Apple launches Upgrade leasing for iPhone, Mac, iPad, and Apple Watch

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Apple has launched Apple Upgrade, a new Klarna-backed program that lets U.S. customers lease an iPhone, iPad, Mac, or Apple Watch. Monthly payments start at $11.99, but the customer does not own the device when the lease ends.

The program is available through Apple’s website, the Apple Store app, and U.S. Apple Stores. It also replaces new enrollments in the iPhone Upgrade Program and iPhone Payments.

How Apple Upgrade works

Customers select an eligible device and choose Apple Upgrade at checkout. Klarna then runs a soft credit check, which Apple says will not affect the applicant’s credit score. Once approved, payments and lease details are managed in the Klarna app.

The available terms and advertised starting prices depend on the product:

An existing device can be traded in when starting the lease, spreading its value across the monthly payments for the initial term. It is worth checking the trade-in value first, as that credit does not carry over to a lease extension or the next upgrade.

At the end of the term, customers have three choices:

• Return the device and leave the program.
• Return it and begin a new lease on another device.
• Pay a one-time purchase option fee to keep it.

That final point is the main difference between leasing and buying with monthly installments. For example, Apple lists a 256GB iPhone 17 Pro at $31.99 a month for 24 months. Those payments total $767.76, but the phone still belongs to Klarna. Keeping it requires paying the remaining purchase amount.

Customers get six months after the initial term to decide. During that extension, monthly payments may rise. If no action is taken by the end of the six months, Klarna charges the purchase option fee.

AppleCare costs extra

AppleCare is not included in Apple Upgrade. Customers can add AppleCare+ or place the leased device on an AppleCare One plan, but Apple bills that coverage separately. Our AppleCare One and AppleCare+ comparison can help decide which option makes more sense.

The extra protection may matter more with a lease because the device must be returned in good working condition. Apple warns that damage fees may apply if it is lost, stolen, or returned in unacceptable condition.

Early upgrades and cancellations can also cost extra. After Apple’s 14-day return window, ending the lease early generally means paying all unpaid monthly lease payments through the end of the term.

Not every Apple device qualifies

Apple Upgrade covers the iPhone 17 lineup, MacBook Air, MacBook Pro, iMac, Mac Studio, iPad Pro, iPad Air, iPad mini, Apple Watch Series 11, and Apple Watch Ultra 3.

The iPhone 16 and 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, entry-level iPad with A16, and Studio Display are excluded. Education, government, military, employee, and business store purchases are also ineligible.

Leasing an iPhone requires activation with AT&T, T-Mobile, or Verizon. Applicants must be U.S. residents, meet the age requirement in their state, and provide a Social Security number or ITIN.

Existing iPhone Upgrade Program members can keep making their current payments. When they become eligible for another iPhone, Apple will offer Apple Upgrade, Apple Card Monthly Installments, carrier financing, or an outright purchase instead of renewing the old plan.

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