Apple Upgrade Program Replaces iPhone Upgrade: Lease an iPhone, Mac, iPad or Apple Watch from $11.99/Month

Apple has officially launched Apple Upgrade, a new leasing program in the US that replaces the long-running iPhone Upgrade Program and iPhone Payments. Developed in partnership with Klarna, the service expands beyond iPhones to include Macs, iPads, and Apple Watches, giving customers a more flexible way to access Apple's latest hardware.

What Is Apple Upgrade?

Unlike traditional financing, Apple Upgrade is a leasing program. Customers pay a monthly fee to use an Apple device for a fixed period instead of purchasing it outright. Applications can be completed online, through the Apple Store app, or at Apple retail stores, with Klarna handling the approval process via a soft credit check, which does not impact the applicant's credit score.

At the end of the lease, users can upgrade to a newer device, purchase the existing one, or return it, depending on the terms of their agreement.

Apple Upgrade Monthly Pricing

Apple offers different lease durations based on the product category.

iPhones and Apple Watches are available with 12- or 24-month lease plans, while Macs and iPads can be leased for 24 or 36 months. Monthly pricing starts at $11.99, depending on the product and lease duration.

Apple notes that the final monthly payment depends on the selected configuration and lease duration. Customers can also reduce their monthly costs by trading in eligible Apple devices. Additionally, users paying with an Apple Card will receive 3% Daily Cash on lease payments.

Eligible Devices

Apple Upgrade covers most of Apple's latest products, including the iPhone 17 series, Apple Watch Series 11, Watch Ultra 3, MacBook Air and MacBook Pro with M5 chips, iPad Air, and iPad Pro. Select accessories, including the Apple Pencil Pro and Magic Keyboard, are also available under the program.

However, products such as the iPhone 16, Mac mini, Studio Display, Watch SE, and entry-level iPad models are currently excluded.

Existing Users Will Need to Switch

With the launch of Apple Upgrade, Apple has discontinued its previous iPhone Upgrade Program in the US. Existing members can continue using their current devices but must transition to one of Apple's newer financing options when it's time to upgrade.

Customers can choose between:

• Apple Upgrade (Klarna leasing)
• Apple Card Monthly Installments
• Carrier financing

Is Leasing Better Than Buying?

Apple Upgrade is designed for users who prefer upgrading to the latest hardware every year or two. While the lower monthly payments make premium devices more accessible, leasing does not provide ownership. At the end of the agreement, customers must either return the device or pay an additional purchase amount if they wish to keep it.

For long-term users who typically keep their devices for several years, buying outright or using traditional financing is still likely to be the more cost-effective option.

Will Apple Bring Apple Upgrade to India?

For now, Apple Upgrade is limited to the US. However, the move reflects Apple's growing focus on subscription-style hardware ownership. If successful, the company could eventually explore similar partnerships in other markets, including India, where premium smartphone demand continues to rise. Although no such plans have been announced, a leasing model could offer Indian consumers another way to access flagship Apple devices without paying the full price upfront.