Apple is shaking up how Americans buy its hardware. On Tuesday, the company officially launched “Apple Upgrade,” a new device leasing program in partnership with Klarna, the Swedish buy now, pay later giant. The move marks a major shift in Apple’s sales strategy, as it retires its longtime iPhone Upgrade Program and pivots to a more flexible, car lease-style approach for iPhones, iPads, Macs, and Apple Watches.
The new Apple Upgrade program lets eligible US customers lease an iPhone for up to two years, with payments starting at just $17.99 per month. Apple Watch leases begin at $11.99 monthly, Macs at $24.99, and iPads at $11.99, with the program available both online and in Apple’s retail stores. Notably, these prices don’t include AppleCare, which was bundled with the discontinued iPhone Upgrade Program—and there’s no extra cost or hidden fee beyond taxes if you decide to purchase your device at the end of the lease.
Leasing Details and Device Eligibility
The program offers one- and two-year leases for iPhones and Apple Watches, and two- or three-year terms for Macs and iPads. At the end of your lease, you can return the device and end the arrangement, pay the remaining balance to keep it, or opt to upgrade to the latest model with a new lease. Apple even provides a prepaid shipping box for those returning or upgrading their device. If you end the lease early, you’ll owe the remaining payments, but there’s no penalty for paying off your lease ahead of schedule.
There are some caveats: Apple Upgrade isn’t available for the latest iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, iPad (A16), or Studio Display. The program also excludes purchases made through Apple’s employee, business, government, and veteran discount plans. Refurbished devices are ineligible, and Apple Upgrade can’t be combined with education discounts.
Why Now? And What’s Next?
The new Klarna partnership could make upgrading more appealing, especially as the average iPhone replacement cycle in the US has stretched to nearly four years, according to Bernstein estimates. Under the lease, devices must be returned—or purchased—after 24 (or 36) months. With the iPhone Upgrade Program now discontinued, current users can finish paying off their existing devices, but will need to switch to Apple Upgrade or another payment method for future purchases.
For customers who want the latest gear without a huge upfront cost, Apple Upgrade is a notable shift—offering a lower monthly price point than the now-retired iPhone Upgrade Program, which cost over $42/month for an iPhone (including AppleCare). Meanwhile, Apple is expected to launch a foldable phone alongside the iPhone 18 Pro this September, with some analysts estimating a $2,500 price tag. For now, the Klarna-powered Upgrade program could help more people stay current with Apple’s latest devices—without breaking the bank.
