Apple has introduced Apple Upgrade, a groundbreaking initiative that allows consumers to lease an iPhone, Mac, iPad, or Apple Watch rather than purchasing them, with monthly payments starting at $17.99.
This plan is now accessible in the United States via Apple's physical stores, their online site, and the Apple Store app.
The launch comes at a time when the prices of Apple devices continue to rise and consumers are taking longer to upgrade their gadgets.
According to a survey by Reviews.org, the average American user holds onto their phone for approximately 22 months before switching to a new one.
The Mechanics of Apple Upgrade
The program collaborates with the digital payment service Klarna and operates much like car leasing: users pay a monthly fee for a set period, and the device remains Apple's property unless the user opts to purchase it at the contract's conclusion.
iPhones and Apple Watches can be leased for 12 or 24 months, while Macs and iPads offer 24 or 36-month options.
The starting prices are:
- iPhone: from $17.99 per month.
- Apple Watch: from $11.99 per month.
- iPad: from $11.99 per month.
- Mac: from $24.99 per month.
Participants who trade in their current devices through the Trade In program can lower their monthly fees.
Additionally, users paying with the Apple Card will receive a 3% cashback each month.
End of Lease Options
Once the lease term ends, users have three choices:
- Return the device and exit the program.
- Pay the remaining balance to keep the device.
- Return the gadget and sign a new contract for the latest model.
Applesfera reports that Klarna does not charge extra fees for leasing, meaning an iPhone priced at $1,099 can be purchased at the end of the lease for that same amount, excluding taxes.
If the device is damaged and the user does not have AppleCare+, they must cover the full repair costs as determined by Klarna.
Eligible Products and Exclusions
The program includes models such as the iPhone 17, iPhone Air, Apple Watch Series 11, Apple Watch Ultra 3, MacBook Air, MacBook Pro, iMac, Mac Studio, iPad Air, iPad Pro, and iPad Mini.
Excluded are entry-level models like the iPhone 16, Apple Watch SE, MacBook Neo, Mac mini, and iPad (A16).
Leasing an iPhone also requires connecting it to AT&T, T-Mobile, or Verizon during enrollment.
Apple Upgrade replaces the previous iPhone Upgrade Program, which allowed users to switch iPhones after 12 monthly payments starting at around $42 per month—more than double the entry-level price of the new plan.
Timing of Apple Upgrade Launch
The program launches just weeks before the much-anticipated debut of Apple's first foldable iPhone, expected in September 2026, with an estimated price of around $2,000 according to Bloomberg.
In June, Apple had already raised prices for Macs and iPads due to a memory chip shortage driven by demand from AI data centers.
Mike Howard, Vice President at TechInsights, mentioned to CNN that "we should start thinking about a $1,500 iPhone instead of a $1,000 or $1,200 one."
Francisco Jeronimo, an IDC analyst, pointed out the timing, stating, "Apple Upgrade arrives precisely when Apple needs it," warning that "the real risk for Apple is that further price increases might impact the upgrade cycle."
Currently, the program is only available in the United States, though Klarna operates in Spain and other markets, leaving room for potential future expansion.
Frequently Asked Questions about Apple Upgrade
What is Apple Upgrade?
Apple Upgrade is a program that allows users to lease Apple devices such as iPhones, iPads, Macs, and Apple Watches for a monthly fee instead of purchasing them outright.
How does the leasing process work?
The leasing process involves paying a monthly fee for a set period, and at the end of the term, users can return the device, purchase it, or lease a new model. It functions similarly to an auto lease.
What are the benefits of using Apple Upgrade?
Users can experience lower monthly payments, receive a 3% cashback with the Apple Card, and have the option to upgrade to the latest model at the end of the lease term.