Apple Replaces iPhone Upgrade Program With New Klarna-Powered Apple Upgrade

Apple has officially retired its iPhone Upgrade Program and introduced Apple Upgrade, a new leasing service powered by Klarna. Available now in the U.S., the new program lets customers lease an iPhone, iPad, Mac, or Apple Watch with lower starting monthly payments than the previous upgrade plan.

Pricing starts at $17.99 per month for iPhone, $11.99 for Apple Watch, $11.99 for iPad, and $24.99 for Mac. Unlike the previous iPhone Upgrade Program, AppleCare+ is no longer included by default and must be added separately if desired.

How Apple Upgrade Works

Apple offers flexible lease terms depending on the device. iPhones and Apple Watches can be leased for 12 or 24 months, while Macs and iPads are available on 24 or 36-month plans.

At the end of the lease, customers have three options:

Return the device and end the lease.
Upgrade to a newer device with a new lease.
Pay the remaining balance and keep the device.

Apple says Klarna does not charge extra leasing fees, meaning customers who buy the device after the lease will pay its original retail price, excluding taxes. Trade-ins can also reduce monthly payments, and Apple will provide a prepaid shipping box for returns or upgrades.

What Existing Customers Should Know

The previous iPhone Upgrade Program is no longer available for new customers, although current members can continue making payments on their existing devices. For future upgrades, they’ll need to switch to Apple Upgrade or choose another financing option.

To lease an iPhone, customers must activate it with AT&T, Verizon, or T-Mobile, and a soft credit check through Klarna is required. While the leased iPhones are unlocked, prepaid carriers and MVNOs are not supported during checkout.

Apple Upgrade expands leasing to more Apple devices and offers lower monthly costs, but users should remember that they won’t own the device unless they pay the remaining balance at the end of the lease.