Apple is introducing a new leasing program called Apple Upgrade in the United States on July 28, letting customers pay for devices in monthly installments. Working with Klarna, the Sweden-based company known for its buy-now-pay-later service, the program covers the iPhone, iPad, Mac, and Apple Watch, with payments spread across several years. When the term ends, customers can keep the device, return it, or trade up to a newer model. The move points to Apple's goal of making its increasingly expensive products easier to afford through smaller monthly payments.
What Apple Upgrade Is
Apple Upgrade lets customers pay for a device over several years rather than all at once, using a lease-style arrangement. Klarna, a company that specializes in deferred-payment services, handles the financing behind the scenes. The program covers the main models of the iPhone, iPad, Mac, and Apple Watch, and customers can sign up either at Apple Store locations or online.
A simple credit check is required to enroll. As the program's name suggests, its defining feature is the ability to "upgrade" to a newer model when the term ends, which makes the path to a new device clearer for people who like to switch to the latest hardware each year. According to reports, some transactions may involve an additional fee.
Lease Terms and End-of-Term Options
Lease lengths vary by device type. The iPhone and Apple Watch can be leased for up to 24 months, while the Mac and iPad go up to 36 months. Laptops and tablets, which people tend to hold onto longer, are given the longer payment window.
At the end of the term, customers have three choices. The first is to keep the device, the second is to return it, and the third is to trade up to a newer model. Because there is a defined exit at the end of the lease, the program adapts to different preferences, whether someone always wants the newest device or prefers to hold onto one they like for a long time.
Replacing the Older iPhone Upgrade Program
Apple already offered a leasing option called the iPhone Upgrade Program, which was limited to the iPhone. Apple Upgrade is its successor, extending the same idea beyond the iPhone to Apple's broader lineup.
Apple reportedly plans to stop accepting new sign-ups for the older iPhone-only program and consolidate around the more inclusive Apple Upgrade. Customers already enrolled in the previous program can continue until their term ends, while anyone signing up from now on is directed to Apple Upgrade. It is easiest to think of it as the earlier iPhone-only choice being widened to cover Apple's product range as a whole.
The Backdrop: Price Hikes and Boosting Sales
A full push into leasing is a logical step for Apple right now. Memory-chip supplies have tightened worldwide, driving up hardware costs. Surging demand for memory tied to the spread of generative AI has been cited as a factor that is now reaching the prices of smartphones and computers.
Against that backdrop, Apple has also moved to raise prices, and Apple Upgrade appears designed in large part to make those higher prices easier for consumers to accept. By smoothing a large one-time payment into smaller monthly amounts, the company looks to lower the barrier to purchase and give sales a lift.
Summary
Apple Upgrade is a leasing program that, through a partnership with Klarna, lets customers pay for the iPhone, iPad, Mac, and Apple Watch in monthly installments, launching in the United States on July 28. The iPhone and Apple Watch can be leased for up to 24 months and the Mac and iPad for up to 36 months, and at the end of the term customers can keep the device, return it, or trade up to a newer one. Positioned as a replacement for the previous iPhone-only program, it is an effort to support purchases by easing the monthly burden at a time when memory shortages continue to push prices higher.
