Apple is reportedly set to discontinue its longstanding iPhone Upgrade Program, introducing a new leasing initiative called ‘Apple Upgrade’ in its place. This transition is expected to commence on July 28, 2026, in collaboration with the financial services company Klarna.
The existing iPhone Upgrade Program allows customers to acquire a new iPhone through monthly payments, with the option to upgrade to the latest model after 12 payments. This program also includes AppleCare+ coverage and is facilitated by Citizens One with 0% APR financing. In contrast, the forthcoming Apple Upgrade program will not include AppleCare+ as part of its package.
Additionally, Apple offers ‘Apple iPhone Payments,’ another financing option through Citizens One, which enables customers to pay for an iPhone over 24 months without an integrated upgrade option.
According to reports, Apple plans to cease new enrollments for both the iPhone Upgrade Program and the standard financing option as it rolls out the Apple Upgrade program. The specifics regarding how this change will affect current participants in the iPhone Upgrade Program remain unclear. More detailed information is anticipated upon the official launch of Apple Upgrade.
This strategic shift indicates Apple’s intent to streamline its financing options, potentially offering more flexible terms to customers. However, the exclusion of AppleCare+ from the new program may influence consumer decisions, especially for those who prioritize device protection. As the launch date approaches, it will be crucial to assess how this new program aligns with consumer needs and how it positions Apple in the competitive smartphone market.
