Apple has launched a new leasing programme called Apple Upgrade, allowing customers to pay a monthly fee for an iPhone, Apple Watch, Mac, or iPad instead of purchasing the device outright. The programme, run in partnership with buy-now-pay-later firm Klarna, is now live on the Apple Store online, in the Apple Store app, and at physical Apple Store locations.
How does the leasing plans work?
Apple Upgrade offers 12-month and 24-month leasing options for iPhone and Apple Watch, while Mac and iPad come with 24- and 36-month terms. Monthly payments start at $17.99 for iPhone, $11.99 for Apple Watch, $24.99 for Mac, and $11.99 for iPad. Customers can lower these payments further by trading in an existing device through Apple Trade In, and those who pay using an Apple Card earn 3 percent Daily Cash back on their monthly instalments.
Karen Rasmussen, Apple's vice president of the Apple Store online, said the company wanted to give customers a more flexible way to pay for its products both online and in-store. This programhas launched in the US for now. India rollout is not known yet.
Process of renting products from Apple
Applicants go through a soft credit inquiry that does not affect their credit score, and Apple says approval from Klarna typically comes within minutes. In-store customers can walk out with their device immediately, while online orders can be shipped or picked up in-store. Devices come with Apple's Personal Setup service to help customers configure them.
The catch is that customers do not own the device at any point during the lease unless they eventually pay it off in full. At the end of a lease term, users can upgrade to a newer model, buy out the device with a lump sum, or return it and exit the programme altogether. Ending a lease early can trigger substantial fees, and if a leased device is lost, stolen, or returned in poor condition, customers may be charged for the damage since insurance is not bundled into the plan.
iPhone Upgrade Program is being phased out
With Apple Upgrade now live, Apple has discontinued its older iPhone Upgrade Program and iPhone Payments option. Customers currently enrolled in the iPhone Upgrade Program will be offered a choice between switching to Apple Upgrade, financing through Apple Card Monthly Installments, paying outright, or opting for financing through their carrier.
Certain devices remain excluded from the new leasing scheme entirely, including the iPhone 16, iPhone 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, iPad (A16), and Studio Display.
Not everyone qualifies for Apple Upgrade
Applicants must be at least 18, hold a valid Social Security number or individual taxpayer identification number, and have an Apple Account and Klarna Account in good standing, among other requirements. For iPhones specifically, customers must select an eligible carrier plan from AT&T, T-Mobile, or Verizon, and cannot use a prepaid plan, though the leased device itself remains unlocked regardless of carrier choice.
If a customer takes no action by the end of their lease term, the agreement automatically converts to a month-to-month lease for up to six months, during which monthly payments may increase. Should the customer still take no action after that extension period, Apple will charge the device's purchase fee by default.
