Apple is reportedly preparing a new way for U.S. customers to lease iPhones, iPads, Macs, and Apple Watches. The program, called Apple Upgrade, could launch on July 28 and replace two of the company’s existing iPhone payment options.
Bloomberg’s Mark Gurman reports that Apple will offer the program online and at its U.S. retail stores, with Klarna providing the financial backing. Apple and Klarna have not announced the service, so its launch date and terms could still change.
How Apple Upgrade may work
Apple Upgrade would work more like a car lease than a standard installment purchase. Customers could upgrade before the term ends, pay off the device early, or choose to keep or return it at the end. Some of those choices may involve additional fees.
The reported terms vary by product:
| Device | Lease term |
|---|---|
| iPhone and Apple Watch | 24 months |
| Mac and iPad | 36 months |
A soft credit check would be required. Most models are expected to qualify, though the iPhone 16, entry-level iPad, Apple Watch SE, and MacBook Neo will reportedly be excluded. Business and education purchases would not be eligible either.
The biggest unanswered question is the total cost. Bloomberg says Apple plans to advertise lower monthly payments, but the report does not disclose interest rates, buyout prices, or a complete fee schedule. A smaller monthly bill does not necessarily mean a cheaper device once every payment and fee is counted.
Apple’s current iPhone upgrade plan may go away
Apple reportedly plans to stop accepting new customers for its iPhone Upgrade Program and standard iPhone financing after Apple Upgrade arrives.
The current Upgrade Program uses a 24-month installment loan, lets customers trade in and upgrade after making the equivalent of 12 payments, and bundles AppleCare+ into the monthly price. Apple Upgrade would cover more types of devices, but it would not include AppleCare. Buyers who want coverage would need to add it separately.
Apple has already moved away from handling some consumer credit itself. After ending Apple Pay Later in 2024, it began supporting installment plans from third-party providers, including Klarna, through Apple Pay.
Lower payments arrive after Apple raised hardware prices
The reported launch follows price increases across Apple’s Mac and iPad lineups in June. Apple blamed unusually high memory and storage costs, with some products becoming hundreds of dollars more expensive.
Leasing gives Apple a way to make those higher prices look more manageable month to month. Whether Apple Upgrade is a good deal will depend on the details Apple has not revealed yet: APR, early-upgrade fees, end-of-lease buyout costs, and what happens when a returned device is damaged.
If the reported July 28 launch happens, shoppers should compare the full amount payable with buying outright, Apple Card Monthly Installments, carrier financing, and trade-in offers. The monthly figure alone will not show which option costs less.
