The new program gives you lease options for iPhone, iPad, Apple Watch and Mac.
As expected, Apple has announced a new subscription program for its devices in the US. Apple Upgrade enables consumers to pay a monthly fee for a device instead of making an (increasingly expensive) one-off payment. When the lease is up, they can swap their hardware for a newer model, keep the device or return it. There are extra fees to upgrade or keep a device.
Apple Upgrade will replace the long-running iPhone Upgrade Program and standard financing. Those who are already enrolled in the iPhone Upgrade Program will remain grandfathered in for the foreseeable future, but Apple will no longer accept new sign ups.
The new program includes a range of iPhone, iPad, Apple Watch and Mac options. Prices start at $17.99 per month for iPhone, $11.99 for both Apple Watch and iPad, and $24.99 for Mac. You don’t get your full run of Apple’s product lineup though: iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, iPad (A16) and Studio Display are not available for the Apple Upgrade program.
Leases run for 24 months for iPhones and Apple Watches, and 36 months for iPads and Macs. Consumers will be able to pay off their devices early for an extra fee. At the end of the term, customers can upgrade their device, purchase it with a one-time payment or simply return it to an Apple store to leave the program. The new Upgrade program is run by Klarna, and much like a credit card, you’ll need to be approved before you can participate. Klarna provides an app where you can keep track of payments and lease information. You can also add Apple Care to any of the devices in your lease agreement.
Apple was reportedly looking at a similar offering as recently as 2024. However, it’s believed that the company ditched the idea due to financial oversight concerns. What’s more, Klarna was already available as a buy now, pay later option in Apple Pay.
Apple Upgrade is debuting soon after the company sharply increased the prices of many iPad and Mac models. It’s widely expected that the next batch of iPhones (which Apple will all but certainly reveal in September) will be more expensive than previous models.
