automatic. Customers who decide to keep their hardware after the lease expires must pay the remaining purchase balance. Apple says the combined lease payments and final buyout price will never exceed the device's retail price.

One notable change is the removal of bundled AppleCare+. Under the previous iPhone Upgrade Program, Apple's extended warranty and accidental damage coverage were included in the monthly payment. With Apple Upgrade, AppleCare+ is sold separately.

There are also conditions customers need to consider. Leases can be canceled within 14 days of delivery, but ending the agreement after that requires paying the remaining lease payments. Devices returned with damage may incur repair fees if they are not covered by AppleCare+, while repeated missed payments can lead to lease termination and debt collection through Klarna.

Apple's previous iPhone Upgrade Program worked differently. Customers financed their devices over 24 months with zero interest, received AppleCare+ as part of the monthly payment, and could upgrade to a new iPhone after making 12 payments. Existing members can continue paying off their current devices, but the program is no longer accepting new enrollments.

For now, Apple Upgrade is only available in the United States. Customers must have a U.S. billing address, a Social Security Number or Individual Taxpayer Identification Number (ITIN), a Klarna account, and either receive delivery in the U.S. or pick up their device from a U.S. Apple Store.

The new program gives Apple another way to keep customers on a recurring monthly payment model while making annual hardware upgrades easier for those who prefer leasing over ownership.