Apple has officially launched Apple Upgrade, a new product leasing program provided by the buy now, pay later service Theverge. Available in the United States, the program allows eligible customers to lease iPhones, iPads, Macs, and Apple Watches through the Apple Store online, in the Apple Store app, and at physical Apple Store locations. The launch marks the retirement of the older iPhone Upgrade Program, which ran for a decade after launching alongside the iPhone 6s and 6s Plus in 2015.
Apple Introduces Klarna-Backed Apple Upgrade Leasing Program in the United States
According to Apple, the new Apple Upgrade structure provides flexible terms and monthly payment options depending on the chosen hardware. Leasing options span 12 or 24 months for iPhones and Apple Watches, while Macs and iPads are available on 24- or 36-month terms. Monthly starting prices begin at $17.99 for iPhone, $11.99 for Apple Watch, $11.99 for iPad, and $24.99 for Mac. However, entry-level devices such as the iPhone 16, entry-level iPad, MacBook Neo, Mac mini, and Apple Watch SE are excluded from the program, as Apple steers customers toward mid-market and premium models.
Terms, Credit Approvals, and Ownership Details
To enroll, applicants must undergo a soft credit inquiry through Apple that will not impact their credit score. Apple states that Klarna does not charge late fees or interest on the loans. During the lease duration, Klarna technically owns the device, and users are responsible for keeping it in good condition to avoid potential damage fees upon return.
Unlike the previous financing structure through Citizens One, customers do not automatically own the hardware at the end of the term. When the lease concludes, participants have three distinct choices:
- Return the device and simply exit the program.
- Upgrade to a newer device by starting a new lease.
- Purchase the device with a one-time payment covering the remaining balance to keep it.
Apple notes that customers have six months after the loan period to decide whether to upgrade, return their current device, exit the program, or buy the hardware outright. Additionally, users can lower their monthly lease payments by trading in an older device through Apple Trade In or earn 3 percent Daily Cash back by making payments with an Apple Card.
Changes to AppleCare and Transition for Existing Program Members
A notable shift from the previous upgrade plan involves device protection coverage. While AppleCare was bundled by default into the old iPhone Upgrade Program, AppleCare is now a separate add-on subscription. Protection pricing starts at $9.99 per month for iPhones, $5.49 per month for iPads, $3.99 per month for Macs, and $4.99 per month for the Watch Series 11 and up, with a $19.99 per month option available to cover up to three devices.
For current members enrolled in the retiring iPhone Upgrade Program, Apple will allow them to finish paying off their existing devices. When their upgrade window arrives, they can choose to lease a new device via Apple Upgrade, finance through Apple Card Monthly Installments, buy the product outright, or select carrier financing.
Apple spokesperson Brian Bumbery confirmed regarding missed payments that there will be no limitations put on device functionality due to missed payments or default with the Apple Upgrade program,
addressing earlier code-based speculation reported by Theverge.
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