Apple Upgrade launches in the US with Klarna-backed leases for iPhone, Mac, iPad, and Apple Watch. Here’s the pricing, the terms, and what the fine print says.
Apple has launched Apple Upgrade, a hardware leasing program covering iPhone, Apple Watch, Mac, and iPad, available from Tuesday in the United States. The program is provided by Klarna, which handles credit approval and payment servicing.
The move also ends two long-running Apple financing options: the company confirmed it will no longer offer the iPhone Upgrade Program or iPhone Payments in the US.
How it works
Apple Upgrade appears as a payment option in the standard checkout flow — on Apple’s website, in the Apple Store app, and in physical Apple Stores.
Terms differ by product category. iPhone and Apple Watch are offered on 12- and 24-month leases; Mac and iPad on 24- and 36-month terms. Apple notes that 12- and 36-month terms are not available on every model.
Applicants go through a soft credit inquiry, which Apple says does not affect a credit score. Approval is handled by Klarna and, per Apple, takes minutes. Once enrolled, customers manage billing schedules and payment details inside the Klarna app rather than through Apple.
Entry pricing, as stated by Apple:
Category
Starting monthly lease
iPhone
$17.99
Apple Watch
$11.99
iPad
$11.99
Mac
$24.99
Trading in an existing device at enrolment can reduce the monthly payment. Apple cautions that advertised monthly figures may not already account for trade-in value.
Representative pricing
Apple’s own disclosure gives four worked examples. All figures exclude tax and any trade-in credit:
iPhone 17 Pro 256GB ($1,099 purchase price) — $31.99/month over 24 months, or $45.99/month over 12 months
Apple Watch Series 11 GPS 42mm ($399) — $11.99/month over 24 months, or $21.99/month over 12 months
11-inch iPad Pro 256GB ($1,199) — $24.99/month over 36 months, or $31.99/month over 24 months
14-inch MacBook Pro 16GB ($1,999) — $38.99/month over 36 months, or $53.99/month over 24 months
The end-of-term options
At the end of an initial lease, customers have three routes: enter a new lease and upgrade to a current-generation device, pay a one-time purchase fee to buy the device outright, or return it and exit.
Apple is explicit on one point: the customer does not own the device unless the purchase fee is paid.
There is also a default path for customers who do nothing. Apple’s terms state that an untouched lease rolls into a month-to-month arrangement for up to six months, during which payments may rise. At the end of that window, the customer is charged the purchase fee.
What the fine print adds
Several conditions in Apple’s disclosures did not make it into early coverage and are worth reading before enrolling:
Early termination may carry fees. Apple’s terms warn of potentially substantial charges for ending a lease before the initial term completes.
No insurance is included. Damage fees may apply if a device is lost, stolen, or returned outside the required condition. AppleCare+ or AppleCare One can be added at extra monthly cost.
Upgrades are not guaranteed. They require a new lease agreement, return of the prior device, and fresh credit approval — and the new monthly payment may be higher than the old one.
iPhone leases require a carrier. Customers must select AT&T, T-Mobile, or Verizon, and prepaid plans are excluded. The handset itself ships unlocked and can be moved between carriers.
Eligibility is narrow. Leases are limited to US residents outside US territories, aged 18 or over, with a valid SSN or ITIN, an Apple Account in good standing, and a Klarna account.
Excluded from purchase programs. Apple Upgrade is unavailable through education pricing, employee purchase plans, Apple at Work, or government, veteran, and military stores.
Products not included
Apple lists seven items as ineligible: iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, iPad (A16), and Studio Display.
Other details
First payments are due roughly 30 days after a device ships or becomes available for pickup. No security deposit is required. Lease payments made with Apple Card earn 3 percent Daily Cash.
Karen Rasmussen, Apple’s vice president of the Apple Store online, framed the launch as giving customers “a more flexible way to pay for the products they love.”
Customers currently enrolled in the iPhone Upgrade Program will not be forced off immediately. When they become eligible to upgrade, Apple says they can move to an Apple Upgrade lease, switch to Apple Card Monthly Installments, buy outright, or take carrier financing.
