Apple introduced Apple Upgrade, a groundbreaking program that allows you to lease an iPhone, Mac, iPad, or Apple Watch instead of purchasing it, with monthly payments starting at $17.99.
The plan is now available in the U.S. through the company's physical stores, its online site, and the Apple Store app.
The launch comes at a time when the prices of Apple devices keep rising, and consumers are taking longer to upgrade their equipment.
The average user in the U.S. keeps their phone for 22 months before replacing it, according to a survey by Reviews.org.
How does Apple Upgrade work?
The program operates in partnership with the digital payment service Klarna and works similarly to a car leasing arrangement: the user pays a monthly fee for a specified period, and the device does not become their property unless they choose to purchase it at the end of the contract.
iPhones and Apple Watches can be leased for 12 or 24 months, while Macs and iPads have options for 24 or 36 months.
The ticket prices are:
- iPhone: from $17.99 per month.
- Apple Watch: starting at $11.99 per month.
- iPad: from $11.99 per month.
- Mac: from $24.99 per month.
Those who trade in their current device through the Trade In program upon signing up can lower their monthly payment.
Users who pay with Apple Card will also receive a 3% cash back each month.
What happens at the end of the contract?
Upon expiration of the deadline, the user has three options:
-return the device and leave the program.
-pay the remaining amount in one go to keep it.
-return the equipment and sign a new contract to try out the latest model.
According to Applesfera, Klarna does not charge additional fees for the leasing, meaning that an iPhone priced at $1,099 can be purchased at the end of the contract for the same price, with no extra charges beyond taxes.
If the device is damaged and the user did not purchase AppleCare+, they will be responsible for the full cost of repair as determined by Klarna.
Which products are eligible and which are not?
The models included in the program are the iPhone 17, the iPhone Air, the Apple Watch Series 11, the Apple Watch Ultra 3, the MacBook Air, the MacBook Pro, the iMac, the Mac Studio, the iPad Air, the iPad Pro, and the iPad Mini.
The following entry models are excluded: the iPhone 16, the Apple Watch SE, the MacBook Neo, the Mac mini, and the iPad (A16).
To lease an iPhone, it is also mandatory to connect it to AT&T, T-Mobile, or Verizon upon registration.
Apple Upgrade replaces the previous iPhone Upgrade Program, which allowed users to switch to a new iPhone after 12 monthly payments and started at approximately $42 per month, more than double the entry-level option of the new plan.
Why is Apple launching this now?
The program debuts weeks before the anticipated launch of Apple's first foldable iPhone, scheduled for September 2026, with an estimated cost of around $2,000 according to Bloomberg.
Last June, the company had already raised the prices of Mac and iPad due to the memory chip shortage driven by demand from artificial intelligence data centers.
Mike Howard, Vice President of TechInsights, warned CNN that "we should start thinking about a $1,500 iPhone instead of a $1,000 or $1,200 iPhone."
Francisco Jeronimo, an analyst at IDC, was direct in assessing the timing: "Apple Upgrade comes precisely when Apple needs it," he noted in a statement, warning that "the real risk for Apple is that further price increases could affect the upgrade cycle."
For now, the program is only available in the U.S., although Klarna is already operating in Spain and other markets, leaving the door open for possible future expansion.
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