Apple Launched A New New Leasing Program

 The tech giant has launched a new Apple Upgrade, which is a new leasing program.  It is powered by Klarna; it lets customers lease select iPhones, iPads, Macs, and Apple Watches with low monthly payments and the option to upgrade, return, or buy out the device at the end of the term. It replaces the long-running iPhone Upgrade Program, which is no longer accepting new enrollments.

How Apple Upgrade Works

Customers select an eligible product and a lease term during checkout on apple.com, in the Apple Store app, or at an Apple Store. A soft credit check is performed (no hard inquiry or score impact). No down payment is allowed or required.

Lease terms are:

• iPhone and Apple Watch: 12 or 24 months
• iPad and Mac: 24 or 36 months

Monthly payments are fixed and handled through the Klarna app. Examples of starting prices include:

• iPhone 17e: from $17.99/month (24 months)
• iPhone 17: from $22.99/month (24 months)
• iPhone 17 Pro: from $31.99/month (24 months)
• Apple Watch Series 11: from $11.99/month (24 months)
• iPad mini: from $11.99/month (36 months)
• MacBook Air: from $24.99/month (36 months)

Trading in an eligible device at the start of the lease reduces the monthly payment for that term only. AppleCare+ is not included and must be purchased separately. It is strongly recommended because returned devices must be in good condition; otherwise, damage fees can apply. Lost or stolen devices without Theft and Loss coverage typically require paying remaining lease obligations or a purchase-option fee.

At the end of the lease, customers have three choices:

• Upgrade, return the current device and start a new lease on a newer model.
• Return the device and leave the program.
• Buy the device outright by paying the residual, essentially the list price minus payments already made, excluding tax and any fees.

There is a decision window after the term ends. Early upgrades or terminations are possible but generally require covering remaining payments or a fee. Multiple devices can be leased separately. iPhones must be activated on AT&T, T-Mobile, or Verizon postpaid plans. Business and education purchases are not eligible.

How It Differs From the Old iPhone Upgrade Program

The previous iPhone Upgrade Program (launched in 2015 with the iPhone 6s and discontinued for new sign-ups in 2026) was fundamentally different in structure and scope.

The old program effectively functioned like a 24-month interest-free loan with a built-in annual upgrade path and protection. Payments built equity toward ownership. The new program is closer to a car lease: you pay for use, not ownership, and the lower headline monthly figures largely reflect the absence of bundled AppleCare+ and the lease structure.

Existing iPhone Upgrade Program customers can continue making their remaining payments. When their upgrade window arrives, Apple directs them toward Apple Upgrade, Apple Card Monthly Installments, buying outright, or carrier financing.

Key Trade-offs

Pros of the new program

• Expands the “always-new-device” model beyond iPhones to Macs, iPads, and Watches.
• Lower advertised monthly payments and flexible term lengths.
• Trade-in credit can meaningfully reduce payments.
• Soft credit check and straightforward end-of-term options (upgrade/return/buy).
• Apple Card users can earn 3% Daily Cash on the lease payments.

Cons

• You do not own the device unless you buy it out.
• AppleCare+ is now an extra cost, which can erase or reverse the apparent monthly savings for customers who want full protection.
• Early exit or upgrade usually involves fees equal to remaining payments or similar.
• Not all models qualify (premium/mid-range focus).
• Return condition requirements create risk without AppleCare.

In short, Apple Upgrade modernizes and broadens the upgrade-style payment experience while shifting from financing to a pure lease model. For customers who upgrade frequently and value the lowest possible monthly outlay without needing maximum protection, the new program can look attractive. Those who preferred the old program’s ownership path and included AppleCare+ may find the total cost of staying fully covered higher than before. Full details, eligibility, and current pricing are available on Apple’s official Apple Upgrade page.