Apple has officially launched a new device leasing program called Apple Upgrade in the United States, offering customers a flexible way to access iPhones, Apple Watches, Macs, and iPads through monthly payments. The program is powered by Klarna and is available through the Apple online store, Apple Store app, and retail Apple Stores nationwide.
The move comes as rising component and memory costs put upward pressure on device prices, prompting Apple to provide a lower monthly entry point rather than relying solely on upfront purchases.
Monthly Leases Starting at $11.99
Apple Upgrade offers two lease durations for most devices:
- Apple Watch and iPhone: 12-month or 24-month options
- Mac and iPad: 24-month or 36-month options
Monthly payments start at:
- iPhone: $17.99
- Apple Watch: $11.99
- Mac: $24.99
- iPad: $11.99
Exact charges depend on the specific model and lease duration. For example, an unlocked iPhone 17 Pro is reportedly $31.99 per month for 24 months, or $45.99 per month for a 12-month lease.
Customers can also save by trading in their previous device through the Apple Trade In program. In addition, lease payments made with an Apple Card earn 3% daily cash rewards.
“At Apple, we put the customer at the center of everything we do,” said Karen Rasmussen, Vice President of the online Apple Store. “We’re thrilled that Apple Upgrade offers our customers, both online and in-store, a more flexible way to pay for the products they love.”
How Apple Upgrade Works
Customers can apply online or in-store. Klarna performs a soft credit inquiry that does not affect credit scores. Once approved, users can receive their devices via delivery, store pickup, or immediate in-store collection.
At the end of the lease, customers have three options:
- Return the device
- Upgrade to a newer model
- Purchase the device outright with a one-time payment
Lease details, including billing schedules and outstanding payments, are managed through the Klarna app. According to program terms, no security deposit is required, and Klarna will not charge late fees—though leases may be terminated after three consecutive missed payments.
Existing iPhone Programs Replaced
With the launch of Apple Upgrade, Apple is discontinuing the older iPhone Upgrade Program and iPhone Payments in the US. Existing customers may switch to Apple Upgrade, Apple Card Monthly Installments, carrier financing, or outright purchases.
The move could also shorten Apple’s device replacement cycle. According to Bernstein estimates, the average iPhone upgrade period has stretched to nearly four years.
Apple is now competing more directly with carriers like AT&T, Verizon, and T-Mobile, which use installment plans and trade-in incentives to retain customers. The leasing model may help Apple mitigate the impact of potential price increases while creating more predictable upgrade demand across its product ecosystem.