Apple Launches Device Leasing Program Via Klarna, Replacing iPhone Upgrade Plan

Apple has introduced Apple Upgrade, a device leasing program operated by Klarna that covers iPhones, iPads, Apple Watches, and Macs, replacing the iPhone Upgrade Program in the US.

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Apple has introduced a new device leasing program in the United States called Apple Upgrade, which replaces the iPhone Upgrade Program and iPhone Payments. The program is operated by Klarna and covers iPhones, iPads, Apple Watches, and Macs, with monthly prices starting at $18 for iPhone, $12 for Apple Watch, $12 for iPad, and $25 for Mac.

Lease terms vary by device: iPhone and Apple Watch can be leased for 12 or 24 months, while iPad and Mac are available for 24 or 36 months. At the end of the lease, customers can upgrade to a new device, purchase the leased item with a one-time payment, or return it to an Apple Store. Extra fees apply for early upgrades, keeping the device, or terminating the lease early. If a device is not returned or paid off by the end of the term, customers are moved to monthly payments for up to six months, and those payments may increase. The device must be returned in good working condition; damage fees may apply.

AppleCare+ is optional and not included in the lease, unlike the previous iPhone Upgrade Program where it was bundled. To enroll, customers must pass a credit check via a soft credit inquiry, which Apple says does not affect credit scores. Klarna provides an app for tracking payments and lease information.

Certain devices are excluded from the program: iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, iPad (A16), and Studio Display. Customers currently in the iPhone Upgrade Program can switch to Apple Upgrade, choose Apple Card Monthly Installments, buy their device outright, or move to carrier financing.

Apple Upgrade is available online through the Apple Store and in US Apple Stores. The program is initially limited to the United States, with no plans announced for other markets. Apple already offered Klarna as a payment option in Apple Pay, and had reportedly considered a similar leasing offering in 2024 but dropped it over financial oversight concerns.