A device leasing model that covers iPhones, Macs, iPads, and Apple Watches is replacing the iPhone Upgrade Program, marking one of the biggest changes to how Apple sells hardware. The new program, called Apple Upgrade, launches July 28 in the US through a partnership with Klarna Group, according to people with knowledge of the matter who spoke to Bloomberg's Mark Gurman. Apple will stop accepting new enrollments in its current iPhone Upgrade Program and standard iPhone financing once the new service goes live.
Apple Upgrade functions like a subscription. Users pay a monthly fee for their device and can pay off the balance early, trade up to a newer model before the term ends, or keep the hardware after the leasing period concludes. The service is available at Apple retail stores and online.
iPhone and Apple Watch leases run 24 months. iPad and Mac leases extend to 36 months. The program requires a soft credit check through Klarna, and additional fees may apply in certain upgrade or early-payoff scenarios.
A notable departure from the current iPhone Upgrade Program: Apple Upgrade does not include AppleCare coverage. The existing program bundles AppleCare+ into monthly payments, but the new leasing plan drops that protection entirely.
Some lower-priced devices are excluded. The Apple Watch SE, base-model iPad, iPhone 16, and MacBook Neo are not eligible.
Business and education purchases are also barred from the program.
The launch comes one month after Apple raised prices on Macs and iPads, citing rising component and memory costs. Apple Upgrade is positioned as a way to keep monthly payments manageable despite those increases, with the company marketing it as offering lower payments than existing financing options.
Apple had explored building its own in-house hardware subscription service for years, but Gurman reported the company abandoned that plan in 2024. The Klarna partnership represents a faster path to market, repurposing a buy-now-pay-later infrastructure instead of building a financing system from scratch.
