Apple has launched a device leasing program called 'Apple Upgrade' in the United States in partnership with Klarna, replacing its existing iPhone Upgrade Program and iPhone Payments.
The program covers iPhone, Apple Watch, Mac, and iPad. Lease terms vary by device: iPhone and Apple Watch are available for 12 or 24 months, while Mac and iPad are offered for 24 or 36 months.
Monthly payments start at $17.99 for iPhone, $11.99 for Apple Watch, $11.99 for iPad, and $24.99 for Mac. For example, the iPhone 17 Pro lease is priced at $31.99 per month for two years or $45.99 per month for one year.
At the end of the lease, customers can return the device, buy it outright, or upgrade to a newer model. The program requires a soft credit check by Klarna that does not affect the applicant's credit score, and no security deposit is needed.
Certain devices are excluded from the program, including iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, iPad (A16), and Studio Display, according to some reports. Most sources agree these models are omitted.
Customers can reduce monthly payments by trading in an existing device through Apple Trade In, and those paying with an Apple Card earn 3% Daily Cash back. The program is available through Apple's website, app, and U.S. retail stores. Apple Upgrade does not include AppleCare by default, but customers can add it.
Existing members of the iPhone Upgrade Program can move to the new leasing plan when eligible or use other financing options. According to an analyst note from Morgan Stanley, the firm estimates a $200 price increase for the iPhone 18 Pro to preserve gross margins. Apple is scheduled to report third-quarter earnings on Thursday.
Updates
Under the new Apple Upgrade program, Klarna will terminate lease agreements if a customer misses three consecutive payments, requiring the immediate payment of the full outstanding balance. While missed payments or defaults will not result in any limitations on device functionality, users may face early termination fees for returning devices before the lease ends or upgrading ahead of schedule. Additionally, customers are provided a six-month window at the end of the loan term to decide whether to upgrade, return the device, or purchase it outright.
Klarna spokesperson Clare Nordstrom stated that failing to make three consecutive payments will result in the termination of the lease agreement and require the customer to pay the full outstanding balance. While Apple confirmed that missed payments or defaults will not limit device functionality, the program does impose an early termination fee for users wishing to return devices or upgrade before the lease concludes. Additionally, customers are provided a six-month window at the end of the loan term to decide whether to upgrade, return the device, or purchase it outright.
Klarna spokesperson Clare Nordstrom stated that the lease agreement will be terminated if a user misses three consecutive payments, requiring the full outstanding balance to be paid. However, Apple spokesperson Brian Bumbery confirmed that missed payments or defaults will not result in any limitations on device functionality. Additionally, the program requires an early termination fee for users wishing to return a device before the lease ends or to upgrade early.
Klarna's Clare Nordstrom stated that missing three consecutive payments will result in lease termination and requirement to pay the full outstanding balance, though Apple spokesperson Brian Bumbery confirmed that device functionality will not be limited due to missed payments. The program allows mid-plan upgrades without penalty, requires a carrier option at checkout, and is available via Apple Store online, app, and physical US locations, but does not accept prepaid plans. Additionally, users have a six-month window at the end of the loan term to decide whether to upgrade, return, or buy the device outright.
