Apple Upgrade Program Explained: Eligible Devices, Lease Plans, AppleCare+, and Everything You Need to Know

Apple is reportedly set to launch a new subscription-based device leasing service called Apple Upgrade in the US on Tuesday, July 28. The new programme is expected to let customers use an iPhone, iPad, Mac, or Apple Watch by paying a monthly fee instead of purchasing the device outright.

According to Bloomberg's Mark Gurman, Apple Upgrade will replace the company's existing iPhone Upgrade Program and expand the concept beyond smartphones. Here's everything we know so far.

Apple Upgrade: How Will It Work?

The Apple Upgrade programme is said to be available through both Apple's online store and physical retail outlets in the US. The company is reportedly partnering with Klarna to finance the programme, replacing Citizens Bank, which currently backs the iPhone Upgrade Program.

Under the new system, customers will lease eligible Apple devices for a fixed period and pay monthly instalments. At the end of the lease, users can either upgrade to a newer model, return the device, or pay an additional amount to keep it permanently.

Which Apple Devices Will Be Eligible?

Unlike the current programme that focuses only on iPhones, Apple Upgrade is expected to include most of the company's hardware lineup, including:

• iPhone
• iPad
• Mac
• Apple Watch

However, a few entry-level devices may reportedly be excluded. These include the iPhone 16, Apple Watch SE, entry-level iPad, and the MacBook Neo. Business and education purchases are also expected to remain ineligible.

Lease Period and Upgrade Options

The leasing duration will reportedly vary depending on the product category.

• 24-month lease: iPhone and Apple Watch
• 36-month lease: Mac and iPad

During the lease period, customers are expected to have multiple options, including paying off the remaining balance early, upgrading to a newer model before the lease expires, returning the device at the end of the term, or making a final payment to own the device outright.

AppleCare+ Won't Be Included

One of the biggest differences between the current iPhone Upgrade Program and the upcoming Apple Upgrade initiative is AppleCare+.

The existing iPhone Upgrade Program bundles AppleCare+ into the monthly payment. However, Gurman claims the new Apple Upgrade programme will not include accidental damage protection by default. Customers who want AppleCare+ will reportedly need to purchase it separately, increasing the overall monthly ownership cost.

Apple Upgrade vs iPhone Upgrade Program

The upcoming service is expected to replace Apple's existing iPhone Upgrade Program, but with a broader focus.

The new programme reportedly:

• Expands beyond iPhones to include Macs, iPads, and Apple Watches.
• Uses Klarna instead of Citizens Bank for financing.
• Drops the bundled AppleCare+ benefit.
• Offers similar end-of-term flexibility, including upgrades, returns, or ownership.

If the report proves accurate, Apple Upgrade could become Apple's primary hardware subscription programme in the US, making it easier for customers to access the latest Apple devices without paying the full purchase price upfront. Apple is expected to announce the programme officially on Tuesday.